India and ASEAN – Cooperation and Partnership in all fields

• India needs a close diplomatic relationship with ASEAN nations both for economic and security reasons.
• China’s rise has become a good opportunity for like-minded countries together while perceiving the former as a threat to their territorial sovereignty and national security.
• India has adopted many strategies through its increased assertiveness and focus on the Act East Policy post-PM Modi’s pitch for an Atmanirbhar Bharat.
• There is a need to expand the concept of QUAD to include the ASEAN countries and become a QUAD+ arrangement.

ASEAN, a 10-nation grouping, is considered one of the most influential groupings in Southeast Asia. India and several other countries, including the US, China, Japan and Australia, are its dialogue partners. The ASEAN-India dialogue relations started with the establishment of a sectoral partnership in 1992. This graduated to a full dialogue partnership in December 1995 and a summit-level partnership in 2002.

Traditionally the basis of India-ASEAN ties has been trading and people-to-people ties due to shared historical and cultural roots, a more recent and urgent area of convergence have been balancing China’s rise. Both India and ASEAN aim to establish a rules-based security architecture for peaceful development in the region, in contrast to China’s aggressive policies. and Military exercises are conducted between India and most ASEAN countries. Vietnam

Areas of Cooperation

Economic Cooperation

India became ASEAN Dialogue Partner in 1996. Preliminary ASEAN data showed that two-way merchandise trade between ASEAN and India reached USD 77.0 billion in 2019, while total FDI inflows from India amounted to USD 2.0 billion. This placed India as ASEAN’s sixth-largest trading partner and eighth-largest source of FDI among ASEAN Dialogue Partners.

At the 2nd ASEAN-India Summit in 2003, the Leaders signed the ASEAN-India Framework Agreement on Comprehensive Economic Cooperation. The Framework Agreement laid a sound basis for the establishment of an ASEAN-India Free Trade Area (FTA), which includes FTA in goods, services and investment. The ASEAN-India Trade in Goods Agreement (AITIGA) entered into force on 1 January 2010. The signing of the AITIGA on 13 August 2009 in Bangkok paved the way for the creation of one of the world’s largest free trade areas with more than 1.9 billion people and a combined GDP of US$ 5.36 trillion. The ASEAN-India Trade in Services Agreement was signed by all Parties on 13 November 2014 and entered into force on 1 July 2015. As of date, the Agreement has been ratified by all Parties. Meanwhile, the ASEAN-India Investment Agreement was signed by all Parties on 12 November 2014. The Agreement entered into force on 1 July 2015. To date, it has been ratified by all Parties, except Cambodia.

Connectivity

India currently is working with ASEAN on multiple connectivity projects, through land, water, and air. Giving substance to ASEAN-India relations through connectivity will gradually change the geopolitical landscape of this region. In this context, India has now been actively developing infrastructure in Northeastern India. Bangladesh-China-India-Myanmar (BCIM) Corridor is part of this. These connectivity projects will not only curb existing insurgencies but also help India’s northeastern states to develop their economic potential and integrate with mainland India. Further, India-ASEAN Free Trade Agreement (FTA) is central to India’s growing engagement with her eastern neighbours. It will enable small and medium-sized enterprises in the border areas to explore new business opportunities. 

Cross-Connectivity Projects

India-Myanmar-Thailand Trilateral Highway: One of the flagship projects for land connectivity between ASEAN and India. Connecting the three countries from Moreh in India to Mae Sot in Thailand to Bagan in Myanmar was first proposed in 2002. Besides this, the India, Myanmar, and Thailand Motor Vehicles Agreement (IMT MVA) is in the final stage. On realization, this will become the first-ever cross-border facilitation agreement between South and Southeast Asia. 

Mekong-India Economic Corridor (MIEC)

Involves the integration of four Mekong countries – Vietnam, Myanmar, Thailand, and Cambodia – along with India, connecting Ho Chi Minh City, Dawei, Bangkok, and Phnom Penh with Chennai.

The corridor will provide opportunities for the participant countries to develop infrastructure, enhance their economic base with the region, and especially reduce the transit distance between India and ASEAN countries

Defence Cooperation

Recently, many semi-alliance-like structures were showcased for maintaining equilibrium through military exercises and defence ministers’ meetings, which could be seen through India’s recent engagement with Thailand, Singapore and Vietnam. This is another important development taking the post-ASEAN summit, held recently.

A common perception vis-à-vis China’s rise has become a good opportunity for like-minded countries together while perceiving the former as a threat to their territorial sovereignty and national security. India has adopted many strategies through its increased assertiveness and focus on the Act East Policy post-PM Modi’s pitch for an Atmanirbhar Bharat.

Also, India has held joint military drills with Singapore, and Thailand under its SIMBEX, and SITMEX exercises to ensure maritime security, and peace in the Indo-Pacific. Other reasons behind holding such exercises could be a deterrent tool towards countries misusing the sea lanes of navigation and not adhering to norms as per the UNCLOS (United Nations Convention of Laws of Seas). Defence cooperation and mutual understanding could be developed through these naval exercises along with further contributions towards International Peacekeeping through humanitarian aid, and natural disaster mitigation.

What is the Significance of ASEAN for India?

India needs a close diplomatic relationship with ASEAN nations both for economic and security reasons. Connectivity with the ASEAN nations can allow India to improve its presence in the region. These connectivity projects keep Northeast India at the centre, ensuring the economic growth of the northeastern states. Improved trade ties with the ASEAN nations would mean a counter to China’s presence in the region and economic growth and development for India.ASEAN occupies a centralised position in the rules-based security architecture in the Indo-Pacific, which is vital for India since most of its trade is dependent on maritime security. Collaboration with the ASEAN nations is necessary to counter insurgency in the Northeast, and combat terrorism, tax evasion etc.

Way Forward

With China having three times more commercial flights than India to Southeast Asia, improving air connectivity between India and ASEAN countries should also be high on the agenda. India can become a military partner after the Atma Nirbar Bharat, Make in India projects are successfully implemented. There is a need to expand the concept of QUAD to include the ASEAN countries and become a QUAD+ arrangement.