Why in News ?
- 47th ASEAN Summit and Related Summits concluded in Kuala Lumpur (2025) under Malaysia’s chairmanship.
- The summit occurred amid rising US–China rivalry and ongoing review of the ASEAN–India FTA (AITIGA).
- India’s engagement with ASEAN gains renewed significance under Act East Policy and Indo-Pacific Vision.
Relevance:
- GS Paper 2 – International Relations: India’s Act East and Indo-Pacific strategy, ASEAN centrality, and balancing amid US–China rivalry.
- GS Paper 3 – Economy: Trade integration, AITIGA review, and supply chain resilience in ASEAN-led frameworks.
Basics: What is ASEAN ?
- Full Form: Association of Southeast Asian Nations.
- Founded: 8 August 1967 (Bangkok Declaration).
- Members (10): Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam.
- Objectives: Promote regional peace, stability, economic growth, and cultural development.
- Secretariat: Jakarta, Indonesia.
ASEAN’s Evolution
- 1967–1976: Political bloc to contain communism.
- 1976–1990s: Regional stability and dialogue mechanisms (Treaty of Amity and Cooperation 1976).
- 2000s onward: Economic integration – ASEAN Free Trade Area (AFTA), ASEAN Economic Community (AEC 2015).
- Present: Second most integrated trade bloc after the EU with 25–30% intra-ASEAN trade.
ASEAN’s Global Role
- Economic Hub: Combined GDP ≈ $3.9 trillion (2024); 5th largest economy globally.
- Demographics: 650+ million population; major manufacturing base and logistics corridor.
- Geostrategic Pivot: Lies at the heart of the Indo-Pacific, central to South China Sea (SCS) security and global supply chains.
US–China Rivalry and ASEAN’s Balancing Act
- Security–Economy Dichotomy:
- US: Traditional security provider (military presence, alliances, AUKUS, Quad).
- China: Largest trading partner for most ASEAN nations.
- Pressure Points:
- South China Sea disputes – esp. with Philippines, Vietnam, Malaysia.
- China’s assertiveness vs. ASEAN’s neutrality principle (“ASEAN centrality”).
- ASEAN’s Strategy: Avoid choosing sides; promote “ASEAN-led” platforms (EAS, ARF, ADMM+).
India–ASEAN Relations: Evolution
- Pre-1990s: Limited engagement due to Cold War alignments.
- 1992: Look East Policy initiated – political & economic outreach.
- 2014: Upgraded to Act East Policy – focus on connectivity, commerce, culture, and capacity-building.
- 2022: 30th Anniversary of Dialogue Relations celebrated as ASEAN–India Friendship Year.
Key Pillars of ASEAN–India Cooperation
a) Connectivity
- India–Myanmar–Thailand Trilateral Highway (IMT): Connects Manipur to Mae Sot (Thailand) via Myanmar.
- Kaladan Multimodal Transit Project: Links Kolkata–Sittwe Port–Mizoram.
- ASEAN–India Connectivity Master Plan 2025: Integrates digital, physical, and people-to-people links.
b) Trade and Investment
- ASEAN–India Trade in Goods Agreement (AITIGA) – signed 2009, review began 2022 (to conclude 2025).
- Trade Volume (2024): ~$131 billion; ASEAN = India’s 4th largest trading partner.
- Challenge: India’s trade deficit >$40 billion with ASEAN (notably with Indonesia, Malaysia, Thailand).
- Reason: Low tariff advantage, Rules of Origin misuse, non-tariff barriers.
c) Strategic & Security Cooperation
- Defence dialogues: ADMM-Plus, East Asia Summit, Indian Navy exercises with Singapore, Vietnam, Indonesia, Philippines.
- Maritime Security: Cooperation on freedom of navigation, anti-piracy, and SCS norms.
- Counterterrorism & Cybersecurity: ASEAN-India Centre, ASEAN Regional Forum collaboration.
d) Cultural & Civilizational Links
- Shared Buddhist heritage, linguistic ties, and diaspora networks.
- Initiatives like ASEAN–India Network of Think Tanks and Scholarship Programs deepen soft power ties.
India’s Strategic Stakes in ASEAN
- Economic Diversification: Reduces overdependence on China.
- Indo-Pacific Strategy: Ensures open, inclusive maritime commons.
- North-East Integration: Enhances regional development and connectivity.
- Geoeconomic Leverage: Platforms like BIMSTEC, BBIN, IORA complement ASEAN linkages.
- Supply Chain Resilience: Alternative to China-led networks (aligns with Indo-Pacific Economic Framework – IPEF).
Comparison: ASEAN vs Other Regional Blocs
| Group | Members | Nature | India’s Engagement |
| ASEAN | 10 SE Asian states | Economic & security integration | Sectoral & strategic partner |
| SAARC | 8 South Asian states | Political, stagnant due to India–Pakistan issues | Non-functional |
| BIMSTEC | 7 Bay of Bengal states | Compact, functional | Key focus post-SAARC |
| BBIN | 4 (Bangladesh, Bhutan, India, Nepal) | Connectivity & trade | Sub-regional cooperation |
| CPTPP | 11 Pacific economies | High-standard FTA | Potential future option for India |
Lessons from ASEAN for India
- Consensus-based gradualism works – incremental trust-building over decades.
- Economic integration precedes political unity – unlike SAARC’s security-first failure.
- Institutional continuity and centrality sustain credibility.
- Compact regional frameworks (BIMSTEC/BBIN) may yield faster results than large blocs.
- Balance of power diplomacy – ASEAN’s neutrality offers model amid US–China competition.
Way Forward for India
- Complete AITIGA Review to correct trade asymmetry.
- Deepen Supply Chain Integration via digital trade, logistics, and fintech cooperation.
- Strengthen Defence Ties through joint maritime patrols and technology transfers.
- Accelerate Connectivity Projects in NE region with timelines.
- Pursue Multi-Alignment: Engage ASEAN-led forums while maintaining strategic autonomy.
- Explore CPTPP Accession after domestic readiness.
- Champion ASEAN Centrality within the Indo-Pacific architecture.
Conclusion
- ASEAN remains pivotal for India’s Act East and Indo-Pacific vision.
- Amid US–China contestation, ASEAN is both arena and actor shaping Asian geopolitics.
- For India, sustained engagement with ASEAN through economic pragmatism, strategic partnerships, and connectivity will be crucial to emerge as a regional leader in a multipolar Asia.
