17th Asean India Summit

The 17th ASEAN-India Summit convened virtually, with India pledging US$ 1 million to the COVID-19 ASEAN Response Fund. Both India and ASEAN celebrated the adoption of the ASEAN-India Plan of Action for 2021-2025, a roadmap building on previous plans to guide the ASEAN-India Strategic Partnership. This plan encompasses Political Cooperation, Maritime Cooperation, Transnational Crime and Counterterrorism, Trade and Investment, Transport, Agriculture and Forestry, Information and Communication Technology (ICT), Tourism, Science, Technology and Innovation, and Climate Change.

India reaffirmed its commitment by reiterating its offer of a US$ 1 billion Line of Credit to bolster ASEAN connectivity, aiming for improved physical and digital infrastructure. Discussions were initiated to review the India-ASEAN Free Trade Agreement (FTA) to streamline it and make it more business-friendly. ASEAN, comprising ten Southeast Asian nations (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam), is an intergovernmental organization focused on promoting regional cooperation and integration. India became a Strategic Partner of ASEAN in 2012, building upon earlier engagements. India's Act East Policy, launched in 2014, provides the framework for the strategic partnership, emphasizing connectivity. India already possesses a Free Trade Agreement with ASEAN covering goods, services, and investment. In 2013, India was the third dialogue partner of ASEAN to initiate an ASEAN Connectivity Coordinating Committee-India Meeting.

The 17th ASEAN-India Summit: Charting a Course for Enhanced Cooperation

The 17th ASEAN-India Summit, conducted virtually, served as a significant platform for reaffirming the commitment of both India and the Association of Southeast Asian Nations (ASEAN) to deepen their strategic partnership. The summit underscored the importance of collaboration in addressing the ongoing COVID-19 pandemic and highlighted the long-term vision for enhanced cooperation across a multitude of sectors. The pledge of US$ 1 million by India to the COVID-19 ASEAN Response Fund demonstrated India’s solidarity with the region in tackling the immediate health crisis. More importantly, the adoption of the ASEAN-India Plan of Action for 2021-2025 signifies a renewed commitment to a comprehensive and multifaceted partnership. Furthermore, the reiteration of the US$ 1 billion Line of Credit for connectivity projects and the initiation of discussions to review the existing Free Trade Agreement (FTA) underscore the economic dimension of the relationship and the desire to create a more seamless and mutually beneficial trading environment.

Historical Evolution of India-ASEAN Relations

To fully appreciate the significance of the 17th ASEAN-India Summit, it is crucial to understand the historical trajectory of their relationship. India's engagement with Southeast Asia dates back centuries, marked by vibrant trade, cultural exchange, and the spread of Buddhism and Hinduism. However, in the post-colonial era, particularly during the Cold War, India's focus shifted towards non-alignment and its immediate neighborhood, leading to a period of relative disengagement with Southeast Asia.

The end of the Cold War and the adoption of economic liberalization policies in India in the early 1990s marked a turning point. Recognizing the growing economic dynamism of Southeast Asia and its strategic importance, India launched the "Look East Policy" in 1991. This policy aimed to strengthen economic, political, and security ties with ASEAN member states. The initial focus was on establishing dialogue partnerships, gradually progressing towards closer cooperation in trade, investment, and security.

India became a sectoral dialogue partner of ASEAN in 1992, a full dialogue partner in 1996, and a summit-level partner in 2002. These milestones reflected the growing trust and confidence between India and ASEAN, paving the way for a deeper strategic partnership. In 2012, India and ASEAN elevated their relationship to a strategic partnership, signifying a commitment to closer cooperation across a wide range of areas.

The "Act East Policy," announced by Prime Minister Narendra Modi in 2014, represented a further intensification of India's engagement with ASEAN. This policy goes beyond the economic focus of the "Look East Policy" and emphasizes a more proactive and comprehensive approach, encompassing political, security, and cultural dimensions. The Act East Policy reflects India's ambition to play a more active and influential role in the Indo-Pacific region and to work closely with ASEAN in addressing shared challenges and promoting regional stability.

The ASEAN-India Plan of Action: A Roadmap for Strategic Cooperation

The ASEAN-India Plan of Action serves as a crucial guiding document for the strategic partnership. It outlines the specific areas of cooperation and the concrete actions to be taken by both sides to achieve their shared objectives. The adoption of the ASEAN-India Plan of Action for 2021-2025 at the 17th Summit builds upon the successes and lessons learned from previous plans, further refining the focus and enhancing the effectiveness of the partnership.

The Plan of Action covers a wide spectrum of areas, reflecting the multifaceted nature of the ASEAN-India relationship. Key areas of cooperation include:

• Political Cooperation: This encompasses strengthening dialogue and consultation on political and security issues, promoting regional peace and stability, and enhancing cooperation in multilateral forums. This involves regular high-level exchanges, including summits, ministerial meetings, and senior officials' dialogues. It also includes cooperation in areas such as counter-terrorism, cybersecurity, and disaster management.

• Maritime Cooperation: Given the strategic importance of the maritime domain, this area focuses on enhancing maritime security, promoting freedom of navigation, combating piracy and armed robbery at sea, and strengthening cooperation in search and rescue operations. This involves joint exercises, information sharing, and capacity building initiatives.

• Transnational Crime and Counterterrorism: This addresses the growing threat of transnational crime, including drug trafficking, human trafficking, and cybercrime, as well as the challenge of terrorism. This involves intelligence sharing, joint investigations, and capacity building programs.

• Trade and Investment: This aims to promote trade and investment flows between India and ASEAN, reduce trade barriers, and create a more favorable business environment. This includes negotiations on trade agreements, promotion of investment opportunities, and facilitation of business travel.

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• Transport: This focuses on improving connectivity between India and ASEAN through the development of transport infrastructure, including roads, railways, and waterways. This includes projects such as the India-Myanmar-Thailand Trilateral Highway and the Kaladan Multi-Modal Transit Transport Project.

• Agriculture and Forestry: This aims to promote sustainable agriculture and forestry practices, enhance food security, and strengthen cooperation in agricultural research and development. This involves exchange of best practices, joint research projects, and promotion of agricultural trade.

• Information and Communication Technology (ICT): This focuses on promoting digital connectivity, enhancing cooperation in cybersecurity, and fostering innovation in the ICT sector. This includes initiatives such as the development of digital infrastructure, promotion of e-commerce, and cooperation in cyber security.

• Tourism: This aims to promote tourism between India and ASEAN, facilitate tourist travel, and enhance cooperation in tourism-related industries. This involves joint marketing campaigns, promotion of tourist destinations, and facilitation of visa procedures.

• Science, Technology, and Innovation: This focuses on promoting cooperation in scientific research and development, fostering innovation, and facilitating the transfer of technology. This includes joint research projects, exchange of scientists and researchers, and promotion of technology transfer.

• Climate Change: This addresses the challenge of climate change and promotes cooperation in areas such as renewable energy, energy efficiency, and climate adaptation. This involves joint projects on renewable energy, promotion of energy efficiency measures, and cooperation in climate adaptation strategies.

The Act East Policy: A Cornerstone of India's ASEAN Engagement

The Act East Policy serves as the overarching framework for India's engagement with ASEAN and the wider Indo-Pacific region. It represents a strategic shift from the "Look East Policy," which primarily focused on economic ties, to a more comprehensive approach that encompasses political, security, and cultural dimensions.

The key objectives of the Act East Policy are:

• Strengthening Economic Ties: This involves promoting trade and investment flows between India and ASEAN, reducing trade barriers, and creating a more favorable business environment. This includes negotiating trade agreements, promoting investment opportunities, and facilitating business travel.

• Enhancing Connectivity: This focuses on improving physical and digital connectivity between India and ASEAN through the development of transport infrastructure, including roads, railways, and waterways, as well as through the promotion of digital connectivity. This includes projects such as the India-Myanmar-Thailand Trilateral Highway and the Kaladan Multi-Modal Transit Transport Project.

• Promoting Security Cooperation: This aims to enhance maritime security, combat terrorism and transnational crime, and promote regional stability. This involves joint exercises, information sharing, and capacity building initiatives.

• Deepening Cultural Ties: This focuses on promoting cultural exchange, people-to-people contacts, and educational cooperation. This includes scholarships, exchange programs, and cultural events.

• Playing a Proactive Role in Regional Forums: This involves actively participating in regional forums such as the East Asia Summit (EAS), the ASEAN Regional Forum (ARF), and the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC).

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The Act East Policy reflects India's ambition to play a more active and influential role in the Indo-Pacific region and to work closely with ASEAN in addressing shared challenges and promoting regional stability. It is driven by a number of factors, including:

• India's Growing Economic Power: As India's economy continues to grow, it has a greater capacity to invest in and engage with the region.

• The Rise of China: The rise of China and its growing influence in the region has prompted India to strengthen its ties with ASEAN as a counterweight.

• The Importance of Maritime Security: The strategic importance of the maritime domain and the need to ensure freedom of navigation have led India to enhance its maritime cooperation with ASEAN.

• The Threat of Terrorism: The threat of terrorism and transnational crime has prompted India to strengthen its security cooperation with ASEAN.

The US$ 1 Billion Line of Credit: Fueling Connectivity

The US$ 1 billion Line of Credit offered by India to ASEAN is a significant initiative aimed at supporting connectivity projects in the region. Connectivity is a key priority for both India and ASEAN, as it is essential for promoting trade, investment, and economic integration.

The Line of Credit is intended to finance projects that improve physical and digital connectivity between India and ASEAN, including:

• Roads: This includes the construction and upgrading of roads connecting India with ASEAN member states.

• Railways: This includes the construction and upgrading of railways connecting India with ASEAN member states.

• Ports: This includes the development and modernization of ports in India and ASEAN member states.

• Airports: This includes the development and modernization of airports in India and ASEAN member states.

• Digital Infrastructure: This includes the development of digital infrastructure, such as broadband networks and data centers, in India and ASEAN member states.

The Line of Credit is expected to have a significant impact on connectivity between India and ASEAN, facilitating trade, investment, and economic integration. It will also help to promote people-to-people contacts and cultural exchange.

Reviewing the India-ASEAN Free Trade Agreement: Enhancing Economic Partnership

The India-ASEAN Free Trade Agreement (FTA) is a cornerstone of the economic relationship between India and ASEAN. The FTA, which covers trade in goods, services, and investment, has played a significant role in promoting trade and investment flows between the two regions.

However, the FTA has also been criticized for being complex and difficult to use, particularly by small and medium-sized enterprises (SMEs). There are concerns that the rules of origin are too restrictive, the tariff reduction schedules are too slow, and the dispute settlement mechanism is not effective enough.

Recognizing these concerns, India and ASEAN have initiated discussions to review the FTA with the aim of making it more user-friendly and beneficial for businesses. The review is expected to focus on:

• Simplifying the Rules of Origin: The rules of origin determine which products are eligible for preferential treatment under the FTA. Simplifying these rules would make it easier for businesses to comply with the FTA and benefit from its provisions.

• Accelerating Tariff Reduction Schedules: Accelerating the tariff reduction schedules would lead to faster liberalization of trade between India and ASEAN.

• Improving the Dispute Settlement Mechanism: Improving the dispute settlement mechanism would make it easier for businesses to resolve trade disputes.

• Addressing Non-Tariff Barriers: Addressing non-tariff barriers, such as sanitary and phytosanitary measures and technical regulations, would further facilitate trade between India and ASEAN.

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A successful review of the India-ASEAN FTA would significantly enhance the economic partnership between the two regions, promoting trade, investment, and economic growth.

ASEAN: A Regional Powerhouse

The Association of Southeast Asian Nations (ASEAN) is a regional intergovernmental organization comprising ten Southeast Asian countries: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. Established in 1967, ASEAN promotes intergovernmental cooperation and facilitates economic, political, security, military, educational, and sociocultural integration among its members.

ASEAN operates on the principles of consensus and non-interference in the internal affairs of its member states. It has a number of institutions, including the ASEAN Summit, the ASEAN Coordinating Council, and the ASEAN Secretariat.

ASEAN has been instrumental in promoting peace, stability, and economic growth in Southeast Asia. It has also played a key role in promoting regional integration and cooperation.

ASEAN's powers include the ability to create agreements and policies that member states are expected to follow. It can also act as a forum for dispute resolution and diplomatic engagement. However, ASEAN's powers are limited by the sovereignty of its member states and its reliance on consensus.

Legal Frameworks Governing India-ASEAN Relations

The legal framework governing India-ASEAN relations is based on a number of agreements and treaties, including:

• The ASEAN-India Free Trade Agreement (FTA): This agreement, which covers trade in goods, services, and investment, aims to reduce trade barriers and increase economic cooperation between ASEAN member states and India. The FTA includes provisions for tariff reduction, rules of origin, and dispute settlement.

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• The ASEAN-India Plan of Action: This strategic document outlines the areas of cooperation and specific actions to be taken by India and ASEAN to strengthen their partnership.

• Various Memoranda of Understanding (MOUs): India and ASEAN have signed a number of MOUs covering a wide range of areas, including trade, investment, transport, tourism, and education.

These legal frameworks provide the foundation for the ASEAN-India Strategic Partnership and guide the cooperation between the two regions.

Historical Precedents and Lessons Learned

The ASEAN-India relationship has evolved significantly over the years, with each summit building upon the successes and lessons learned from previous engagements. The progressive strengthening of relations has led to the establishment of a strategic partnership and various cooperation initiatives.

Previous ASEAN-India Summits have resulted in:

• Increased Trade and Investment: The FTA has led to a significant increase in trade and investment flows between India and ASEAN.

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• Enhanced Connectivity: Projects such as the India-Myanmar-Thailand Trilateral Highway and the Kaladan Multi-Modal Transit Transport Project have improved connectivity between India and ASEAN.

• Strengthened Security Cooperation: Joint exercises and information sharing have enhanced maritime security and counter-terrorism cooperation.

• Deepened Cultural Ties: Cultural exchange programs and people-to-people contacts have deepened cultural ties between India and ASEAN.

These outcomes demonstrate the continuous evolution of the ASEAN-India relationship and the commitment to deepen cooperation.

Stakeholder Positions and Underlying Interests

The key stakeholders in the ASEAN-India relationship are India and the ASEAN member states. Each stakeholder has its own official position, underlying interests, and actions taken to advance its goals.

India's Position:

• Official Position: Committed to strengthening its strategic partnership with ASEAN and promoting regional integration.

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• Underlying Interests: Enhancing economic ties, promoting regional security, and countering China's influence.

• Actions Taken: Offering financial assistance, participating in joint initiatives, and advocating for a review of the FTA.

ASEAN Member States' Position:

• Official Position: Seeking to benefit from India's economic growth and strategic partnership.

• Underlying Interests: Attracting investment, promoting trade, and enhancing regional security.

• Actions Taken: Welcoming India's initiatives and participating in joint projects.

Broader Implications of the ASEAN-India Partnership

The ASEAN-India partnership has significant implications across a range of areas, including:

• Political: Strengthening of India's position as a key player in the Indo-Pacific region.

• Diplomatic: Enhancement of diplomatic relations between India and ASEAN member states.

• Legal: Potential updates to the legal framework governing trade and investment between India and ASEAN.

• Security: Increased cooperation on maritime security and counterterrorism.

• Economic: Increased trade and investment flows between India and ASEAN.

• Technological: Collaboration in areas such as ICT and digital connectivity.

• Environmental: Cooperation on climate change and sustainable development.

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Connections to Broader Issues

The ASEAN-India partnership is connected to a number of broader issues, including:

• India-China Relations: The strategic balance in the Indo-Pacific is significantly impacted by the relationship between India and China. India's engagement with ASEAN is seen as a way to balance China's growing influence in the region.

• Regional Security Challenges: Maritime disputes in the South China Sea and the threat of terrorism are major security challenges in the region. India and ASEAN are working together to address these challenges.

• Economic Integration: ASEAN is working to promote economic integration among its member states. India is a key partner in this effort.

Future Outlook

The future outlook for the ASEAN-India Strategic Partnership is positive. Continued strengthening of the partnership is expected, with a focus on economic cooperation, security collaboration, and regional integration. Further development of connectivity projects and a more streamlined FTA are also anticipated. The partnership is poised to play an increasingly important role in shaping the future of the Indo-Pacific region. The commitment to cooperation across diverse sectors, as evidenced by the Plan of Action, suggests a deepening and broadening of ties. The focus on connectivity, through the Line of Credit, will likely translate into tangible improvements in infrastructure and digital links. The review of the FTA signals a willingness to address existing challenges and create a more robust and mutually beneficial trading environment. As both India and ASEAN navigate the complexities of the evolving geopolitical landscape, their partnership will remain a critical pillar of regional stability and prosperity. The success of this partnership hinges on continued commitment from both sides, effective implementation of agreed initiatives, and a willingness to adapt to changing circumstances. The future holds significant potential for further collaboration and growth in the ASEAN-India relationship.