Introduction
- The Prime Minister of India participated in the 21st East Asia Summit and the ASEAN-India Summit in Laos, aiming to further enhance India-ASEAN relations.
- During the summit, PM Modi outlined a 10-point plan to strengthen ties with ASEAN, signaling India’s renewed focus on one of its most strategic partnerships in Asia and beyond.
- Earlier this year, Delhi hosted the prime ministers of Malaysia and Vietnam, while External Affairs Minister S. Jaishankar engaged with several ASEAN counterparts, both in the region and in Delhi.
- These interactions have reaffirmed the strong goodwill India enjoys in the ASEAN region, along with the high expectations from India’s leadership.
10-Point Plan for India-ASEAN Relations
- ASEAN-India Year of Tourism (2025): India will contribute USD 5 million for joint tourism activities.
- Celebration of a Decade of Act East Policy: Events include Youth Summit, Start-up Festival, Hackathon, Music Festival, and Delhi Dialogue.
- Women Scientists Conclave: Organized under the ASEAN-India Science and Technology Development Fund to promote women in science.
- Increased Scholarships for ASEAN Students: Scholarship capacity at Nalanda University will be doubled. New scholarships will be introduced in Indian Agricultural Universities.
- Review of Trade in Goods Agreement: Scheduled for completion by 2025 to enhance bilateral trade.
- Disaster Resilience Initiatives: India will contribute USD 5 million to support disaster resilience projects.
- Health Ministers’ Track: New mechanism to improve health resilience and collaboration among ASEAN and India.
- ASEAN-India Cyber Policy Dialogue: Regular cyber policy dialogues to enhance digital and cyber security.
- Green Hydrogen Workshop: A workshop will explore sustainable energy possibilities through green hydrogen.
- ‘Plant a Tree for Mother’ Campaign: ASEAN leaders are invited to participate in this climate resilience initiative.
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India-ASEAN Relations
- Ancient Ties: India’s connection with Southeast Asia dates back over two millennia, rooted in peaceful interactions involving culture, religion, art, and commerce. These ancient connections fostered lasting bonds through shared languages, literature, and economic exchanges.
- Formal Engagement (1992): India initiated formal diplomatic relations with ASEAN in 1992 by becoming a Sectoral Dialogue Partner, laying the groundwork for cooperation in trade and cultural exchanges through Secretary-level interactions.
- Upgrade to Dialogue Partner (1995): In 1995, India’s status was elevated to a Dialogue Partner, facilitating regular Foreign Ministers’ meetings to discuss political, economic, and strategic issues.
- Summit-Level Partnership (2002): Relations advanced in 2002 with the initiation of Summit-level meetings, creating a platform for comprehensive discussions on regional trade, security, and connectivity.
- Strategic Partnership (2012): At the Commemorative Summit marking 20 years of partnership, the relationship was upgraded to a Strategic Partnership, underscoring the significance of maritime cooperation for regional security and economic stability.
- Comprehensive Strategic Partnership (2022): Celebrating 30 years of ties, 2022 was declared the Year of India-ASEAN Friendship, culminating in the elevation to a Comprehensive Strategic Partnership at the 19th ASEAN-India Summit. This phase focuses on trade, technology, security, and climate resilience.
Key Areas of Cooperation
- Connectivity Enhancement: India emphasizes improving physical, digital, and people-to-people connectivity with ASEAN through infrastructure projects like the India-Myanmar-Thailand Trilateral Highway and digital partnerships, while fostering business ties for smoother trade and investments.
- Strengthening ASEAN: India actively supports ASEAN by participating in forums like the East Asia Summit (EAS) and ASEAN Regional Forum (ARF), reinforcing regional growth and stability.
- Maritime Cooperation: Under the Comprehensive Strategic Partnership, India and ASEAN collaborate in maritime security initiatives, including joint naval exercises and participation in the Expanded ASEAN Maritime Forum (EAMF), promoting peaceful navigation and regional security.
- Geopolitical Cooperation:
- Multi-level Interaction:
- Apex Engagement: Annual summits, such as the ASEAN-India Summit, enable high-level discussions.
- Ministerial Meetings: Platforms like the ASEAN-India Foreign Ministers Meeting (AIFMM) facilitate diplomatic dialogue.
- Senior-Level Engagements: Mechanisms like the ASEAN-India Senior Officials Meeting (AISOM) ensure continuous dialogue on emerging issues.
- Participation in ASEAN-Led Platforms: India contributes actively to ASEAN frameworks such as the ASEAN Defence Ministers Meeting Plus (ADMM+) and ARF, focusing on peace, security, and economic cooperation.
- Geo-Strategic Cooperation
- Comprehensive Strategic Partnership: India and ASEAN’s partnership emphasizes maritime cooperation and regional security through joint initiatives like anti-piracy operations.
- Joint Initiatives: Collaborative projects are funded through mechanisms such as the ASEAN-India Cooperation Fund and ASEAN-India Science and Technology Development Fund, promoting scientific research and capacity building.
- Geo-Economic Cooperation
- Trade Relations: ASEAN is India’s fourth-largest trading partner, with bilateral trade crossing USD 70 billion. India signed an FTA in goods in 2009, later expanding it in 2014 to include services and investments.
- Commodities Trade: Trade between India and ASEAN reached USD 110.39 billion in 2021-2022. India’s exports stood at USD 42.327 billion, with imports at USD 68.07 billion, marking the first time bilateral trade exceeded USD 100 billion.
- Consultation Mechanisms: Platforms such as the ASEAN Economic Ministers-India Consultations (AEM + India) and the ASEAN-India Business Council (AIBC) promote economic cooperation by addressing trade and investment challenges.
- Investment Initiatives: Cumulative FDI inflows from ASEAN to India between 2000-2019 reached USD 117.88 billion, primarily driven by Singapore, highlighting its crucial role in bilateral economic relations.
- Connectivity Cooperation
- Infrastructure Projects: Initiatives like the India-Myanmar-Thailand Trilateral Highway and Kaladan Multimodal Project aim to enhance connectivity between India and ASEAN, improving access to Northeast India and trade routes.
- Cultural and Social Cooperation
- Educational Exchanges: Scholarships and exchange programs for ASEAN students at Indian institutions promote people-to-people ties, fostering long-term bonds.
- Capacity Building: India supports ASEAN through capacity-building initiatives such as the ASEAN-India Youth Summit and Women Scientists Conclave, encouraging collaboration in science, technology, and social development.
Challenges in India-ASEAN Relations
- Geopolitical Concerns: Balancing between the US-China conflict and maintaining strong ASEAN ties is a complex challenge. India’s involvement in the Quad raises concerns about its geopolitical position in the Indo-Pacific.
- Geostrategic Challenges: Territorial disputes, especially in the South China Sea, pose challenges for India’s engagement with ASEAN, requiring careful navigation to maintain stability without escalating tensions.
- Economic Concerns:
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- RCEP Exit: India’s withdrawal from the Regional Comprehensive Economic Partnership (RCEP) disappointed ASEAN members, who expected stronger economic participation.
- Trade Imbalances: India’s trade deficit with ASEAN is a concern, compounded by China’s economic dominance in the region and non-tariff barriers.
- Slow Progress on Connectivity Projects: While the India-Myanmar-Thailand Trilateral Highway is underway, it lags behind China’s Belt and Road Initiative, which has gained traction in some ASEAN countries.
- Internal Divisions within ASEAN: Differences in responses to regional issues, such as the Myanmar military coup, complicate India’s engagement efforts and hinder collective action.
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Way Forward
- Address Geopolitical Concerns: India must reaffirm support for ASEAN’s central role in regional security, strengthening defense ties to build trust and solidify partnerships.
- Focus on Emerging Areas: Expanding collaboration in sectors like digitalization, healthcare, space technology, and advanced manufacturing will enhance economic and technological ties.
- Semiconductor Diplomacy: India should deepen its semiconductor diplomacy with ASEAN nations, leveraging the growing global demand for semiconductors to build new economic partnerships.
- Accelerate Connectivity Projects: Fast-tracking projects like the India-Myanmar-Thailand Trilateral Highway and Kaladan Multimodal Project will enhance trade and connectivity, especially with Northeast India.
- Enhanced Trade Agreements: India should work towards expanding the ASEAN-India Free Trade Agreement, addressing trade imbalances, and reducing non-tariff barriers to strengthen economic relations.