||

Connecting Communities, One Page at a Time.

India's relationship with ASEAN, let's explore further about it?

India must pursue closer ties with the Association of Southeast Asian Nations (ASEAN) countries instead of withdrawing from current trade agreements, as Asia reshapes itself around trade, technology, and strategic partnerships

Deeksha Upadhyay 15 July 2025 15:48

India's relationship with ASEAN, let's explore further about it?

Historical Roots and Strategic Development:

Historical and Civilizational Connections: Common heritage via Buddhism, Hinduism, and sea trade routes established the basis for India-ASEAN relations.

Look East to Act East: India's Look East Policy from 1992 evolved into the Act East Policy in 2014, focusing on connectivity, trade, and collaboration.

Comprehensive Strategic Partnership: In 2022, India and ASEAN enhanced their relationship, emphasizing maritime security, digital advancement, and sustainable growth.

Economic Involvement and Trade Interactions:

ASEAN-India Trade in Goods Agreement (AITIGA): Signed in 2009, presently under review to tackle trade imbalances and update tariff systems.

Trade Volume: In 2023-24, bilateral trade totaled $122.67 billion, with ASEAN representing 11% of India’s international trade.

The combined GDP of ASEAN exceeds $3.9 trillion, positioning ASEAN as one of the largest regional economies globally.

The main share of this trade originated from Singapore, worth more than 35 billion dollars that year.

Collaboration in Digital and Startups: Events such as the ASEAN-India Startup Festival and fintech alliances are transforming economic connections.

Connectivity and Infrastructure:

India-Myanmar-Thailand Trilateral Highway and Kaladan Multimodal Transit Project: These projects seek to connect India’s Northeast region with Southeast Asia.

Digital Connectivity: India’s UPI framework is merging with ASEAN solutions such as Singapore’s PayNow, improving international transactions.

Safety and Strategic Collaboration:

Counterweight to China: Collaborative structures on supply chains, security, and climate enhance resilience.

Maritime Safety: Collaborative naval drills and defense discussions promote navigation freedom and regional peace.

Counterterrorism and Cybersecurity: India and ASEAN work together on intelligence exchange and discussions regarding cyber policies.

Defense Diplomacy: India's weapon sales to ASEAN countries, such as BrahMos missiles to the Philippines, indicate stronger strategic confidence.

Cultural Diplomacy and Interpersonal Connections:

ASEAN-India Year of Tourism 2025: India is allocating $5 million to enhance cultural exchange and tourism.

Academic Programs: Grants at Nalanda University and farming colleges

Path Forward: Adjusting Interaction

Assessing AITIGA: The ASEAN-India Trade in Goods Agreement (AITIGA) is currently under assessment to correct trade imbalances and update conditions.

Negotiate Trade Agreements: Focus on key ASEAN nations such as Vietnam, Indonesia, Singapore, and Thailand.

Broaden CECA & CEPA Agreements: Enhance current Comprehensive Economic Cooperation Agreements.

Digital & Services Trade: India’s prowess in IT and fintech presents fresh opportunities for partnership beyond tangible products.

Revitalize Local Industry: Implement tariff protections to enhance MSMEs and improve competitiveness.

Conclusion

India's interaction with ASEAN is driven by mutual respect, common values, and a vision for a peaceful and prosperous Indo-Pacific.

Its dedication to ‘ASEAN centrality’ in the Indo-Pacific is broadly recognized, yet ongoing involvement is crucial.

The ASEAN-India Plan of Action 2026–2030 will enable both parties to enhance collaboration in emerging technologies, climate resilience, and regional governance.

Also Read