Contemporary issues INDIA - ASEAN

Contemporary Relations

Economic Relations: While ASEAN is India’s fourth largest trading partner, India’s trade with ASEAN stands at approx. 10.6% of India’s overall trade.
Indo-pacific: India’s Act East Policy is an important part of its Indo-Pacific vision and ASEAN is the core of the Act East Policy.
Counter aggressive China: China is engaged in territorial disputes with many ASEAN nations in the South China Sea and is locked in a bitter border row with India in eastern Ladakh.
Geo-Strategic Significance: to facilitate rule-based order and to maintain freedom of navigation cooperation in the region is an imperative.
Connectivity: With ASEAN nations can allow India to improve its presence in the region especially with respect to India’s North-eastern states via road-rail connectivity with ASEAN countries.
Socio-Cultural Cooperation: – Various programs have been organised to enhance people-to-people contacts. India has invited the ASEAN students each year for Students Exchange Program.
Security: Collaboration is necessary to counter insurgency in Northeast, combat-terrorism, tax evasions etc. Main forum for ASEAN security dialogue is ASEAN Regional Forum (ARF). ASEAN Defence Ministers’ Meeting (ADMM) is the highest defence consultative and cooperative mechanism in ASEAN. ADMM+ brings together Defence Ministers from 10 ASEAN nations plus Australia, China, India, Japan, New Zealand, Republic of Korea, Russia, and USA on a biannual basis.

Economic challenges: India has an unfavorable balance of trade with ASEAN nations. India has pulled out of RCEP deal, as it would deepen its trade deficit with China and the ASEAN nations.
Delayed Projects: India is committed to connectivity projects like India-Myanmar-Thailand trilateral highway. However, timely completion is an issue.
Ineffective Negotiations: Many bilateral deals with these nations are yet to be finalized, leading to the halting of various aspects of diplomatic ties.

India needs a close diplomatic relationship with ASEAN nations both for economic and security reasons. Hence,

Stronger strategic, security & economic ties will create greater interdependence between India and ASEAN members. This will serve as an effective counter to China’s growing clout in the region.
Explore opportunities in enhancing physical & digital connectivity between India and ASEAN.
India must speed up work on connectivity projects, such as India-Myanmar-Thailand trilateral highway and building new trade and transport linkages with all ASEAN Nations.