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The recent visit of PM Narendra Modi to Brunei and Singapore aims at giving fresh impetus to India-ASEAN relations. India is making concerted attempts to reboot one of India’s most valuable partnerships in Asia and the world. Earlier this year, Delhi had hosted the prime ministers of Malaysia and Vietnam and EAM S. Jaishankar had met several foreign ministers in the region and received them in Delhi. These engagements have once again demonstrated the extraordinary goodwill for Delhi in the ASEAN region and the high expectations from India.
What has been the history of India-ASEAN countries relations?
India’s ties with Southeast Asia stretch back more than two millennia. This relation is forged in peace and friendship, religion and culture, art and commerce, language and literature.
| Initial Years of engagement | India-ASEAN countries formal engagement began in 1992 as a ‘Sectoral Dialogue Partner‘ (Secretary level interaction). The partnership was instituted as a ‘Dialogue Partner‘ in 1995, which entailed interaction at the Foreign Minister’s level. The partnership was elevated to the summit level in 2002. |
| Era of Strategic Partnership | At the commemorative Summit meeting celebrating 20 year relationship between India and ASEAN, the partnership was elevated to a strategic partnership. During the 25-year Commemorative Summit in New Delhi (January 2018), India and ASEAN agreed that our Strategic Partnership will be focused on building cooperation in the maritime domain. |
| Comprehensive Strategic Partnership | The year 2022 marks the 30 years of ASEAN-India relations, and the year has been designated as the year of India-ASEAN countries friendship. At the 19th ASEAN-India Summit to commemorate 30th anniversary of ASEAN-India Dialogue Relations, the Strategic Partnership was elevated to the Comprehensive Strategic Partnership. On this occasion, ‘Joint Statement on ASEAN-India Comprehensive Strategic Partnership‘ was released. |
What have been the areas of Cooperation between India and ASEAN Countries?
India’s engagement with the ASEAN has been driven by three goals- (i) enhancing connectivity between India and ASEAN (i.e. physical, digital, people-to-people, business etc.), (ii) strengthening the ASEAN organization and; (iii) expanding practical cooperation in the maritime domain.
Geopolitical Cooperation
1. India’s engagement with ASEAN is a multi-level interaction process.
| Apex Interaction | Annual summits between India and ASEAN, like ASEAN-India Summit. |
| Support Meetings | Foreign Minister level meetings like ASEAN-India Foreign Ministers Meeting (AIFMM). |
| Senior Level Meetings | There is regular interaction between senior level officials like AISOM which is prior to the AIFMM and the AI summit. |
2. India engages in the ‘ASEAN-led frameworks‘- multilateral platforms chaired by ASEAN. India regularly participates in the meetings of the East Asia Summit (EAS), ASEAN Regional Forum (ARF), ASEAN Defence Ministers Meeting+ (ADMM+) and the Expanded ASEAN Maritime Forum (EAMF) meetings and its supporting processes.
Geostrategic cooperation
1. Comprehensive Strategic Partnership- The relationship has evolved into a Comprehensive Strategic Partnership, with special focus on maritime cooperation.
2. Joint Initiatives- India and ASEAN have established mechanisms like the ASEAN-India Cooperation Fund and the ASEAN-India Science and Technology Development Fund to support various collaborative projects.
Geo-Economic Cooperation
1. Trade Relations- ASEAN is India’s fourth-largest trading partner, with bilateral trade reaching around USD 70 billion. India recently signed a Free Trade Agreement (FTA) in goods in 2009 and expanded this agreement to include services and investments in 2014.
2. Commodities Trade- Commodity trade between India and ASEAN region has reached USD 110.39 billion in April 2021-March 2022, with exports to ASEAN worth USD 42.327 billion and imports from ASEAN worth USD 68.07 billion. This is for the first time bilateral trade with ASEAN has crossed 100 billion.
3. Consultation Mechanisms- The ASEAN Economic Ministers-India Consultations (AEM + India) and the ASEAN-India Business Council (AIBC) promote Comprehensive Economic Cooperation between India and the ASEAN region.
4. Investment Initiatives- Between 2000-2019, cumulative FDIs from ASEAN to India were $117.88 billion. However, these are mainly accounted for by Singaporean investments in India ($115 billion).
Connectivity Cooperation
1. Infrastructure Projects- India-ASEAN relations are characterised by key initiatives, which include the India-Myanmar-Thailand Trilateral Highway and the Kaladan Multimodal Project. These aim to improve transport links between India and ASEAN countries, particularly enhancing access to Northeast India.
Cultural and Social Cooperation
1. Educational Exchanges- Programs such as scholarships for ASEAN students in Indian institutions and various cultural exchange strengthen people-to-people ties.
2. Capacity Building- Collaborative efforts between India and ASEAN includes capacity building in various sectors. This promotes youth and women’s participation in social development programs.
| Read More- India and East Asia Relations |
What are the Challenges in India-ASEAN relations?
1. Geopolitical concerns- The complex regional environment with the sharpening of US-China conflict and Delhi’s own deepening troubles with Beijing, is a major geopolitical concern for the relations. Further, India’s membership of the newly revived Quad has also raised concerns in the region.
2. Geostrategic Challenges- The embroilment of ASEAN member states in territorial disputes like South China Sea Dispute, complicates India’s engagement with ASEAN, as India seeks to navigate these disputes while promoting stability in the region.
3. Economic Concerns-
a. Walking out of RCEP- Delhi’s decision to walk out of the regional negotiations on trade liberalisation (RCEP) at the eleventh hour has created a sense of economic disappointment for ASEAN members.
b. Growing Trade Imbalances- India faces a growing trade deficit with ASEAN, with China being the largest trading partner for ASEAN countries. There has been sluggish progress in India-ASEAN trade due to issues related to implementation, customs procedures, and non-tariff barriers.
c. Slow Implementation of Connectivity Projects- There has been slow progress on the India-Myanmar-Thailand Trilateral Highway projects, when contrasted with the China’s Belt and Road Initiative, which has gained traction among some ASEAN nations.
d. Trade and Investment Barriers- Non-tariff barriers, such as complex customs procedures and inconsistent regulations, hinder smoother trade and investment flows between India and ASEAN countries.
Internal Divisions within ASEAN
Differing Responses to Myanmar- The military coup in Myanmar has led to varied reactions among ASEAN members, and has complicated collective action. This division makes it difficult for India to align its policies with ASEAN regarding the regional stability and democratic restoration in Myanmar.
What should be the Way Forward?
1. Redressal of Geopolitical concerns- India should reassert its stand squarely behind ASEAN in the regional security architecture. Delhi’s efforts at reassuring ASEAN have shown a measure of success, with the region opening up to more defence and security cooperation with India.
2. Focus on emerging areas- India should also focus on enhancing cooperation in new areas such as digitalisation, health, space technology and advanced manufacturing to strengthen regional ties.
3. Semiconductor Diplomacy- India’s ‘semiconductor diplomacy‘ with Malaysia and Singapore, both of which have significant capabilities in semiconductor production, should be extended with other ASEAN member countries.
4. Accelerated Infrastructure Development- Accelerating key connectivity projects, such as the India-Myanmar-Thailand Trilateral Highway and the Kaladan Multimodal Project, will further enhance trade and people-to-people connections.
5. Enhanced Trade Agreements- Expansion of the scope and effectiveness of the ASEAN-India Free Trade Agreement (FTA) can help in addressing trade imbalances and reduction of non-tariff barriers.
| Read More- The Indian Express UPSC Syllabus- GS 2 International relations- India and its neighbourhood relations |
