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.

• 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.

• 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.

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.

• 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.

• 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.

• 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.

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.
• 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.
• India-Myanmar-Thailand Trilateral Highway
  • 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.

• 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.

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.

• 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.

• 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.

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)