India-ASEAN ties, rooted in economic, cultural, and strategic convergence, are vital for regional stability and prosperity. Tackling trade imbalances and connectivity delays, while enhancing defence, digital, and energy cooperation, will deepen this Comprehensive Strategic Partnership, counterbalance China’s influence and advance India’s Act East Policy for an inclusive Indo-Pacific.
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Following the US's imposition of a 50% tariff on exports, India strengthening its Comprehensive Strategic Partnership with ASEAN, leveraging the ASEAN-India Trade in Goods Agreement, to diversify export markets and mitigate economic impact.
The Association of Southeast Asian Nations (ASEAN) is a 10-state regional organization in Southeast Asia.
Origin: Founded in Bangkok in 1967, to promote economic, social, cultural development, and regional peace and stability.
Motto: "One Vision, One Identity, One Community"
Decision Method: Unanimous decisions, all ten member states must agree for a decision to pass.
Headquarters: Jakarta, Indonesia.
Evolution of India-ASEAN Relations
1992: India started formal engagement with ASEAN, initial focus on economic cooperation, marked the start of India's "Look East Policy."
2002: Relationship upgraded to annual summits between Indian and ASEAN leaders.
2009: ASEAN-India Trade in Goods Agreement (AITIGA), a free Trade Agreement between India and the ten member states of ASEAN.
2012: Both sides elevated ties to a Strategic Partnership.
2014: India announced the "Act East Policy".
2018: Adopted the Delhi Declaration, identifying maritime cooperation as a key area. All ten ASEAN Heads of States/Governments attended India's 69th Republic Day Parade as Guests of Honour.
2022: ASEAN and India celebrated the 30th anniversary of their relations by elevating the Strategic Partnership to a Comprehensive Strategic Partnership.
August 2025: Officials are meeting to review the ASEAN-India Trade in Goods Agreement (AITIGA).
Economic Powerhouse and Gateway: ASEAN offers access to a market of over 650 million people with a combined GDP of USD 3.2 trillion.
Strategic Counterbalance: ASEAN serves as a strategic partner in the context of rising geopolitical tensions, particularly concerning China.
Connectivity Catalyst: ASEAN is central to India's vision of enhanced regional connectivity. Projects like the India-Myanmar-Thailand Trilateral Highway and the Kaladan Multi-Modal Transit Transport Project aim to integrate India with Southeast Asia, and promote access to Northeast India.
Cultural Confluence: Deep historical and cultural links, along with a shared heritage, provide a strong foundation for soft power diplomacy, backed by initiatives like the ASEAN-India Artists' Camp and Music Festival and the ASEAN-India Network of Universities.
Counterbalancing China's Influence: Strengthening ties with ASEAN provides India opportunities to counterbalance China's growing presence and influence in the region.
Ensuring Maritime Security: Engage in maritime security cooperation, including joint naval exercises, addressing piracy, and supporting freedom of navigation in the South China Sea. India and the Philippines recently conducted their first-ever joint naval exercises in the South China Sea.
Technological Synergy: ASEAN's rapidly digitalizing economies create opportunities for collaboration with India's IT sector and start-up ecosystem, promoting innovation and joint development in areas like AI, fintech, and cybersecurity.
Supply Chain Resilience: Partner in building resilient supply chains. During the pandemic when countries like Indonesia, Vietnam, Thailand received oxygen and supplies from India, while India sourced medical supplies from Singapore and Thailand.
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The Mekong-Ganga Cooperation (MGC) is a regional initiative formed in 2000 by India and five Southeast Asian nations (Cambodia, Laos, Myanmar, Thailand, and Vietnam) to promote collaboration in areas like tourism, culture, education, and transportation, with a focus on enhancing connectivity and building on shared historical and civilizational ties. |
Strategic Balance in the Indo-Pacific: India's role as a balancer in the Indo-Pacific region, supporting ASEAN's vision of inclusivity and sustainable development.
Counterweight to China's Dominance: India as a potential counter to China's increasing influence and trade dominance in the region. Strengthening ties with India provides ASEAN countries with alternative economic and security partnerships
Energy Security: Energy-rich South China Sea, with countries like Vietnam, Malaysia, and Myanmar, serves as a potential hydrocarbon source for India's growing energy needs.
Development Partnerships and Capacity Building: India supports ASEAN, particularly the CLMV (Cambodia, Lao PDR, Myanmar, Vietnam) countries, through various funds and projects focus on capacity building, human resource development, and infrastructure.
Technological and Digital Collaboration: Indian's expertise in IT and digital economy offers potential for cooperation with ASEAN's digitalizing economies, collaboration in areas like fintech, e-commerce, AI governance, and cybersecurity.
Strong People-to-People Ties: Historical and cultural linkages, including the spread of Buddhism and Hinduism, strong people-to-people connections, cultivating goodwill and mutual understanding.
Look East Policy (Early 1990s): Strengthen economic and strategic ties with Southeast Asian nations, driven by economic liberalization and the desire to enhance its global standing and counterbalance China.
Act East Policy (2014 onwards): Prime Minister Narendra Modi pronounced this policy, highlighted 3 Cs: Connectivity, Commerce, and Culture, for deeper integration with ASEAN members.
ASEAN Centrality: Place ASEAN's centrality in its regional approach, recognizing it as the fulcrum of regional stability. India places ASEAN at the core of Indo-Pacific vision of Security and Growth for All in the Region (SAGAR).
Active Participation in ASEAN-led Forums: Participates in key regional forums like the East Asia Summit (EAS), ASEAN Regional Forum (ARF), ASEAN Defence Ministers' Meeting Plus (ADMM+), and Expanded ASEAN Maritime Forum (EAMF), to promote a rules-based international order.
Trade Imbalance: India's exports to ASEAN countries grew at an average annual rate of 1.7% to $39 billion by 2024-25, while imports grew at 7.5% annually to $84.2 billion, resulted trade deficit of $45.2 billion in 2024-25.
ASEAN-India Free Trade Agreement (AIFTA) Issues:
Infrastructure Connectivity Delays: Projects, such as the India-Myanmar-Thailand Trilateral Highway and the Kaladan Multi-Modal Transit Transport Project, have faced delays, due to instability in Myanmar.
Manufacturing Competitiveness Gap: Many ASEAN countries, especially Vietnam and Thailand, have more comprehensive manufacturing sectors with higher productivity than India in areas like electronics and machinery.
Geopolitical Balancing: China's economic and security footprint in Southeast Asia problematize India-ASEAN relations. Some members recognise India's role in the South China Sea, but others remain cautious in taking side. India's exclusion from the Regional Comprehensive Economic Partnership (RCEP) in 2019 reflects this complex dynamic.
Services Trade Barriers: Despite India's comparative advantage in services (especially IT), barriers like restrictions on professional movement, lack of mutual recognition agreements for qualifications, and data localization requirements in some ASEAN countries limit India's ability to compensate its goods trade deficit.
Lack of Alignment on South China Sea: India's consistent support for peaceful resolution based on the United Nations Convention on the Law of the Sea (UNCLOS). However, divergent approaches within ASEAN to China's South China Sea claims, exemplified by Beijing's rejection of the Philippines' 2016 Arbitration ruling, complicate a unified stance.
Way Forward for Strengthening India-ASEAN RelationsRenegotiate ASEAN-India Free Trade Agreement (AIFTA): Negotiating more balanced tariff reductions, especially in sectors where India holds a competitive advantage (e.g., pharmaceuticals, textiles, IT services). Addressing non-tariff barriers and strengthening rules of origin are crucial.
Enhance Infrastructure Connectivity: Accelerate the connectivity projects like the India-Myanmar-Thailand Trilateral Highway and explore its extension to Cambodia, Laos, and Vietnam.
Boost Manufacturing Competitiveness: Expand Make in India, Production Linked Incentive (PLI) scheme to cover more industries to boost ASEAN trade.
Deepen Strategic and Defense Cooperation: Increase capacity building assistance to ASEAN countries in maritime awareness, anti-piracy operations, and humanitarian assistance/disaster relief (HADR).
Strengthen Energy Cooperation and Sustainability: Establish "ASEAN-India Green Partnership" to strengthen energy security, shift to clean energy, and promote technology exchange through collaborative research in renewable energy, green hydrogen, and climate-resilient farming.
Leverage Digital Economy and Innovation: Collaborate on emerging technologies like AI governance, cybersecurity, fintech, and digital public goods. Expand initiatives like the Aadhar enabled UPI, to expand digital economy.
Strengthen Institutional Mechanisms: Strengthen the effectiveness of dialogue mechanisms such as the Delhi Dialogue and the ASEAN-India Centre (AIC) to ensure timely discussions and implementation of cooperation initiatives.
Cooperation on Global Challenges: Collaborate on issues such as climate change adaptation, disaster management, and public health, including joint research on vaccines and medical technologies, learning from lessons during the COVID-19 pandemic.
To strengthen the India-ASEAN Comprehensive Strategic Partnership, both sides must accelerate the AITIGA review, enhance trade and connectivity, deepen technological and strategic cooperation, and promote cultural and energy partnerships like the proposed ASEAN-India Green Partnership.
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For Mains: INDIA-CHINA RELATIONS l INDIAN-PHILIPPINES RELATIONS l INDIA SINGAPORE RELATIONS l INDIA-MYANMAR RELATIONS |
Source: The Hindu
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PRACTICE QUESTION Q. "India's 'Act East Policy' is not merely an extension of the 'Look East Policy' but a strategic re-orientation." Critically analyze. 250 words |
ASEAN (Association of Southeast Asian Nations) is a regional group of 10 Southeast Asian states focused on promoting economic and security cooperation.
The AITIGA is a Free Trade Agreement (FTA) between India and ASEAN members, signed in 2009, to promote the free flow of goods and enhance economic integration.
The Quad is an informal strategic dialogue among four maritime democracies: Australia, India, Japan, and the United States.
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