India-ASEAN Relations

Indonesia’s participation in India’s Republic Day celebrations highlights the growing strategic and cultural ties between India and ASEAN.

India-ASEAN relations have evolved from historical and cultural ties to a comprehensive strategic partnership. Indonesia, ASEAN's largest economy, plays a key role in India's Southeast Asia engagement. With rising Indo-Pacific challenges, India and ASEAN seek greater regional stability.

Early Engagement: Historical and Cultural Ties

• Ancient trade routes facilitated goods, ideas, and religious exchanges.
• Hinduism, Buddhism, and Sanskrit influenced Southeast Asia (e.g., Angkor Wat, Ramayana traditions).
• India supported Indonesia’s independence and contributed to the 1955 Bandung Conference.

Limited Interaction During the Cold War (1950s–1980s)

• India’s focus on non-alignment and economic issues limited ASEAN engagement.
• ASEAN prioritized Western economies, particularly the U.S.

Post-Cold War Engagement (1990s–2000s)

• Look East Policy (1991) marked India's economic shift towards ASEAN.
• India became a Full Dialogue Partner (1996) and Summit-level Partner (2002).
• ASEAN-India FTA (2009 for goods, 2015 for services) enhanced trade ties.

Strengthening Strategic Partnership (2011–Present)

• Act East Policy (2014) deepened economic and security engagement.
• Comprehensive Strategic Partnership (2022) strengthened trade and maritime cooperation.
• ASEAN-India Plan of Action (2016-2020) implemented 70 out of 130 planned activities.

Maritime Security & Indo-Pacific Cooperation

• India supports ASEAN Centrality and aligns its Indo-Pacific Oceans Initiative (IPOI) with ASEAN’s Outlook on the Indo-Pacific (AOIP).
• Enhanced naval exercises, joint patrolling, and capacity-building programs.

Trade and Economic Integration

• ASEAN is India’s fourth-largest trading partner, with $122.67 billion trade in 2023-24.
• India is reviewing ASEAN-India FTA to address trade imbalances.
• The UPI-PayNow link enhances financial integration with ASEAN.

Connectivity & Infrastructure Development

• Trilateral Highway and Kaladan Multimodal Project aim to link India’s Northeast to Southeast Asia.

• India committed $1 billion in credit for ASEAN connectivity.
• Focus on digital infrastructure and 5G collaboration.

Defense and Counterterrorism Cooperation

• Joint military training, intelligence sharing, and defense exports (e.g., BrahMos to the Philippines).
• Terrorism threats in Southeast Asia and India’s Northeast make security cooperation vital.

Energy Security & Green Transition

• India’s International Solar Alliance (ISA) supports ASEAN’s clean energy initiatives.
• Collaboration in green hydrogen, solar power, and nuclear energy.

Space & Technology Collaboration

• ISRO aids ASEAN in satellite tracking, disaster management, and communication tech.
• India’s Digital Public Infrastructure (DPI) model explored for ASEAN fintech.

Geopolitical Cooperation & Multipolarity

• India and ASEAN emphasize a rules-based Indo-Pacific while avoiding bloc politics.
• India backed ASEAN’s Five-Point Consensus on the Myanmar crisis.

Tourism & Cultural Diplomacy

• Shared religious and cultural ties (e.g., Ramayana Ballet in Indonesia).
• Focus on visa liberalization, spiritual tourism, and education exchanges.

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Trade Imbalance & RCEP Withdrawal

• India faces a $43 billion trade deficit with ASEAN due to unfair trade practices.

• Withdrew from RCEP (Regional Comprehensive Economic Partnership) (2019) over concerns of Chinese goods flooding Indian markets.
• Calls for FTA renegotiation to fix tariff asymmetry and non-tariff barriers remain slow.

Slow Progress in Connectivity Projects

• Delays in connectivity projects due to funding, political instability, and bureaucracy.
• Trilateral Highway stalled by slow execution and unrest in Myanmar.
• Kaladan Multimodal Project suffers from security concerns and stagnation.
• These delays hurt credibility in regional infrastructure development.

Limited Defense Cooperation & ASEAN’s China Tilt

• ASEAN’s security priorities limit deeper defense ties with India.
• Economic dependence on China makes ASEAN hesitant to counter Beijing.
• ASEAN-China trade ($702B in 2023) dwarfs ASEAN-India trade ($122.67B).

Differences in Indo-Pacific Strategy

• India supports ASEAN centrality, but ASEAN remains divided on strategic goals.
• Vietnam and the Philippines back India, while Cambodia prefers neutrality.
• Lack of a unified Indo-Pacific strategy weakens India's engagement.

Myanmar Crisis & Political Differences

• ASEAN prefers diplomatic engagement, while India maintains junta ties.
• India prioritizes border security and connectivity over political pressure.
• India’s military aid to Myanmar (2022) contrasts with ASEAN’s restrictions.

Digital Trade & Data Protection Issues

• India and ASEAN differ on data localization and cybersecurity policies.
• ASEAN supports open digital trade, while India enforces sovereignty rules.
• India’s UPI linkage with Singapore (2023) remains limited to bilateral agreements.

Fast-Track Connectivity for Economic Integration

• Accelerate Trilateral Highway and Kaladan Multimodal Project to boost trade.
• Establish SEZs along corridors to attract investment and manufacturing.
• Engage ASEAN in PPP models to overcome project delays.
• Strengthen air and maritime links with Indonesia, Vietnam, and the Philippines.

Strengthen India-ASEAN Free Trade Agreement (FTA)

• Revise FTA to address India’s trade deficit and non-tariff barriers.
• Push for sector-specific deals in electronics, pharmaceuticals, and green energy.
• Ensure better market access for Indian goods in services, agriculture, and digital trade.
• Secure MRAs for skilled professionals to enhance labor mobility.
• Ensure ASEAN removes discriminatory palm oil import tariffs.

Co-Develop Critical and Emerging Technologies

• Focus on AI, quantum computing, and semiconductor joint development.
• Adapt India’s DPI (Aadhaar, UPI) for ASEAN’s fintech ecosystem.
• Attract ASEAN investment in India’s semiconductor mission.
• Expand space collaboration via ISRO for disaster management and communications.

Expand Maritime Security & Defense Collaboration

• Deepen naval cooperation through joint exercises and intelligence sharing.
• Strengthen Coast Guard ties to counter piracy, illegal fishing, and trafficking.
• Promote Indian defense exports (e.g., BrahMos missiles) under favorable financing.
• Establish an Indo-Pacific Security Forum for structured strategic dialogue.

Foster Supply Chain Resilience & Co-Manufacturing

• Integrate ASEAN into India’s PLI scheme for manufacturing expansion.
• Develop alternative supply chains in semiconductors, rare earths, and pharma.
• Engage ASEAN in India’s SCRI with Japan and Australia.

Expand Renewable Energy & Climate Cooperation

• Lead in green hydrogen, solar, and biofuel projects.
• Establish India-ASEAN Green Energy Parks for joint renewable investments.
• Promote EV battery tech transfers and carbon trading mechanisms.

Promote Cultural & People-to-People Exchanges

• Enhance visa liberalization, flight connectivity, and educational collaborations.
• Expand scholarships and student exchange programs.
• Support digitization of ancient manuscripts and shared heritage.
• Strengthen Nalanda University ASEAN Fellowship for cultural research.

India-ASEAN relations have grown into a comprehensive strategic partnership, but trade imbalances and connectivity gaps persist. Strengthening infrastructure, trade, and cultural links will be key. A proactive Act East Policy can position India as a central partner in ASEAN’s regional architecture.

What are the 11 ASEAN countries?

• ASEAN has 10 countries - Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei Darussalam, Vietnam, Lao PDR, Myanmar and Cambodia.
• East Timor has joined as an observer states, but has not yet become a full-fledged member.

What is South East Asia?

• Southeast Asia is the southeastern part of Asia, located south of China, east of the Indian subcontinent, and northwest of Australia, which belongs to Oceania. It is bordered by East Asia to the north, South Asia and the Bay of Bengal to the west, Oceania and the Pacific Ocean to the east, and Australia and the Indian Ocean to the south.

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