UPSC Editorials : India-ASEAN Relations

*General Studies-2; Topic: Important International institutions, agencies and fora- their structure, mandate.*

Introduction

• India’s relationship with ASEAN (Association of Southeast Asian Nations) has evolved significantly from the Cold War era’s limited engagement to a dynamic strategic partnership today.

• ASEAN, which started in 1967 with five nations has expanded to 10 members and emerged as a key regional economic and security grouping.

Key Drivers of India-ASEAN Relations:

• End of Cold War & India’s Economic Liberalization (1991)

• Look East Policy (1991) → Act East Policy (2014)

• China’s growing influence in Southeast Asia

• ASEAN’s economic growth & regional integration

• Strategic maritime security interests in the Indo-Pacific

• As India aims to become a $5–7 trillion economy, ASEAN plays a crucial role in trade, connectivity, and security cooperation. However, geopolitical challenges, trade imbalances, and regional conflicts continue to shape the future of India-ASEAN ties.

Historical Context: From Cold War Distance to Strategic Cooperation

• Limited Engagement During Cold War (1947–1991)

• India’s non-alignment policy kept it neutral, whereas some ASEAN nations aligned with the United States. ASEAN was wary of India’s socialist economic policies and its close ties with the Soviet Union. India initially prioritized relations with SAARC (South Asian Association for Regional Cooperation) over ASEAN.

• India’s non-alignment policy kept it neutral, whereas some ASEAN nations aligned with the United States.

• ASEAN was wary of India’s socialist economic policies and its close ties with the Soviet Union.

• India initially prioritized relations with SAARC (South Asian Association for Regional Cooperation) over ASEAN.

• Post-Cold War Shift and Look East Policy (1991)

• Geopolitical changes (Soviet collapse, economic rise of ASEAN, China’s expansion) led to India’s Look East Policy (LEP) under P.V. Narasimha Rao. India became a Sectoral Dialogue Partner of ASEAN in 1992 and a Full Dialogue Partner in 1996. The 2003 ASEAN-India Summit institutionalized regular high-level interactions.

• Geopolitical changes (Soviet collapse, economic rise of ASEAN, China’s expansion) led to India’s Look East Policy (LEP) under P.V. Narasimha Rao.

• India became a Sectoral Dialogue Partner of ASEAN in 1992 and a Full Dialogue Partner in 1996.

• The 2003 ASEAN-India Summit institutionalized regular high-level interactions.

• Act East Policy (AEP) – 2014 Onwards

• PM Narendra Modi renamed LEP to Act East Policy (AEP) in 2014, emphasizing security and strategic cooperation beyond economic ties. AEP aligns with the Indo-Pacific strategy and India’s BIMSTEC priorities, expanding influence beyond South Asia. 2018 ASEAN-India Commemorative Summit in Delhi reinforced India’s commitment to ASEAN.

• PM Narendra Modi renamed LEP to Act East Policy (AEP) in 2014, emphasizing security and strategic cooperation beyond economic ties.

• AEP aligns with the Indo-Pacific strategy and India’s BIMSTEC priorities, expanding influence beyond South Asia.

• 2018 ASEAN-India Commemorative Summit in Delhi reinforced India’s commitment to ASEAN.

Economic Cooperation: Trade and Investment

• ASEAN as India’s Key Trading Partner

• India-ASEAN Free Trade Agreement (FTA) operational since 2010). ASEAN is India’s 4th largest trading partner (after the US, EU, and China). Bilateral trade reached ~$110 billion in 2022, but India still lags behind China’s $700 billion trade with ASEAN.

• India-ASEAN Free Trade Agreement (FTA) operational since 2010).

• ASEAN is India’s 4th largest trading partner (after the US, EU, and China).

• Bilateral trade reached ~$110 billion in 2022, but India still lags behind China’s $700 billion trade with ASEAN.

• Challenges in Economic Engagement

• Non-Tariff Barriers (NTBs) imposed by ASEAN nations restrict Indian exports. India’s trade deficit with ASEAN remains high, with imports outpacing exports. Limited connectivity and slow implementation of economic projects hinder trade efficiency.

• Non-Tariff Barriers (NTBs) imposed by ASEAN nations restrict Indian exports.

• India’s trade deficit with ASEAN remains high, with imports outpacing exports.

• Limited connectivity and slow implementation of economic projects hinder trade efficiency.

• India’s Withdrawal from RCEP: A Setback?

• India withdrew from the Regional Comprehensive Economic Partnership (RCEP) in 2019 due to: China’s dominance and potential for cheap goods dumping. Lack of safeguards for domestic industries, including MSMEs and agriculture. ASEAN sees this as a lost opportunity for India, but India argues that bilateral FTAs can still drive trade growth.

• China’s dominance and potential for cheap goods dumping.

• Lack of safeguards for domestic industries, including MSMEs and agriculture.

• ASEAN sees this as a lost opportunity for India, but India argues that bilateral FTAs can still drive trade growth.

• Investment & Infrastructure Cooperation

• India’s investment in ASEAN focuses on IT, infrastructure, and manufacturing. ASEAN’s investment in India supports urban infrastructure, telecom, and power sectors. $1 billion Lines of Credit for ASEAN connectivity projects aims to strengthen regional ties.

• India’s investment in ASEAN focuses on IT, infrastructure, and manufacturing.

• ASEAN’s investment in India supports urban infrastructure, telecom, and power sectors.

• $1 billion Lines of Credit for ASEAN connectivity projects aims to strengthen regional ties.

Connectivity and Regional Projects

Key Connectivity Projects

• Mekong-Ganga Cooperation (MGC) Initiative (India, Cambodia, Laos, Myanmar, Thailand, Vietnam) Focus: Tourism, culture, education, transport, and communication. Aim: Strengthen people-to-people and economic connectivity.

• Focus: Tourism, culture, education, transport, and communication.

• Aim: Strengthen people-to-people and economic connectivity.

• Kaladan Multimodal Transit Transport Project (India-Myanmar) $500 million project connecting Indian ports → Sittwe (Myanmar) → Mizoram. Facilitates trade from India’s Northeast to Myanmar. Delays due to Myanmar’s ethnic conflicts.

• $500 million project connecting Indian ports → Sittwe (Myanmar) → Mizoram.

• Facilitates trade from India’s Northeast to Myanmar.

• Delays due to Myanmar’s ethnic conflicts.

• India-Myanmar-Thailand Trilateral Highway 1,360 km highway to improve land connectivity. Security concerns in Myanmar have slowed progress.

• 1,360 km highway to improve land connectivity.

• Security concerns in Myanmar have slowed progress.

Challenges in Connectivity

• Myanmar’s ongoing civil war hampers project implementation.

• Delays in infrastructure funding and bureaucratic hurdles slow progress.

• Maritime connectivity remains underdeveloped, limiting India’s Indo-Pacific ambitions.

Security and Strategic Cooperation

• Rising India-ASEAN Security Ties

• China’s military expansion in the South China Sea (SCS) has led ASEAN to strengthen security partnerships with India. India’s strategic ties with Vietnam and the Philippines have grown significantly, with BrahMos missile exports and defense training programs. India-Singapore joint military exercises and naval deployments in the SCS signal India’s commitment to regional stability.

• China’s military expansion in the South China Sea (SCS) has led ASEAN to strengthen security partnerships with India.

• India’s strategic ties with Vietnam and the Philippines have grown significantly, with BrahMos missile exports and defense training programs.

• India-Singapore joint military exercises and naval deployments in the SCS signal India’s commitment to regional stability.

• Countering China’s Influence

• China’s Belt and Road Initiative (BRI) has deepened ASEAN’s dependence on Beijing. ASEAN remains divided on the South China Sea issue, with Cambodia and Laos leaning toward China, while Vietnam, Indonesia, and the Philippines push for a tougher stance. India, as a Quad member, provides ASEAN with a strategic alternative to China.

• China’s Belt and Road Initiative (BRI) has deepened ASEAN’s dependence on Beijing.

• ASEAN remains divided on the South China Sea issue, with Cambodia and Laos leaning toward China, while Vietnam, Indonesia, and the Philippines push for a tougher stance.

• India, as a Quad member, provides ASEAN with a strategic alternative to China.

Future of India-ASEAN Relations

• Opportunities for Enhanced Cooperation

• Deeper trade integration via bilateral FTAs with ASEAN members. Improved connectivity through better funding & faster project execution. Increased maritime security cooperation to ensure freedom of navigation in the Indo-Pacific.

• Deeper trade integration via bilateral FTAs with ASEAN members.

• Improved connectivity through better funding & faster project execution.

• Increased maritime security cooperation to ensure freedom of navigation in the Indo-Pacific.

• Challenges to Overcome

• Political instability in Myanmar and Bangladesh may impact India’s regional influence. ASEAN’s divided stance on China limits cohesive engagement with India. India must expand trade beyond traditional sectors like IT and pharmaceuticals.

• Political instability in Myanmar and Bangladesh may impact India’s regional influence.

• ASEAN’s divided stance on China limits cohesive engagement with India.

• India must expand trade beyond traditional sectors like IT and pharmaceuticals.

• Strategic Imperatives for India Greater integration into ASEAN’s economic framework to compete with China. Accelerating stalled infrastructure projects to improve trade connectivity. Balancing ASEAN’s neutrality with India’s Indo-Pacific strategic interests. Leveraging technology, education, and cultural diplomacy for deeper engagement.

• Greater integration into ASEAN’s economic framework to compete with China.

• Accelerating stalled infrastructure projects to improve trade connectivity.

• Balancing ASEAN’s neutrality with India’s Indo-Pacific strategic interests.

• Leveraging technology, education, and cultural diplomacy for deeper engagement.

Conclusion

• As India aims to become a $5–7 trillion economy, ASEAN will be a critical partner for regional economic growth, security cooperation, and geopolitical balance.

• A proactive policy approach, infrastructure investment, and stronger economic integration will be key to unlocking the full potential of India-ASEAN relations in the coming decade.

Practice Question:

ASEAN has emerged as a key regional grouping in Southeast Asia. Analyze India’s approach towards ASEAN and its implications for regional geopolitics. (250 words)