{"id":47830,"date":"2025-07-11T20:39:10","date_gmt":"2025-07-11T15:09:10","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=47830"},"modified":"2025-07-29T14:59:23","modified_gmt":"2025-07-29T09:29:23","slug":"india-asean-ties","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/editorial-analysis\/11-07-2025\/india-asean-ties","title":{"rendered":"India Ties with ASEAN"},"content":{"rendered":"\n<p><strong>Syllabus: GS2\/International Relation<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India needs to embrace deeper engagement with the <strong>Association of Southeast Asian Nations (ASEAN)<\/strong> nations rather than retreat from existing trade agreements, as Asia reconfigures itself around trade, technology, and strategic alliances.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background has-fixed-layout\" style=\"background-color:#ebecf0\"><tbody><tr><td><strong>ASEAN and RCEP<\/strong><br>&#8211; <strong>ASEAN:<\/strong> It is a regional bloc of <strong>10 Southeast Asian nations <\/strong>\u2014 Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.<br>1. It was formed in <strong>1967 in Bangkok, Thailand<\/strong> to promote economic growth, peace, and cultural development.<br>&#8211; <strong>Regional Comprehensive Economic Partnership (RCEP):<\/strong> It is the world\u2019s largest trade bloc, comprising<strong> 15 countries<\/strong> including <strong>ASEAN, China, Japan, South Korea, Australia, and New Zealand<\/strong>.<br>1. India was a founding negotiator but <strong>withdrew in 2019, <\/strong>because of issues related to <strong>trade deficit <\/strong>&amp; imbalance, <strong>protection of domestic industry, <\/strong>and <strong>unmet demands<\/strong> like tariff differentials, rules of origin, and investment protections.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About India\u2019s Ties with ASEAN<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Historical Foundations and Strategic Evolution:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Historical and Civilizational Links:<\/strong> Shared heritage through Buddhism, Hinduism, and maritime trade routes laid the foundation for India-ASEAN ties.<\/li>\n\n\n\n<li><strong>Look East to Act East:<\/strong> India\u2019s 1992 Look East Policy matured into the Act East Policy in 2014, emphasizing connectivity, commerce, and cooperation.<\/li>\n\n\n\n<li><strong>Comprehensive Strategic Partnership:<\/strong> In 2022, India and ASEAN elevated their ties, focusing on maritime security, digital transformation, and sustainable development.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Economic Engagement and Trade Dynamics:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>ASEAN-India Trade in Goods Agreement (AITIGA):<\/strong> Signed in 2009, currently under review to address trade imbalances and modernize tariff structures.<\/li>\n\n\n\n<li><strong>Trade Volume: <\/strong>Bilateral trade reached $122.67 billion in 2023-24, with ASEAN accounting for 11% of India\u2019s global trade.\n<ul class=\"wp-block-list\">\n<li><strong>The collective GDP of ASEAN <\/strong>is over $3.9 trillion, making ASEAN one of the world\u2019s largest regional economies.<\/li>\n\n\n\n<li>The largest portion of this trade came from Singapore, valued at over 35 billion dollars that year.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Digital and Startup Collaboration:<\/strong> Initiatives like the <strong>ASEAN-India Startup Festival<\/strong> and fintech partnerships are reshaping economic ties.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Connectivity and Infrastructure:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>India-Myanmar-Thailand Trilateral Highway<\/strong> and <strong>Kaladan Multimodal Transit Project:<\/strong> These aim to physically link India\u2019s Northeast with Southeast Asia.<\/li>\n\n\n\n<li><strong>Digital Connectivity:<\/strong> India\u2019s UPI system is being integrated with ASEAN platforms like Singapore\u2019s PayNow, enhancing cross-border transactions.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Security and Strategic Cooperation:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Counterbalance to China:<\/strong> Joint frameworks on supply chains, security, and climate build resilience.<\/li>\n\n\n\n<li><strong>Maritime Security:<\/strong> Joint naval exercises and defense dialogues support freedom of navigation and regional stability.<\/li>\n\n\n\n<li><strong>Counterterrorism and Cybersecurity:<\/strong> India and ASEAN collaborate on intelligence sharing and cyber policy dialogues.<\/li>\n\n\n\n<li><strong>Defense Diplomacy: <\/strong>India\u2019s arms exports to ASEAN nations, including BrahMos missiles to the Philippines, signal deeper strategic trust.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Cultural Diplomacy and People-to-People Ties:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>ASEAN-India Year of Tourism 2025:<\/strong> India is investing $5 million to promote cultural exchange and tourism.<\/li>\n\n\n\n<li><strong>Educational Initiatives:<\/strong> Scholarships at Nalanda University and agricultural institutions foster academic collaboration.<\/li>\n\n\n\n<li><strong>Shared Heritage:<\/strong> Events like the Ramayana Festival and ASEAN-India Music Festival celebrate civilizational bonds.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Issues &amp; Concerns<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Trade Imbalance &amp; FTA Frictions:<\/strong> India\u2019s trade deficit with ASEAN from $5 billion in 2010\u201311 to over $44 billion in 2024\u201325, despite bilateral trade crossing $130 billion.\n<ul class=\"wp-block-list\">\n<li>India offered duty concessions on 71% of tariff lines, while ASEAN countries reciprocated with much lower percentages (e.g., Indonesia: 41%, Vietnam: 66.5%).<\/li>\n\n\n\n<li>The review of the <strong>ASEAN-India Trade in Goods Agreement (AITIGA)<\/strong>, announced in 2023, has seen <strong>slow progress due<\/strong> to ASEAN\u2019s reluctance to renegotiate terms.\n<ul class=\"wp-block-list\">\n<li><strong>India\u2019s FTA with ASEAN<\/strong>, in effect since 2010, is undergoing its <strong>10th review.<\/strong>&nbsp;<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>India fears that Chinese goods are being <strong>rerouted through ASEAN<\/strong> <strong><em>(rule of origin)<\/em><\/strong> to exploit FTA benefits, undermining domestic manufacturing.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Geopolitical &amp; Strategic Coordination Gaps:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Myanmar Crisis:<\/strong> India and ASEAN differ on how to engage with Myanmar\u2019s military junta, complicating regional diplomacy and connectivity projects.<\/li>\n\n\n\n<li><strong>South China Sea Disputes:<\/strong> ASEAN\u2019s cautious stance on China\u2019s maritime claims contrasts with India\u2019s support for a rules-based Indo-Pacific, creating strategic ambiguity.<\/li>\n\n\n\n<li><strong>Quad &amp; AUKUS Sensitivities: <\/strong>ASEAN\u2019s discomfort with India\u2019s growing role in Quad and other security groupings reflects fears of being sidelined or antagonizing China.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Connectivity &amp; Infrastructure Bottlenecks:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Delayed Projects:<\/strong> Flagship initiatives by India have been hampered by conflict in Myanmar and bureaucratic inertia.<\/li>\n\n\n\n<li><strong>Limited Maritime &amp; Air Links:<\/strong> Despite shared goals, maritime and air connectivity remains underdeveloped, affecting trade and tourism.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Diplomatic &amp; Institutional Challenges:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Fragmented Engagement:<\/strong> India often engages ASEAN countries bilaterally rather than through a unified regional approach, leading to coordination issues.<\/li>\n\n\n\n<li><strong>Underutilized Cultural Diplomacy:<\/strong> While India has deep civilizational ties with Southeast Asia, cultural outreach is sporadic and lacks strategic depth.<\/li>\n\n\n\n<li><strong>Youth &amp; Educational Disconnect: <\/strong>Limited exposure to ASEAN languages, arts, and history among Indian youth weakens long-term people-to-people ties.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Policy &amp; Perception Gaps:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Protectionism vs. Integration:<\/strong> India\u2019s cautious trade stance, including its exit from RCEP, has raised concerns about its reliability as a regional partner.<\/li>\n\n\n\n<li><strong>ASEAN\u2019s Internal Divisions:<\/strong> ASEAN\u2019s consensus-based model often stalls unified action, especially on contentious issues like China\u2019s aggression or Myanmar\u2019s coup.<\/li>\n\n\n\n<li><strong>Digital Colonialism:<\/strong> Global tech platforms dominate cultural narratives, sidelining indigenous voices from both India and ASEAN.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Road Ahead: Recalibrating Engagement<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Reviewing AITIGA: <\/strong>The ASEAN-India Trade in Goods Agreement (AITIGA) is under review to address trade imbalances and modernize terms.<\/li>\n\n\n\n<li><strong>Negotiate Bilateral Trade Pacts:<\/strong> Prioritize strategic ASEAN economies like Vietnam, Indonesia, Singapore and Thailand.<\/li>\n\n\n\n<li><strong>Expand CECA &amp; CEPA Agreements:<\/strong> Strengthen existing Comprehensive Economic Cooperation Agreements.<\/li>\n\n\n\n<li><strong>Digital &amp; Services Trade:<\/strong> India\u2019s strength in IT and fintech offers new avenues for collaboration beyond goods.<\/li>\n\n\n\n<li><strong>Modernize Domestic Industry:<\/strong> Use tariff buffers to upgrade MSMEs and boost competitiveness.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India\u2019s engagement with ASEAN is guided by mutual respect, shared values, and a vision for a peaceful, prosperous Indo-Pacific.\n<ul class=\"wp-block-list\">\n<li>Its commitment to <strong>\u2018ASEAN centrality\u2019<\/strong> in the Indo-Pacific is widely acknowledged, but consistent engagement remains key.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>With the adoption of the <strong>ASEAN-India Plan of Action 2026\u20132030<\/strong>, both sides are poised to deepen cooperation in emerging technologies, climate resilience, and regional governance.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#fff2cc\"><tbody><tr><td><strong>Daily Mains Practice Question<\/strong><br><strong>[Q]<\/strong> Do you agree that India&#8217;s decision to stay out of the RCEP trade agreement could undermine its long-term strategic and economic relationship with ASEAN nations?<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><a href=\"https:\/\/www.business-standard.com\/opinion\/editorial\/india-must-deepen-ties-with-asean-nations-not-abandon-its-trade-agreement-125070901462_1.html\" rel=\"nofollow noopener\" target=\"_blank\">Source: BS<\/a><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.nextias.com\/ca\/wp-content\/uploads\/2025\/07\/UPSC-Editorial-Analysis-11-July-2025.PDF.pdf\">Download PDF<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>India needs to embrace deeper engagement with the Association of Southeast Asian Nations (ASEAN) nations rather than retreat from existing trade agreements, as Asia reconfigures itself around trade, technology, and strategic alliances.<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[22],"tags":[],"class_list":["post-47830","post","type-post","status-publish","format-standard","hentry","category-editorial-analysis"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/47830","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=47830"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/47830\/revisions"}],"predecessor-version":[{"id":47855,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/47830\/revisions\/47855"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=47830"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=47830"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=47830"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}