By Samyak Rachit Banerjee
Abstract
This article outlines the evolving relationship between India and the Association of South-East Asian Nations (hereafter referred to as ASEAN), highlighting the strategic and economic aspects of their partnership. Since the 1990s, India’s engagement with ASEAN has deepened, culminating in a Comprehensive Strategic Partnership in 2022. Both sides seek to counter China’s assertiveness in the region, with India emerging as a key player in ASEAN’s strategic calculus. The article touches on the economic ties between India and ASEAN, including trade agreements and collaborative efforts, and underscores the importance of this partnership in shaping the geopolitical dynamics of the Indo-Pacific region.
Introduction
In 1992, India established official ties with ASEAN as a “Sectoral Dialogue Partner,” subsequently advancing to a “Dialogue Partner” status in 1995, aligning with India’s Look East policy. India’s focus on strengthening and deepening ties with ASEAN is a result of major changes in the global political and economic landscape since the early 1990s and India’s march toward economic liberalisation. The forthcoming article endeavors to advocate for bolstering India-ASEAN relations through enhanced collaboration in the economic domain, with the ultimate goal of forging a cohesive and comprehensive strategic partnership. This proposal is rooted in the mutual apprehension shared by both parties regarding the contested nature of their territories with China.
Charting the Course
Since assuming the role of a dialogue partner with ASEAN in 1995, India’s engagement with ASEAN involved interactions at the Foreign Minister level, which were later elevated to the Summit level in 2002 with the inaugural Summit-level meeting. At the 20th Anniversary Commemorative Summit Meeting in New Delhi in December 2012, the Dialogue Partnership was promoted to a Strategic Partnership. In January 2018, India and ASEAN decided to focus their Strategic Partnership on enhancing collaboration in the maritime domain during the 25-year Commemorative Summit in New Delhi. Formally, the 19th ASEAN-India Summit held on November 12, 2022, commemorated the 30th anniversary of ASEAN-India Dialogue Relations. In October 2021, it was designated as the “year of friendship” to honour the three-decade-long partnership. Additionally, during this summit, the Strategic Partnership was upgraded to a Comprehensive Strategic Partnership.
India’s endeavor to engage with Southeast Asian nations is a direct consequence of its previous Look East and current Act East policies. Through these initiatives, India has aimed to foster closer strategic, cultural, and economic ties with its eastern neighbors. India’s engagements with Southeast Asian countries have been significantly motivated by the aim to address and counter the influence of China in the region. Over the previous two decades, the rapid expansion of China has profoundly transformed the geopolitics of the Asia-Pacific. For ASEAN’s rapidly rising and strategically positioned members, readjusting to an emerging international order characterised principally by the Sino-US struggle has proved especially difficult. ASEAN has since sought a “third party” regional force to mitigate the risks of the US-China competition.
Given that both India and ASEAN harbour mutual apprehensions regarding China’s assertive ascent and the evolving power dynamics transitioning from the US to China within the Indian Ocean Region, they have resolved to enhance their mutual interactions. This endeavor is additionally reinforced by the heightened prominence of both India and ASEAN on the international platform. Moreover, the dissemination of new maps by China, along with its territorial claims encompassing regions belonging to India and Southeast Asian nations, would exacerbate the collective worries shared by India and ASEAN. According to a recent poll conducted by the ISEAS-Yusof Ishak Institute on elite public sentiment in Southeast Asia, India has emerged unexpectedly as the third preferred choice for a “third party” partner for ASEAN, garnering backing from 11.3% of respondents. This positions India behind the European Union, which obtained support from 42.9%, and Japan, which secured 26.6% of support. This can be attributed to the growing India-ASEAN economic ties over the past 30 years, with ASEAN being India’s 4th largest trading partner which accounts for a total of 11.3% of India’s total trade in FY 2022-23.
Progress in Partnership
Both India and ASEAN are striving to assert leadership within the global South, endeavoring to reshape institutions traditionally dominated by the global North, thereby aiming to alter prevailing global power dynamics. As a manifestation of the mutual commitment of ASEAN and India to enhance their interaction, the ASEAN-India Partnership for Peace, Progress, and Shared Prosperity was formally established during the 3rd ASEAN-India Summit held in Vientiane in 2004. This pivotal agreement delineates a comprehensive roadmap for fostering enduring engagement and collaboration between the two regions. Over the span of half a century, ASEAN, functioning as a collective entity grounded in shared agreement, has dedicated extensive efforts towards fostering peace, advancement, and economic well-being within its region. Recognizing the pivotal role played by ASEAN in shaping the geopolitical landscape, India strategically positions the association at the heart of its comprehensive Indo-Pacific vision, aiming to ensure security and foster inclusive growth for all stakeholders across the region.
In April 2015, India established a separate Mission to ASEAN and the East Asia Summit in Jakarta, led by a dedicated Ambassador, to increase interaction with ASEAN and its procedures. ASEAN and India have also implemented three formal institutional mechanisms to further promote the Indian-ASEAN economic connect which are-
- ASEAN Economic Ministers-India Consultations (AEM + India)
- The ASEAN India Framework Agreement on Comprehensive Economic Cooperation (2003)
- ASEAN-India Business Council (AIBC)
Formally stated, the bilateral trade between India and ASEAN reached USD 131.5 billion during the fiscal year 2022-23, comprising 11.3% of India’s total global trade for the same period. Formally articulated, during the ASEAN-India Economic Ministers’ gathering convened on August 21, 2023, the primary focus was on the prompt assessment of the ASEAN-India Trade in Goods Agreement (AITIGA), originally ratified in 2009. In a formal agreement, the Ministers committed to adhering to a quarterly negotiation schedule and aim to finalize the review process by the year 2025.
In May 2023, India and ASEAN launched their inaugural joint naval exercise near the shores of Singapore as a mutual endeavor to foster trust and collaboration. This ASEAN-India Maritime Exercise was jointly organised by the Republic of Singapore Navy and the Indian Navy, with involvement from ships and personnel from additional ASEAN nations. In an official capacity, India demonstrated its naval capabilities by featuring two domestically produced vessels: INS Delhi, the nation’s inaugural indigenous guided missile destroyer, and INS Satpura, a locally manufactured 6,000-tonne Shivalik class stealth multirole frigate. In addition to the pair of vessels, the exercise also involved the participation of Indian maritime patrol aircraft P8I and accompanying helicopters. As per an official statement from the Singapore Navy, AIME 2023 featured the participation of nine vessels, six aircraft, and over 1,800 personnel representing various ASEAN member nations. This demonstrates the depth of commitment both India and ASEAN have towards each other and the collaboration fostered through this partnership.
The China Equation
China emerges as a significant driver of recent diplomatic efforts between India and ASEAN. Both ASEAN nations and India are apprehensive about China’s assertive behavior in recent times. Despite the region grappling with the pandemic’s effects, China has continued its assertiveness in the South China Sea, including repeated violations of Indonesia’s Exclusive Economic Zone and confrontations with Malaysia, the Philippines, and Vietnam. Simultaneously, China has been involved in a long-standing border dispute with India. The decision by India and ASEAN to elevate their partnership to a Comprehensive Strategic Partnership in 2022 can be linked to China’s recent aggressive actions towards both Indian and Southeast Asian territories. India’s increasing strategic presence in ASEAN is crucial as both sides address China’s territorial intrusions.
India’s increasing strategic importance within ASEAN is crucial, given the shared challenge of countering China’s territorial intrusions. An incident in May 2023 exemplifies this, where Chinese maritime militia seemingly approached a South China Sea area during a naval exercise involving Indian and ASEAN navies. Despite accusations, China denies any deliberate action, though an independent expert in Vietnam suggests Beijing may have intended to intimidate and disrupt the exercise using the militia. Indian officials were monitoring the movements of at least five militia boats, as per undisclosed sources who declined to be named due to lacking authorisation to speak to the media. Additionally, a Chinese research vessel was observed trailing these boats towards the same region, the sources added. This development has coincided effectively with India’s efforts to build rapport globally, backed by its recent economic and military growth. India is gradually gaining acceptance among ASEAN countries as a potential third-party player.
Navigating the future
As India and ASEAN advance their strategic cooperation, they must address certain challenges to ensure smooth progress in their relations. India and ASEAN ought to collaborate more closely on economic issues. In contrast to India, ASEAN does not constitute a single market. Barriers at borders are currently quite high, and non-tariff measures (NTMs) are on the rise. The escalation of NTMs might lead to higher trade expenses, which could impede the growth of trade. To rival China, India must deepen its economic engagement with the region. China now has a significant advantage because it is ASEAN’s major trading partner. Second, ASEAN’s divide on the Myanmar problem presents a hurdle. ASEAN nations have expressed varying views on Myanmar’s military takeover. While ASEAN as a whole has prohibited Myanmar’s military commanders from attending high-level meetings, Indonesia and Thailand have expressed opposing views. India, for its part, has urged for Myanmar’s democracy to be restored while avoiding outright condemnation of the country’s military. India needs to find ways to bypass this hot topic by trying to focus the shift on China for the short term while keeping the issue of Myanmar for the long term.
After addressing the aforementioned issues, India should strengthen its ties with ASEAN. Initially hesitant to cooperate with Australia in the QUAD due to concerns about escalating tensions with China, India gradually overcame these concerns and proceeded with the QUAD. Likewise, India appears to be overcoming its concerns about potential repercussions with China through its recent joint naval exercise with ASEAN. In light of China’s ongoing military and diplomatic pressure on ASEAN and India, it is expected that both parties will seek to enhance their defense cooperation to deter or mitigate China’s assertiveness in the Indo-Pacific region. In both economic and military spheres, India and ASEAN confront the shared challenge posed by China, which undermines stability in the Indo-Pacific region. This serves as a compelling incentive for them to collaborate closely. Culture has the capacity to encourage strategic interactions and engagements. Building upon the existing cultural connections rooted in Hinduism and Buddhism could strengthen interpersonal relationships, ultimately resulting in closer governmental ties.
India is currently intensifying its manufacturing sector and requires markets for its burgeoning industry, akin to China’s proactive outreach with its manufactured goods, establishing itself as a dependable partner. India has the potential to become ASEAN’s manufacturing hub, while also attracting FDIs from ASEAN to further boost its growing economy. Through initiatives like AIME, India can demonstrate its reliability as a security partner to ASEAN, fostering a symbiotic relationship between the two rising powers.
Author’s Bio
Samyak Rachit Banerjee is a second-year student in the Jindal School of International Affairs. He is interested in India-China relations and India’s domestic policies.
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