India and ASEAN Relations

What is ASEAN? 

The Association of Southeast Asian Nations (ASEAN) is a regional grouping that aims to promote economic and security cooperation among its ten members: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.

• Establishment: It 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. 
• Aim: The motto of ASEAN is “One Vision, One Identity, One Community”.
• Secretariat: ASEAN Secretariat is located in Jakarta, Indonesia.
• ASEAN countries have a total population of 662 million people and a combined gross domestic product (GDP) of $3.2 trillion as of 2022.

Institutional mechanism of ASEAN

The institutional mechanism of ASEAN include

• ASEAN Summit: It meets annually to discuss regional issues and set policy directions.
• ASEAN Coordinating Council (ACC): It oversees the implementation of ASEAN agreements and decisions.
• ASEAN Secretariat: It supports and facilitates ASEAN's activities and initiatives.
• ASEAN Regional Forum (ARF): It is a platform for dialogue and cooperation on political and security issues among ASEAN member countries and their partners.
• Decision Making: It is done through consultation and consensus.

 

What are the fundamental principles of ASEAN?

Fundamental principles of ASEAN are:

• Mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity of all nations.
• The right of every State to lead its national existence free from external interference, subversion, or coercion.
• Non-interference in the internal affairs of one another.
• Settlement of differences or disputes in a peaceful manner.
• Renunciation of the threat or use of force.
• Effective cooperation among themselves.

 

How did ASEAN originate and evolve?

• Association of Southeast Asia (ASA), 1961: It was formed by Indonesia, Malaysia, the Philippines, Singapore, and Thailand to promote economic, cultural, and social cooperation.
• Bangkok Declaration, 1967: It formally established the ASEAN.
• First ASEAN Summit, 1976: In the summit, member countries pledged to work towards regional peace and stability.
• Treaty of Amity and Cooperation (TAC), 1976: It established a framework for peaceful relations and cooperation among member states.
• ASEAN Free Trade Area (AFTA), 1992: It aimed to create a free trade area among member countries.
• ASEAN Charter, 2008: It provides a legal framework for the organization and strengthens its institutional structure.
• ASEAN Economic Community (AEC), 2015: It aimed to integrate the economies of member countries and promote regional economic growth.
• ASEAN joins Regional Comprehensive Economic Partnership(RCEP), 2020:  ASEAN members join RCEP, a free trade agreement.

 

What are the strengths of ASEAN as a regional grouping?

Some of the strengths of ASEAN as a group of nations include:

• Regional stability: ASEAN has played a significant role in promoting peace and stability in the region, including through the signing of the TAC and the ARF.
• Economic growth: ASEAN has a combined population of more than 630 million people (2021) and a growing middle class, making it a dynamic and rapidly expanding market for trade and investment.
  • It is a major hub of manufacturing and trade. 
  • It is the 4th largest exporter in world trade.
• Cultural diversity: ASEAN is home to a rich and diverse range of cultures, languages, and religions, which creates opportunities for cross-cultural exchange and cooperation.
• Strategic location: ASEAN is strategically located at the crossroads of major trade routes, making it an important hub for trade and commerce.
  • Example: Strait of Malacca, which is a key shipping route for world trade.
• Diplomatic engagement: ASEAN has developed strong diplomatic ties with major powers such as the United States, China, and Japan, allowing it to leverage its strategic position and influence on global issues.
  • It has free trade agreements (FTAs) with a number of countries like India, Japan, New Zealand, China, South Korea, etc.

 

What opportunities does ASEAN provide for India?

ASEAN is significant for India in several ways:

• Potential market: ASEAN constitutes the 3rd largest market in the world. This can help India utilize its export potential.
• Convergence with Indo-Pacific strategy: ASEAN is a crucial component of India's "Act East" policy and its "Indo-Pacific" strategy, reflecting the convergence of interests in the region.
• Countering China’s influence: Strengthening relations with ASEAN countries can serve as a counterbalance to China's influence in the region.
• Connectivity with North East: Connectivity initiatives with ASEAN can boost economic development in India's northeastern states by positioning them as a hub for regional trade and commerce.
• Important for rule-based order: ASEAN plays a central role in promoting a rules-based security architecture in the Indo-Pacific region, which is essential for the region's stability and prosperity.

 

What are the areas of cooperation between India and ASEAN?

India and the ASEAN have a wide range of areas of cooperation as ASEAN is one of the important pillars of India’s Act East Policy. 

Some of the areas of cooperation are:

• Annual summit: India currently has annual summits with ASEAN.
  • The formal engagement began with “Sectoral Dialogue Partner” in 1992  and subsequently as a “Dialogue Partner” in 1996. It was upgraded to the Summit level in 2002
• Trade and Investment: India and ASEAN have signed an FTA that has boosted trade and investment between the two. 
  • ASEAN is India’s 4th largest trading partner. Total trade stood at $110.4 billion in 2021-22.
  • ASEAN-India Business Council (AIBC) was set up in 2005 with the aim of fostering closer business linkages.
• Regional connectivity: India is working on enhancing connectivity with ASEAN countries through the India-Myanmar-Thailand (IMT) Trilateral Highway, the Kaladan Multimodal Transit Transport Project etc. 
• Defense and Security: India and ASEAN have strengthened defence cooperation by conducting joint military exercises such as the ASEAN-India Maritime Exercise and the ASEAN Defense Ministers’ Meeting Plus (ADMM+).
  • Example: India places ASEAN at the centre of its Indo-Pacific vision of Security and Growth for All in the Region (SAGAR).
• Socio-cultural cooperation: India and ASEAN have promoted cultural exchanges to enhance people-to-people ties. 
  • Example: Inviting ASEAN students to India each year for the Students Exchange Programme, Special Training Course for ASEAN diplomats, Exchange of Parliamentarians, ASEAN-India Network of Think Tanks, ASEAN-India Eminent Persons Lecture Series, etc.
• Education and research: India has established the ASEAN-India Centre at the Research and Information System for Developing Countries (RIS) to promote research and studies on ASEAN-India relations. 
• Delhi Dialogue, 2009: It is an annual Track 1.5 forum for discussing politico-security, economic and socio-cultural issues between ASEAN and India.
• Funding: Financial assistance has been provided to ASEAN countries from the ASEAN-India Cooperation Fund, ASEAN-India S&T Development Fund and ASEAN-India Green Fund.

 

What are the issues and challenges in India-ASEAN relations?

While India and ASEAN have made significant progress in their bilateral relationship, there are still some issues and challenges that hinder their cooperation. 

• Trade Imbalances: India's trade deficit with ASEAN has increased over the years. This has led to concerns in India about the benefits of the ASEAN-India Free Trade Agreement.
  • Imports to ASEAN amounts to $68 billion as compared to $42 billion exports in 2021-22
• Nature of engagement: India still engages with ASEAN countries more on a bilateral basis rather than through a multilateral approach.
• Competing regional agreements: Engagement with other regional agreements like the RCEP and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) diverts attention and resources away from the ASEAN-India relationship.
• Chinese presence: The existence of other regional powers like China limits the ability of ASEAN to harness India’s potential for regional stability.
• Limited Connectivity: Despite efforts to enhance connectivity, physical and digital connectivity between India and ASEAN countries remains limited, which affects trade, investment, and people-to-people ties.

 

What should be the way forward to improve India-ASEAN relations?

Some of the steps that can be taken to improve India-ASEAN relations include: 

• Enlarging QUAD: The concept of QUAD can be expanded to include the ASEAN countries and become a QUAD+ arrangement.
• Maritime Security in the Indo-Pacific: ASEAN countries have limited military ties with China due to maritime disputes. India can fill this gap and become a significant military partner in the region.
• Strengthening cultural connect: Tourism can be further encouraged between India and the ASEAN with some creative branding by the two sides.
• Strengthen connectivity: Strengthening land, air, and sea linkages will enhance people-to-people flows, as well as boost business, investment, and tourism.

Collaborating in International and Regional forums: India and ASEAN countries can work together to promote their common interests in international and regional forums such as the United Nations, East Asia Summit, and ASEAN Regional Forum.