A reliable sources report that the United States has recently taken to encouraging India 's eastward drive and stronger Indo-Japanese coordination. But even without USA urging, Japan and India would be inclined to take advantage of each other as a means of undercutting China. Recently India signed a free trade deal with Japan on 16 Feb 2011 and with Malaysia on 18 Feb 2011. China's push into the Indian Ocean has prompted India to accelerate its ongoing eastward derive to expand access to resources, markets and strategic allies. European Union is a significant example in this regard. Similarly, the increasing cooperation between South East Asian Countries from the forum of (ASEAN) is bringing stability and prosperity in that region.
Indian's trade deals with Japan and Malaysia for Economic Partnership Agreement (CEPA) and Comprehensive Economic Cooperation Agreement (CECA) indicate its deepening interests in Southeast and East Asia. India has already signing of $15 billion in business agreements with Indonesia in January 2011. The two decade ago during the turmoil and collapses of his former patron and main trade partner, Soviet Union, India has taken a new initiative for his foreign policy and opened new doors for uprising of his trade. India also contact with his new allies as new source of growth.
India embracing their hands with ASEAN for exporting their goods but due to big trading partner China only symbolic access were given to India. Moreover ASEAN countries want to continue trading and expanding economic integration with China. United State renewed his policy in the region for encourage his allies to promote their economic among each other against China's rise. On the other hand Chinese economics and think tanks are also making a new trading policy to take advantages for competing such a precarious situation.
While Malaysia and Japan expressed his desired to rejuvenate its outward economic strategy by signing more trade deals with partners like India and increasing high-tech exports. Malaysia hopes to boost trade along the line of what happened when and Singapore signed a CECA in 2005. It is also worth mentioning here that Malaysia and India is 2nd largest trade partner in ASEAN. Malaysia will thus hope that better ties with India bring economic benefits while helping to manage, or at least not complicating, this aspect of its domestic politics. While India and Japan share an interest in preventing China from becoming an overbearing regional power, enabling them to work together out of their self interested desires to distract China's energies.
Due to nuclear state of Pakistan India feels a greater security threat. But on the other hand Pakistan also feel threat from India specially Indian involvement in Blochistan Province and destroy their territorial integrity. Moreover all neighbors are worried against the involvement of India in their countries. Although India historically projected power into Southeast Asia, but its dreams cannot completed without supporting of Pakistan.
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