The Asia-Pacific Economic Cooperation (APEC) Summit concluded in Gyeongju, South Korea, on 1 November 2025. The summit’s agenda emphasised wide-ranging issues from boosting trade and investment, cooperation in artificial intelligence (AI), demographic challenges, digital transformation, innovation, and green/low-carbon growth. For the first time, the leaders’ statement highlighted “AI Plus,” the digital economy, and creative industries, reflecting APEC’s evolution from trade liberalisation to broader “economy of the future” themes. Despite these discussions, membership expansion was not addressed—continuing a pattern seen year after year. India, Asia’s third-largest economy, remains excluded despite applications dating back over two decades. This explainer examines APEC’s origins, significance, and the structural, historical, and geopolitical reasons for India’s absence.
What Is APEC and Its Significance?
APEC was established in November 1989 as a cooperative, multilateral economic and trade forum. Its founding 12 members—Australia, Brunei, Canada, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, and the United States—were deeply integrated with the Pacific Rim. It operates on principles of open dialogue, equal say for all economies, consensus-based decision-making, and voluntary commitments without binding treaties or obligations.
APEC stems from the post-Cold War transformation of regional geopolitics and the rise of geoeconomics. Australia’s Prime Minister Bob Hawke is credited with its realisation, but it would not have been possible without the behind-the-scenes Japanese efforts.
APEC’s 21 member economies account for over 60% of global GDP, more than 50% of world trade, and about 38% of the global population, making it a pivotal forum for regional stability and growth. In a transactional world, APEC provides a neutral dialogue forum, as seen in the 2025 Trump-Xi meeting on the sidelines of the Summit. The leaders agreed to de-escalate trade tensions, signalling a pause in bilateral frictions amid global economic uncertainty. APEC is fostering resilience amid challenges to the international trading system.
Why India Is Not a Member of APEC?
India’s exclusion from APEC can be traced to a combination of historical timing, institutional moratoriums, and geopolitical hurdles. When the forum was founded in 1989, India’s economy remained largely closed and protectionist. Although economic liberalisation began in 1991, a perception persisted among others that New Delhi is hesitant to join large economic groupings that embrace free trade and investment. This reluctance was visible at the 1997 APEC Leaders’ Meeting in Vancouver, where India—among the largest economies seeking membership—was not selected in favour of Peru, Russia, and Vietnam. Many observers viewed the decision as a reflection of India’s unwillingness at the time to fully commit to APEC’s founding norms of open trade and investment.
Following this, a ten-year moratorium on new members was imposed at Vancouver to allow APEC to absorb its rapid expansion and strengthen its institutional framework. Though the moratorium was meant to expire in 2007, it was later extended to 2010, effectively blocking India’s window of opportunity. When the question of new members arose at the 2007 Sydney Summit, leaders opted to prioritise consolidation and regional integration over enlargement. Three years later, at the Yokohama Summit in 2010, they once again deferred the decision, citing the need for efficiency in achieving results. Since then, a de facto permanent moratorium has remained in place. Despite sustained interest from economies such as India, Cambodia, Colombia, Costa Rica, Ecuador, Macau, Mongolia, Pakistan, Panama, and Sri Lanka, no new members have joined since 1998, and the issue has remained off the table at successive summits—including in 2025.
In the mid-2010s, India’s push for membership regained traction through the Task Force on India’s APEC Membership, launched in 2015 by the Confederation of Indian Industry and the Asia Society Policy Institute. Co-chaired by former Australian Prime Minister Kevin Rudd, Mastercard CEO Ajay Banga, and former Indian Foreign Secretary Shyam Saran, the task force sought to build consensus among member economies. It succeeded in garnering support from Australia, Japan, and China. However, the United States, a key player in APEC’s consensus-based framework, remained hesitant. Washington linked its support to India’s willingness to adopt pro-U.S. positions at the World Trade Organization and to resolve several bilateral trade issues. A senior U.S. official clarified in 2015 that there was no active consideration for expansion, even as President Barack Obama welcomed India’s interest. From India’s perspective, APEC was not a trade negotiation platform but one designed to promote investment, business linkages, and standard-setting—areas that could have substantially benefited Indian industry. The U.S. attempt to use APEC as leverage for broader trade negotiations effectively derailed India’s entry bid. India’s APEC ambitions were set aside, with New Delhi shifting its focus to bilateral and regional trade frameworks instead.
What has been India’s Case for Inclusion in APEC?
India argues for membership based on geography (western gateway to Asia-Pacific), economic size, trade interactions, and policy convergence. Its ‘Act East Policy’ aligns with APEC goals in trade, investment, infrastructure, connectivity, and people-to-people ties.
India’s ongoing economic reforms and convergence with regional standards have brought its policy priorities closer to those of APEC. Initiatives such as Make in India, Digital India, labour and business reforms, and the government’s focus on improving the ease of doing business align closely with APEC’s target of reducing business transaction costs, particularly in areas such as starting new enterprises, accessing credit, cross-border trade, and enforcing contracts. India’s liberalisation across key service sectors, along with efforts to simplify customs procedures, reform government procurement, and strengthen competition laws, mirrors the structural transformations pursued by many APEC developing economies.
APEC membership would also create tangible benefits in terms of supply chains and standards. It would lower transaction costs, promote regulatory harmonisation, and encourage the mutual recognition of professional qualifications. Such integration is crucial to India’s ambition of becoming a global manufacturing hub. Indian businesses would gain from mechanisms like the APEC Business Travel Card, which facilitates visa-free travel and business mobility across the region.
Beyond economics, India’s inclusion would bring broader strategic and institutional advantages to APEC. As a G20 member, a founding participant of the East Asia Summit, India already plays a pivotal role in shaping the region’s economic and political architecture. Its participation would inject dynamism into APEC, help balance China’s overwhelming influence, and reinforce the forum’s relevance in the evolving Indo-Pacific order. India’s engagement would thus not only advance its domestic reform agenda but also strengthen APEC’s 21st-century identity—anchored in openness, inclusivity, and a shared vision of a free and open Indo-Pacific.
Does India Still Want to Join, and What Role Does APEC Play Today?
India’s priorities have shifted to bilateral FTAs with the U.S., EU, and Canada, which offer more flexibility and align with India’s domestic needs. As Professor C. Raja Mohan notes, multilateral forums like APEC are increasingly deprioritised in that regard. However, since APEC’s relevance has grown over the years, particularly in today’s uncertain world, it could aid India in realising untapped trade-investment potential with close strategic ties to many members.
For APEC, India’s absence is also an anomaly, given India’s role as a growth engine in Asia. India’s inclusion would strengthen APEC institutionally and balance influences. As APEC evolves, India’s inclusion remains a logical, overdue step.