India's strategic engagement with the Association of Southeast Asian Nations (ASEAN) is vital for its economic, technological, and geopolitical positioning in a rapidly changing global landscape. As Asia reshapes itself around new trade agreements, technological advancements, and shifting strategic alliances, India must prioritize deeper integration with ASEAN to harness mutual growth and regional stability.
ASEAN is a coalition of 10 Southeast Asian nations—Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam—formed in 1967 with the goal of promoting economic growth, peace, and cultural development.
The Regional Comprehensive Economic Partnership (RCEP), comprising ASEAN members along with China, Japan, South Korea, Australia, and New Zealand, is the world's largest trade bloc. India was initially part of RCEP negotiations but withdrew in 2019 due to concerns about trade deficits, domestic protection, and unmet demands on tariffs, rules of origin, and investment protections.
India's relationship with ASEAN remains crucial, even though it is navigating both economic challenges and geopolitical tensions in the region.
India’s historical and civilizational links with ASEAN go back millennia, with shared heritage through Buddhism, Hinduism, and maritime trade routes. These cultural ties laid the foundation for modern diplomatic and economic relations.
India’s Look East Policy (1992) evolved into the Act East Policy in 2014, emphasizing deeper connectivity, commerce, and cooperation with Southeast Asia. This shift highlighted India’s growing focus on enhancing its engagement with ASEAN nations.
In 2022, India and ASEAN elevated their relationship to a Comprehensive Strategic Partnership, focusing on key areas such as:
Maritime security
Digital transformation
Sustainable development
Bilateral trade between India and ASEAN reached $122.67 billion in 2023-24, with ASEAN accounting for 11% of India’s global trade.
Singapore is India’s largest trading partner within ASEAN, contributing significantly to the trade volume.
The ASEAN-India Trade in Goods Agreement (AITIGA), signed in 2009, has been under review since 2023 to address issues like trade imbalances and modernize tariff structures.
India’s trade deficit with ASEAN has grown substantially, from $5 billion in 2010-11 to over $44 billion in 2024-25. Despite offering duty concessions on 71% of tariff lines, ASEAN nations have not reciprocated in a manner that addresses India’s concerns, especially with countries like Indonesia (41%) and Vietnam (66.5%).
India’s increasing focus on digital transformation has fostered collaboration with ASEAN, especially through initiatives like:
The ASEAN-India Startup Festival
Fintech partnerships
These initiatives are helping reshape economic ties and expand India’s digital footprint in the region.
Projects like the India-Myanmar-Thailand Trilateral Highway and the Kaladan Multimodal Transit Project are aimed at enhancing physical connectivity between India’s Northeast and Southeast Asia.
Digital Connectivity has also improved with India’s UPI system being integrated into ASEAN’s platforms, like Singapore’s PayNow, facilitating cross-border transactions.
India’s engagement with ASEAN is also a strategic maneuver to counterbalance China’s growing influence in the region, especially in terms of supply chains, maritime security, and climate resilience.
India has partnered with ASEAN for joint naval exercises, reinforcing freedom of navigation and regional stability in the Indo-Pacific.
Collaboration on counterterrorism and cybersecurity further solidifies India’s strategic role in ASEAN.
India's defense ties with ASEAN have grown stronger, marked by arms exports like the BrahMos missiles to the Philippines, signaling deeper strategic trust.
India faces persistent trade deficits with ASEAN, exacerbated by challenges in its Free Trade Agreements (FTAs) and rules of origin that allow Chinese goods to enter ASEAN markets under preferential terms.
India and ASEAN are not always in sync on issues like the Myanmar crisis, where India’s stance differs from ASEAN’s.
South China Sea disputes present another challenge, as ASEAN remains cautious about confronting China, while India is committed to a rules-based Indo-Pacific.
ASEAN’s consensus-based decision-making process often stalls coordinated action on key issues like China’s maritime aggression or Myanmar’s military coup, limiting the bloc’s efficacy in dealing with these matters.
Delayed infrastructure projects, especially in Myanmar, hinder the implementation of flagship initiatives that would enhance physical and digital connectivity in the region.
India should push for revising the AITIGA to address the trade imbalance, modernize tariff structures, and resolve issues related to rules of origin. Additionally, prioritizing bilateral trade pacts with strategic ASEAN countries like Vietnam, Indonesia, Singapore, and Thailand can help smooth trade frictions.
Expanding CECA (Comprehensive Economic Cooperation Agreements) and CEPA (Comprehensive Economic Partnership Agreements) will help India solidify its trade relationships with ASEAN.
India should leverage its global leadership in IT, fintech, and services to enhance digital and services trade with ASEAN countries, opening new avenues for collaboration beyond traditional goods.
India must modernize its domestic industry and MSMEs to become more competitive, using tariff buffers to support growth in sectors that are vulnerable to foreign competition.
India must overcome connectivity bottlenecks and expedite infrastructure projects in Myanmar, Thailand, and other ASEAN nations to facilitate better trade and mobility.
While India has deep civilizational ties with ASEAN, cultural diplomacy needs to be given greater strategic depth through initiatives like the ASEAN-India Year of Tourism (2025) and increased youth exchanges and educational collaborations.
India’s relationship with ASEAN is foundational to the Indo-Pacific’s future prosperity and stability. With a shared vision of a peaceful, prosperous region, India must actively engage with ASEAN to address the geopolitical and economic challenges in this dynamic region.
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We provide offline, online and recorded lectures in the same amount.
Every aspirant is unique and the mentoring is customised according to the strengths and weaknesses of the aspirant.
In every Lecture. Director Sir will provide conceptual understanding with around 800 Mindmaps.
We provide you the best and Comprehensive content which comes directly or indirectly in UPSC Exam.
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