What is ASEAN? ASEAN-India Relations

• The 22^nd ASEAN-India Summit was held virtually under Malaysia’s chairmanship, as part of the larger 47th ASEAN Summit in Kuala Lumpur.
• Timor-Leste formally joined ASEAN as the 11^th member and participated in the summit for the first time as a full member.

About Association of Southeast Asian Nations (ASEAN)

• Association of Southeast Asian Nations (ASEAN) is a regional group that promotes economic, political, and security cooperation.
• It was established in 1967 in Bangkok with the signing of the ASEAN Declaration (Bangkok Declaration). Its secretariat is in Jakarta, Indonesia.
• 11 member countries: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam, and Timor-Leste (a newly joined member).
  • India is not a member of ASEAN.
• ASEAN led the creation of the Regional Comprehensive Economic Partnership (RCEP), now the world’s largest free trade agreement.
• ASEAN is one of India’s largest trading partners and collectively accounts for approximately 11% of India’s global trade.

Significance of ASEAN for India

• Counterbalancing China: India seeks to strengthen ties with ASEAN to counter Chinese influence. At the 2023 ASEAN-India summit, PM Modi emphasised collaboration for Indo-Pacific peace and stability.
• Economic Partnerships: ASEAN is India’s fourth-largest trading partner, with around $81 billion in 2022-23 trade bolstered by the 2010 India-ASEAN Free Trade Agreement.
• Geopolitical Strategy: Strengthening ties with ASEAN aligns with India’s “Act East Policy” for enhanced Asia-Pacific engagement.
• Cultural and Historical Links: India shares strong cultural ties with ASEAN, particularly through Buddhism. The “Buddhist Circuit” tourism initiative promotes religious tourism and cultural understanding.
• Regional Security Cooperation: ASEAN is important for addressing security issues like terrorism and maritime safety, e.g., the 2020 ASEAN Defense Ministers’ Meeting Plus (ADMM-Plus).
• Enhancing Soft Power: Initiatives like the “ASEAN-India Youth Summit” help India boost its soft power through cultural exchanges.
• Infrastructure Projects: Key initiatives like the India-Myanmar-Thailand Trilateral Highway and the Kaladan Multimodal Project aim to strengthen transport links between India and ASEAN.

Challenges in India-ASEAN relations

• Geopolitical Concerns: The escalating US-China conflict poses significant geopolitical challenges for relations. For example, India’s membership in the revived Quad has raised apprehension among ASEAN nations.
• Geostrategic Challenges: Territorial disputes involving ASEAN member states, such as the South China Sea dispute, complicate India’s engagement as it seeks to promote regional stability.
• Walking out of Regional Comprehensive Economic Partnership (RCEP): India’s last-minute withdrawal from RCEP negotiations has disappointed ASEAN members regarding trade liberalisation.
• Growing Trade Imbalances with ASEAN, primarily because China remains the largest trading partner for these countries. Implementation issues, customs delays, and non-tariff barriers also hinder trade.
• Slow Implementation of Connectivity Projects: Progress on the India-Myanmar-Thailand Trilateral Highway has lagged behind China’s Belt and Road Initiative.
• Trade and Investment Barriers: Non-tariff barriers, including complex customs processes and inconsistent regulations, obstruct smoother trade and investment between India and ASEAN.
• Internal Divisions within ASEAN to the military coup in Myanmar have led to divisions among ASEAN members, making it difficult for India to align its policies for regional stability and democratic restoration.

Strengthening India-ASEAN relations

• Addressing Geopolitical Concerns: Reaffirm India’s commitment to ASEAN in the regional security framework to strengthen defence and security ties.
• Focusing on Emerging Areas: Enhance cooperation in digitalisation, health, space technology, and advanced manufacturing to foster innovation and connectivity.
• Expanding Semiconductor Diplomacy: Extend semiconductor collaboration with ASEAN countries to build a regional ecosystem.
• Accelerated Infrastructure Development: Prioritize key infrastructure projects to enhance trade and strengthen people-to-people connections.
• Recalibrating AIFTA to address trade imbalances, focusing on balanced tariff reductions in pharmaceuticals, textiles, IT Services, etc.
• Enhancing Infrastructure Connectivity by proposing a “Connectivity Master Plan” aligned with ASEAN’s 2025 goals, including potential digital initiatives to boost trade by 20-30%.
• Boosting Manufacturing Competitiveness: Extend the Production Linked Incentive (PLI) scheme to more sectors and initiate joint manufacturing ventures, such as an electronics hub with Vietnam.
• Enhancing Energy Cooperation: Propose an “ASEAN-India Energy Partnership” focusing on renewable energy and technology collaboration, including joint research on green hydrogen.
• Strengthening Strategic and Defence Cooperation by offering capacity-building assistance and initiating joint defence production with countries like Singapore and Indonesia.
• Aligning on Climate Change: Establish an “ASEAN-India Green Partnership” to focus on climate change mitigation and renewable energy initiatives, enhancing India’s role in environmental cooperation.