INDIA-ASEAN
RELATIONS – INTERNATIONAL
News:
Engagement with ASEAN is
an important pillar of India’s ‘Act East’ policy, says PM Modi
What's
in the news?
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The Association of Southeast Asian Nations
(ASEAN) is an “important pillar” of India’s Act East policy, said Prime
Minister Narendra Modi, as he departed for Indonesia to attend the 20th
ASEAN-India summit and 18th East Asia Summit (EAS) in Jakarta. Mr. Modi will
meet with leaders of the ten ASEAN countries followed immediately by the EAS
meeting, which includes leaders of all ASEAN nations and Australia, China,
India, Japan, New Zealand, South Korea, Russia, and the U.S.
Significance
of ASEAN to India:
1.
ASEAN’s centrality in India’s foreign policy:
●
A cohesive, responsive, and prosperous
ASEAN is central to India’s Indo-Pacific Vision and India’s Act East Policy and
contributes to Security and Growth for
All in the Region (SAGAR).
2.
Economic:
●
ASEAN is one of the largest markets in the
world comparative to the EU and North American markets.
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It’s also the 4th most popular investment
destination globally.
●
Investment opportunities for Indian
businesses - Cost of production is lower in Laos, Cambodia, and Myanmar, which
means that Indian firms can gain significantly by investing in these countries.
3.
Countering China:
●
Cooperation between India and ASEAN is
crucial to counter China’s power projection in the region.
●
Both have territorial and border issues
with China, disputes over the South China Islands and waters for ASEAN and over
land boundaries for India.
4.
Integration with regional and global supply chains:
●
Increasing engagement with ASEAN is
pivotal to facilitate India’s integration with regional and global supply chain
movements.
5.
North-East development:
●
Connectivity projects with the ASEAN
nations keeping Northeast India at the centre can ensure the economic growth of
the land-locked north-eastern states.
6.
Edible oil dependence:
●
India has been importing approximately
half of the country's total requirement of edible oils.
●
Most of the edible oil imported by India
is refined palm oil or palm olein and much of the imported oil comes from
Indonesia and Malaysia.
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India is the world’s largest importer of
palm oil from its largest producers, Indonesia and Malaysia.
7.
Counter-terrorism:
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Collaboration with the ASEAN nations is
necessary to counter insurgency in the Northeast, combat terrorism, etc.
8.
Maritime security:
●
The Indian Ocean carries 90% of India’s
trade and its energy sources. Presence of choke points such as the Malacca
strait makes the South-East Asian region significant for countering traditional
and non-traditional maritime threats like piracy and terrorism.
9.
Indian Diaspora:
●
About 9-8% of the population in Malaysia
and Singapore is of Indian origin, in Myanmar-4% and Indonesia about 0.5%.
Challenges
in India - ASEAN relations:
1.
Drug trafficking menace:
●
Cross country organized crime like drug
trafficking between Myanmar, Thailand and Laos forming the Golden Triangle
could not be contained by ASEAN.
2.
China factor:
●
India’s effort in this regard is meager
when compared to China’s dominance in the region
●
China’s assertive military, political and
economic rise, as well as the South China Sea disputes have divided ASEAN
without unanimity amongst them.
3.
RCEP relations:
●
India walking out of RCEP can become a
sticking point between India and ASEAN, since India’s domestic market was
considered a key element in the RCEP negotiations.
●
India has not signed RCEP for various
reasons like non-transparency in RCEP, RCEP’s non-accounting of India’s service
sector relaxations, etc.
●
By not signing the RCEP India also lost
access to new market opportunities created in East Asia.
4.
Delayed projects:
●
Though India has committed to many
connectivity projects, they have not been completed at the rate on par with
China
●
China, on the other hand, through its BRI,
is able to gain the trust of these countries.
5.
Economic challenges:
●
India has an unfavourable balance of trade
with the ASEAN nations.
WAY
FORWARD:
●
ASEAN-led mechanisms should be regarded as
a viable regional architecture platform for the Indo-Pacific region.
●
India is one of the founding members of
the East Asia Summit.
●
ASEAN
continues to maintain its central role in the evolving regional architecture in
Southeast Asia and its surrounding regions.
●
India
should increase its bilateral and multilateral engagements with ASEAN.
●
ASEAN countries need to work to restore
the ‘ASEAN centrality and unity’ through the strategic environment of competing
interests.
●
India should push for the reconciliation
between Myanmar and the ASEAN.
●
The focus must be on emerging challenges
to international peace and security.