Posted in GS 2, Editorial Analysis

India needs to build closer ties with ASEAN for economic, and strategic reasons

 September 9, 2023  Leave a comment
ASEAN

Source: The Hindu – 9/09/2023

Syllabus: GS 2 – Bilateral, Regional and Global Groupings and Agreements involving India and/or affecting India’s interests

Context: The Prime Minister attended the 20th ASEAN-India Summit and the 18th East Asia Summit (EAS) in Jakarta on 7 September 2023.

Content

ASEAN and India Relation:

  • The Association of Southeast Asian Nations, or ASEAN, was established on 8 August 1967 in Bangkok, Thailand, with the signing of the ASEAN Declaration (Bangkok Declaration) by the Founding Fathers of ASEAN: Indonesia, Malaysia, Philippines, Singapore and Thailand.
  • The Association of South-East Asian Nations (ASEAN) comprises Indonesia, Singapore, Philippines, Malaysia, Brunei, Thailand, Cambodia, Lao PDR, Myanmar and Vietnam. 
  • India’s relationship with ASEAN is a key pillar of our foreign policy and the foundation of our Act East Policy.
  • The Act-East Policy emphasizes Connectivity, Commerce and Culture(3C’s) as the focus areas of action for a greater ASEAN-India integration.
  • India initially came on board as a Sectoral Dialogue Partner in 1992, then gained Dialogue Partner status three years later. It began participating in ASEAN Summits in 2002, became a Strategic Partner in 2012, and in 2015, it formally set up a Mission to ASEAN to deepen its engagement with ASEAN.

Areas of Cooperation

Economic Cooperation

  • India was the sixth largest ASEAN’s trade partner among the ASEAN Dialogue Partners with the total trade amounting to US$ 113.07 billion, which makes 2.94% of total ASEAN trade.
  • The Foreign Direct Investment (FDI) flows from India into ASEAN experienced a decrease from US$ 1.27 billion in 2021 to US$ 0.68 billion in 2022.

Socio-Cultural Cooperation

  • ASEAN-India socio-cultural cooperation includes human resource development, people-to-people contacts, cultural exchanges, education, health, biodiversity, climate change and disaster management. All cooperation projects are funded by the ASEAN-India Fund and ASEAN-India Green Fund.
  • India is also actively contributing to the implementation of the Initiative for ASEAN Integration (IAI) Work Plans with the implementation of some of the IAI projects/activities.
  • ASEAN and India continue to organize regular programmes/activities, namely ASEAN-India Students Exchange Programmes, Special Course for ASEAN Diplomats, Delhi Dialogue, International Conference on ASEAN-India Cultural and Civilizational Links, ASEAN-India Media Exchange Programme, ASEAN-India Young Farmers Exchange Programme etc.
  • ASEAN and India are also exploring/enhancing cooperation in other areas, including cybersecurity, science and technology, transport and connectivity, digital economy, green economy, blue economy, fintech, Micro, Small and Medium Enterprises (MSMEs), start-ups, finance, energy, food security, space, Information and Communication Technology (ICT), natural resource management, public health, sustainable development, smart cities and technical and vocational education and training (TVET).

Connectivity

  • ASEAN-India connectivity is a priority for India as also the ASEAN countries. In 2013, India became the third dialogue partner of ASEAN to initiate an ASEAN Connectivity Coordinating Committee-India Meeting.
  • India has made considerable progress in implementing the India-Myanmar-Thailand Trilateral Highway and the Kaladan Multimodal Project.
  • Issues related to increasing the maritime and air connectivity between ASEAN and India and transforming the corridors of connectivity into economic corridors are under discussion.
  • A possible extension to India-Myanmar-Thailand Trilateral Highway to Cambodia, Lao PDR and Vietnam is also under consideration.

Politico-Security Cooperation

  • Faced with growing traditional and non-traditional challenges, politico-security cooperation is a key and an emerging pillar of our relationship.
  • Rising export of terror, growing radicalization through ideology of hatred, and spread of extreme violence define the landscape of common security threats to our societies.
  • India, therefore, places ASEAN at the centre of its Indo-Pacific vision of Security and Growth for All in the Region.

Significance of ASEAN to India

  • To combat shared vulnerability in the region (eg: global food insecurity, climate change and national policy responses to inflationary pressures.)
  • ASEAN is the central pillar of India’s Act East Policy and Security and Growth for All in the Region (SAGAR) initiative.
  • India has strategic and economic interests in both the Indian Ocean and the Asia-Pacific area as its markets, exports, and need for energy and other resources rise.
  • India has been a useful partner to ASEAN in the field of defense cooperation.
  • Connectivity projects with ASEAN helps in the economic growth and connectivity of the north eastern states of India.
  • ASEAN can counter China’s increased presence and debt trap diplomacy in the Indo-Pacific region.
  • Cooperation with ASEAN is necessary to combat Terrorism and Insurgency.
  • An amicable relationship with ASEAN helps to create a rules based order in the Indo-Pacific Region.
  • Deep cultural and historical connections (Buddhism and Hinduism) exist between India and ASEAN .
  • Synergies between India’s Indo-Pacific Ocean’s Initiative (IPOI) and ASEAN’s Outlook on the Indo-Pacific (AOIP).

Challenges/Issues:

Way Forward:

  • India and ASEAN can work together to address contemporary challenges such as terrorism, terror financing, and cyber-disinformation.
  • Both need to work towards deepening their strategic engagement by collectively raising issues being faced by Global South in multilateral fora.
  • Deepen the comprehensive strategic partnership with concrete actions through practical implementation of the ‘Plan of Action’ to implement the ASEAN-India partnership for peace, progress and shared prosperity.
  • The two sides need to decide on strengthening cooperation on food security and nutrition through promoting mutual trade and investment.
  • Need to complete the review of ASEAN-India FTA (AITIGA) in a time bound manner.
  • Progress towards a free and open Indo-Pacific and elevating the voice of the Global South is the need of the hour.
  • Encourage further constructive dialogue and cooperation activities through the existing regional mechanisms to promote peace and security in the region.

Related topics

PM Modi’s 12-point proposal to boost India-ASEAN collaboration for a better future (ASEAN Summit 2023)

  • Establishing multi-modal connectivity and economic corridor that links South-East Asia-India-West Asia-Europe
  • Offered to share India’s Digital Public Infrastructure Stack with ASEAN partners
  • ASEAN-India fund for Digital Future focusing on cooperation in digital transformation and financial connectivity
  • Renewal of support to Economic and Research Institute of ASEAN and East Asia (ERIA) to act as knowledge partner for enhancing our engagement.
  • Called for collectively raising issues being faced by Global South in multilateral fora
  • Invited ASEAN countries to join the Global Centre for Traditional Medicine being established by WHO in India.
  • Called for working together on Mission LiFE
  • Offered to share India’s experience in providing affordable and quality medicines to people through Jan-Aushadhi Kendras
  • Called for collective fight against terrorism, terror financing and cyber-disinformation
  • Invited ASEAN countries to join Coalition for Disaster Resilient Infrastructure
  • Called for cooperation in disaster management
  • Called for enhanced cooperation on maritime safety, security and domain awareness

Practice Question:
Critically analyze the evolution and significance of India’s relationship with ASEAN in the context of its ‘Act East’ policy. Discuss how this relationship has been influenced by geopolitical factors and how it impacts India’s strategic and economic interests.  

Reference

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