INDIA’s case for APEC

Context: The 2023 Asia Pacific Economic Cooperation (APEC) summit was held in San Francisco, the US hosted APEC after a gap of 12 years

• The outcome of the summit process is that China and US have resumed their bilateral talks. The US-China Summit restored communications, including military, which was suspended by China.
• Further Golden Gate declaration was adopted by the APEC Economic Leaders' Meeting in San Francisco, reflecting a shared commitment to APEC's mission and emphasizes the need for responsive policies addressing economic challenges
• The declaration underscores the importance of economic integration, market-driven approaches, and inclusivity in addressing global issues such as climate change and digital transformation.
• The declaration highlights the role of digital technology, efforts to bridge the digital divide, collaboration against corruption and reaffirms APEC's dedication to a rules-based multilateral trading system.

Thus in this scenario it is important to understand the candidature of India for APEC i.e. the credentials, benefits and the challenges that India will face for securing membership.

India as a perfect fit for APEC?

1. Economic Size and Growth Potential: India boasts the world's fifth-largest economy and is the third-largest in Asia. Its significant and sustained economic growth positions it as a crucial source of long-term economic expansion for the world. Inclusion in APEC would allow member countries to tap into India's growing economy.
2. Infrastructure Investment Needs: India's ambitious infrastructure development plans, requiring over $1 trillion in investment over the next decade, present a considerable opportunity for APEC countries. Collaborating with India could benefit member nations by participating in and contributing to India's infrastructure growth, especially at a time when some economies in the region are experiencing strained growth.
3. Economic Liberalization: India has undertaken substantial economic liberalization since 1991, aligning its policies with global economic trends. This evolution makes India more compatible with the liberalized and free-market principles that APEC promotes.
4. Demographic Dividend: With a large and youthful population, India can offset the impact of aging populations in some APEC economies. India's demographic dividend provides a potential workforce and consumer base, contributing positively to the economic growth of the region.
5. Strategic Balance and Non-Alignment: India's inclusion in APEC could contribute to strategic balance within the group. India has a history of non-alignment, which might provide comfort to smaller members of the grouping, as it suggests a diplomatic approach that avoids alignment with any particular power bloc.
6. Alignment with Indo-Pacific Policy: India's inclusion aligns with the recent Indo-Pacific policy of the United States. This alignment may foster greater cooperation between APEC and India, creating synergies in addressing regional and global challenges.

Benefits for India in joining APEC 

1. Act East Policy Enhancement: APEC membership would significantly boost India's Act East Policy, strengthening ties and cooperation with countries in the Asia-Pacific region. This could lead to higher trade volumes, increased economic collaboration, and improved physical connectivity, aligning with India's strategic interests in the East. This will further strengthen the Comprehensive Strategic Partnership that India has entered with ASEAN.
2. Facilitation of Economic Reforms: Joining APEC could facilitate the implementation of economic reforms in India. Exposure to APEC's economic principles and practices may contribute to enhancing India's competitiveness. It could also provide a platform for sharing best practices and learning from other member economies, ultimately contributing to India's economic development.
3. Preparation for Emerging Trade Agreements: APEC membership could prepare India for potential inclusion in emerging trade agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Access to these agreements could open up new markets, increase trade opportunities, and enhance India's economic integration with the Asia-Pacific region.
4. Boost to Strategic Partnership with the USA: APEC membership for India could strengthen the strategic partnership between India and the United States. Shared membership in APEC could provide a common platform for both countries to collaborate on economic issues, fostering deeper ties in trade, investment, and strategic cooperation.
5. Economic Growth and Global Reach: APEC membership has the potential to significantly boost India's economic growth by expanding its reach in foreign markets. Access to APEC markets, investment sources, and value chains could accelerate India's integration into the global economy, particularly in the manufacturing sector.

Challenges that India faces in securing membership of APEC

India has been attempting to join APEC since 1993 but still has not got membership as 

1. Geographic Location: A significant hurdle is India's geographic location. APEC, as the Asia-Pacific Economic Cooperation, primarily involves countries bordering the Pacific Ocean. Since India does not have a direct Pacific coastline, its geographic location is considered a challenge for its APEC membership. The organization's focus on the Pacific Rim region might limit India's eligibility based on geographical criteria.
2. Concerns about Shifting Focus: APEC members have expressed concerns that India's inclusion might shift the focus of the organization away from the Pacific Rim. This suggests that there are apprehensions among current members that India's participation could alter the established priorities and dynamics of the APEC forum.
3. Economic Policies: India's economic policies are perceived as inward-looking and protective, which contrasts with the liberalized and free-market principles that APEC promotes. The divergence in economic approaches may contribute to scepticism among APEC members about India's compatibility with the organization's overarching economic philosophy.
4. Trade Negotiation Record: India's record in trade negotiations, both bilaterally and at the World Trade Organization (WTO), has raised scepticism among APEC members. There may be concerns that India's approach to trade negotiations could affect the momentum and efficiency of APEC forums.