20th ASEAN-India Summit

Context:

Recently, the Prime Minister attended the 20th ASEAN-India Summit and the 18th East Asia Summit (EAS) in Jakarta, Indonesia.

Highlights of 20th ASEAN-India Summit: Theme: ‘ASEAN Matters: Epicentrum of Growth’

• PM emphasized alignment between India’s Indo-Pacific Ocean’s Initiative (IPOI) and ASEAN’s Outlook on the Indo-Pacific (AOIP), highlighting regional strategy convergence.
• The PM urged a swift review of the ASEAN-India Free Trade Agreement (AITIGA) for enhanced trade and economic cooperation.
• India and ASEAN committed to bolstering maritime cooperation, focusing on safety, sustainable Blue Economy, connectivity, innovation, and eco-tourism.
• The Prime Minister announced a new embassy in Timor-Leste, an ASEAN observer.

Highlights of the 18th East-Asia Summit: At the East-Asia Summit, PM conveyed several key points:

• Emphasized a free and open Indo-Pacific, implying China, for regional stability.
• Supported ASEAN centrality, advocated a rules-based Indo-Pacific.
• Called for cooperation on global issues like terrorism, climate change, resilient supply chains (food, medicine), and energy security.
• Highlighted India’s climate efforts: ISA, CDRI, LiFE, OSOWOG.

India’s Relationship with ASEAN:

• Central to Act East Policy: Originally conceived as an economic initiative, this policy has expanded to encompass political, strategic, and cultural dimensions. 
• ASEAN Plus Six: India is part of the ASEAN Plus Six grouping, which includes ASEAN member states along with China, Japan, South Korea, New Zealand, and Australia.
  • This forum provides a platform for dialogue, cooperation, and collaboration on various regional and global issues.
• Economic Significance: Collectively, they contribute to 7% of the world’s GDP and represent 26% of the global population, highlighting their substantial combined strength.
• In 2010, India and ASEAN signed a Free Trade Agreement (FTA). This led to an increase in trade and economic cooperation. 
  • The bilateral trade increased from US$ 9 billion (2002) to US$ 150 billion (2023).
• Defense Ties: The 1st ASEAN-India Maritime Exercise took place in May 2023, marking a significant achievement.
  • India and Singapore naval cooperation and logistic exchange agreement.

Challenges in India-ASEAN Relations:

• Strategic Competition: The strategic competition between the United States and China in the Asia-Pacific region poses a significant challenge for ASEAN.
• Lack of Strong and Committed Leadership: A dearth of strong and committed leaders who can effectively address the diverse range of challenges within the region. 
• Unlike the European Union (EU), ASEAN lacks a centralized custodian or authority responsible for overseeing and coordinating the affairs of the 10-nation bloc. 
• Connectivity Issues: Despite initiatives like the India-Myanmar-Thailand Trilateral Highway and the Kaladan Multimodal Transit Transport Project, connectivity challenges in the region persist. Delays in infrastructure development can hinder trade and cooperation.
• Territorial Disputes: Territorial disputes in the South China Sea, involving some ASEAN members and China, can complicate regional security and stability. 
• Economic Challenges:
  • Regional Comprehensive Economic Partnership (RCEP): India decided not to join the RCEP in 2020 due to concerns about its potential impact on domestic industries. 
  • Imbalance Trade: India’s exports to ASEAN increased to US$ 44 billion from US$ 42.32 billion in 2021-22. However, imports jumped to US$ 87.57 billion compared to US$ 68 billion in 2021-22.
  • Fragmented Markets: ASEAN is not a single market, posing challenges for Indian businesses seeking streamlined trade.
  • Reciprocal Trade and Investment Barriers: ASEAN faces trade and investment barriers in India, such as concerns regarding India’s CAROTAR rules imposed in 2020.

Way Forward:

• AITIGA Review: Efforts to conclude the ASEAN-India Free Trade Agreement (AITIGA) review may intensify, particularly in promising sectors like pharmaceuticals, health, cyber, financial, and maritime security domains.
• Collaborative Initiatives: India’s International Solar Alliance (ISA) and Coalition for Disaster Resilient Infrastructure (CDRI) could provide solutions to ASEAN’s challenges.
• Enhanced Partnership: Deepen the Comprehensive Strategic Partnership established in 2022, focusing on diverse sectors such as connectivity, maritime cooperation, digital transformation, trade, and the economy.
• Digital Transformation: Promote digital transformation, including digital connectivity and technology sharing.
• Integration of ASEAN Studies: Courses on ASEAN studies should be integrated into school curricula, spanning from primary school to university level.

News Source: Ministry of External Affairs