Indian PM Narendra Modi recently visited Jakarta to attend the ASEAN summit on 7 September, just ahead of the G20 Summit hosted by New Delhi from 8-10 September.
While participating in the 20th ASEAN-India and 18th East Asia summits during his visit, the Indian PM highlighted the significance of India-ASEAN ties and addressed ASEAN as the “Central pillar of India’s Act East Policy.”
As the Indo-Pacific region acquires renewed importance in the global political landscape, India’s ties with the ten-member grouping have also acquired a new dimension. In this light, we look at the importance of ASEAN for India.
What is ASEAN?
Considered one of the most influential groupings in the region, ASEAN is a regional bloc with Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam as its members.
The grouping was established on 8 August 1967 in Bangkok, Thailand, upon adopting the Bangkok Declaration to promote political and economic cooperation and regional stability.
ASEAN-India Ties
Ties between India and ASEAN have witnessed immense improvement since their inception, and they continue to grow owing to political, social, economic, defence, and cultural considerations.
As growing political tensions in the Indo-Pacific present new uncertainties and the rise of China brings new challenges to the world, India’s engagement with ASEAN becomes hugely significant.
Had a very short but fruitful Indonesia visit, where I met ASEAN and other leaders. I thank President @jokowi, the Indonesian Government and people for their welcome. pic.twitter.com/wY82TMzDvY
— Narendra Modi (@narendramodi) September 7, 2023
Importance of ASEAN to India
Economic Importance
Following the post-Cold War period and India’s economic liberalisation, New Delhi shifted its focus to pushing economic ties with ASEAN.
The two sides registered a bilateral trade of $131.5 billion in 2022-23. In the same year, trade with ASEAN accounted for 11.2% of India’s global trade.
The two sides also signed a Free Trade Agreement (FTA) called the ASEAN-India Trade in Goods Agreement (AITGA) in 2009 to boost trade ties. They established an ASEAN-India Business Council in 2003.
Additionally, ASEAN is India’s fourth-largest trading partner. India exports gems and jewellery, pharmaceuticals, electronic goods, wheat, spices and finished leather to ASEAN and imports vegetable oils, electronic goods, newsprints, natural rubber, pearls and precious stones from ASEAN.
ASEAN is also a vital defence market for India, as is evident by India and the Philippines inking a $375 million Brahmos missile deal and India gifting indigenously built missile corvette INS Kirpan to Vietnam.
The China Aspect, Indo-Pacific
Amid the rising Chinese power globally and increased friction in Sino-India ties, the role of India’s relations with ASEAN becomes further important.
Several ASEAN members, including the Philippines, Malaysia, and Vietnam, have raised objections concerning Chinese claims on the South China Sea.
India can benefit from the dissensions between China and the ASEAN members in this area.
The ASEAN-India Joint Statement on Maritime Cooperation was adopted at the recent summit, echoing the sentiment of upholding international law in the South China Sea.
In this regard, holding the first ASEAN-India Maritime Exercise in the South China Sea in May this year was significant.
ASEAN countries also have a significant role to play since India joined the Quadrilateral Security Dialogue (Quad) along with the US, Australia, and Japan.
Cooperation between India and ASEAN is essential to ensure a free and open Indo-Pacific, the whole raison d’être of Quad.
As the Indian PM recently highlighted, “ASEAN is the focal point of Quad’s vision.”
Act East Policy, Northeast and Myanmar
Taking forward the legacy of the civilisational bonds between India and the Southeast Asian region, India-ASEAN dialogue relations started in 1992 with a sectoral partnership following India’s ‘Look East policy’ of the early 1990s.
These ties were elevated to a full dialogue partnership in 1995, a summit-level partnership in 2002, and a strategic partnership in 2012.
In 2014, India launched its ‘Act East Policy’ to strengthen its linkages with the Southeast Asian region, of which ASEAN forms a major part.
Last year marked the 30th anniversary of the ASEAN-India ties and was celebrated as the ASEAN-India Friendship Year. At the ASEAN-India Summit in Cambodia’s Phnom Penh in the same year, the two sides elevated their relations to a Comprehensive Strategic Partnership.
Additionally, ASEAN countries lie the closest to India’s Northeastern states. With connectivity projects like the India-Myanmar-Thailand Trilateral Highway and Kaladan Multi-Modal Transit Transport Project that pass through the region, ASEAN can help India develop Northeast as a trading hub to Southeast Asia via Myanmar.
India can also benefit from its ties with ASEAN as it navigates its precarious relationship with Myanmar’s military junta while also supporting the restoration of democracy in the country.
Given the volatile situation along the country’s Northeastern borders, the Myanmar question is vital, making it important to smoothen ties with the country from an internal security perspective.
My remarks at the ASEAN-India Summit. https://t.co/OGpzOIKjIf
— Narendra Modi (@narendramodi) September 7, 2023
Multilateralism, Cultural Ties, Climate Change
India has managed to maintain a neutral stance with respect to the Ukraine-Russia conflict. The ASEAN nations have also stayed neutral in the context of the war.
The ASEAN framework highlights the importance of multilateralism, an essential focus of Indian foreign policy.
Both India and the grouping emphasise a policy of non-interference in the affairs of other countries, which has made it easier for them to cooperate.
ASEAN presents an alternative area of engagement for India.
With shared civilisational, cultural heritage and maritime linkages between India and ASEAN, the people-to-people dimension of the ties is also important.
This is visible in the role that the Indian diaspora plays in the ASEAN nations, as seen in Tharman Shanmugaratnam’s election as the President of Singapore.
The areas of climate change, renewable energy, digitalisation, human assistance and disaster relief, and food security are some other areas where India’s ties with ASEAN can be strengthened to benefit both parties.
Way Forward
While India and ASEAN have significant growth potential, the relationship’s progress remains slow.
On the economic front, there is a trade deficit for India, which has spiked by 70% to $43 billion in FY23, and on the political front, there is an overdominance on the part of China.
While several hurdles exist, the two sides should focus on their points of convergence and attempt to strengthen their ties.