Context:

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

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• ASEAN-India annual summit process began in 2002.
• ASEAN and India celebrated the 30th anniversary last year and the relations between them have elevated to the level of Comprehensive Strategic Partnership (CSP).
  • A CSP is a high level diplomatics and strategic relationship between two countries or entities that signifies a deepening of their cooperation across various sectors.

Highlights of 20th ASEAN-India Summit:

• Theme: ‘ASEAN Matters: Epicentrum of Growth’
• Alignment with Indo-Pacific Initiatives: PM highlighted the alignment between India’s Indo-Pacific Ocean’s Initiative (IPOI) and ASEAN’s Outlook on the Indo-Pacific (AOIP), showcasing the convergence of regional strategies.
• AITIGA Review Urged: PM stressed the importance of expeditiously completing the review of the ASEAN-India Free Trade Agreement (AITIGA), underlining its significance for trade and economic cooperation.
• Maritime Cooperation: India and ASEAN members pledged to enhance maritime cooperation with a focus on:
  • Sharing information and capacity-building.
  • Ensuring maritime safety and security.
  • Promoting sustainable Blue Economy.
  • Enhancing connectivity and infrastructure.
  • Encouraging innovation and eco-tourism.
• The opening of the embassy of India in Timor-Leste has also been announced by the Prime Minister. Timor-Leste is an observer in the ASEAN.

Prime Minister of India presented a 12-point proposal to bolster India-ASEAN cooperation: 

1. Multi-Modal Connectivity and Economic Corridor: Proposing the establishment of a multi-modal connectivity and economic corridor that connects South-East Asia, India, West Asia, and Europe.
2. Digital Transformation: Offering to share India’s Digital Public Infrastructure Stack with ASEAN partners to facilitate digital transformation.
3. Digital Future Fund: Announcing the creation of the ASEAN-India fund for Digital Future, focusing on digital transformation and financial connectivity.
4. Support for Research: Renewing support for the Economic and Research Institute of ASEAN and East Asia (ERIA) to serve as a knowledge partner for enhancing engagement.
5. Global South Advocacy: Calling for collective action to address issues faced by the Global South in multilateral forums.
6. Traditional Medicine Center: Inviting ASEAN countries to join the Global Centre for Traditional Medicine being established by the World Health Organization (WHO) in India.
7. Mission LiFE: Urging collaboration on Mission LiFE, which focuses on a sustainable and eco-friendly future.
8. Affordable Medicines: Offering to share India’s experience in providing affordable and high-quality medicines through Jan-Aushadhi Kendras.
9. Counterterrorism and Cybersecurity: Advocating for collective efforts against terrorism, terror financing, and cyber-disinformation.
10. Disaster Resilience: Inviting ASEAN countries to join the Coalition for Disaster Resilient Infrastructure.
11. Cooperation in disaster management
12. Maritime Safety and Security: Emphasizing the need for enhanced cooperation in maritime safety, security, and domain awareness.

Highlights of 18th East-Asia Summit:

• At the East-Asia Summit in Jakarta, Prime Minister Modi conveyed several key points:
• Free and Open Indo-Pacific: He emphasized the importance of a free and open Indo-Pacific, hinting at China and promoting regional stability.

• South China Sea Code of Conduct: India advocated for an effective South China Sea code of conduct aligned with UNCLOS, promoting rules-based order
• ASEAN’s Central Role: PM underscored ASEAN as central to India’s Act-East Policy and pledged to amplify the voice of the Global South for common interests.

India’s Relationship with ASEAN:

• Central to Act East Policy: ASEAN holds a central position in India’s 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.
• Free Trade Agreement: In 2010, India and ASEAN signed a Free Trade Agreement (FTA) that entered into force. This agreement has facilitated trade and economic cooperation between India and ASEAN nations.
  • The bilateral trade between them was just US$ 9 billion when they had the 1st summit way back in 2002, and now the trade is likely to cross the US$ 150 billion mark in 2023.
• Economic Significance: Collectively, they contribute to 7% of the world’s GDP and represent 26% of the global population, highlighting their substantial combined strength.
• Defence Ties: The 1st ASEAN-India Maritime Exercise took place in May 2023, marking a significant achievement.
  • India and Singapore signed a bilateral agreement that will allow Indian Navy ships logistical support, including refuelling, at Singapore’s Changi naval base located near the disputed South China Sea.
• Key Developments:
  • Maiden Defence Meeting: India and Cambodia co-chaired the inaugural India-ASEAN Defence Ministers’ Meeting in November 2022.
  • Enhancing Partnership: The ASEAN Post Ministerial Conference with India in July 2023 resulted in the adoption of the Annex to the Plan of Action for ASEAN-India Partnership (2021-2025), further strengthening ties.

Challenges in India-ASEAN Relations:

• Strategic Competition: The strategic competiton between the United States and China in the Asia-Pacific region poses a significant challenge for ASEAN.
  • The pressure to choose sides in this rivalry can destablize the region.
• Lack of Strong and Committed Leadership: ASEAN faces a challenge in the form of a dearth of strong and committed leaders who can effectively address the diverse range of challenges within the region. 
  • Many leaders in ASEAN countries are preoccupied with domestic issues, including political, social, and economic concerns.
  • For example, on 1 February 2021 the Myanmar military launched a coup against the civilian government.
• Absence of a Custodian or Central Authority: 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. 
  • For Example: Malaysia, the Philippines and Vietnam have formally disputed a new Chinese map that claims most of the South China Sea as Chinese territory.
• Economic Challenges:
  • Regional Comprehensive Economic Partnership (RCEP): India was part of negotiations to join the RCEP, a mega regional trade agreement involving ASEAN and its FTA partners. 
    • However, India decided not to join the RCEP in 2020 due to concerns about its potential impact on domestic industries. 
    • Inadequate safeguards and lowering of customs duties would have adversely impacted India’s Manufacturing, agriculture and dairy sectors. 
  • Fragmented Markets: ASEAN is not a single market, posing challenges for Indian businesses seeking streamlined trade.
  • 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.
  • Reciprocal Trade and Investment Barriers: ASEAN faces trade and investment barriers in India, such as concerns regarding India’s CAROTAR rules imposed in 2020.
    • CAROTAR (Customs Administration of Rules of Origin under Trade Agreements) Rules, 2020 set guidelines for enforcement of the ‘rules of origin’ for allowing preferential rate on imports under Free Trade Agreements.

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.
  • India and Singapore, for example, have started deeper collaboration in FinTech including interoperability in payment systems.
• Integration of ASEAN Studies: Courses on ASEAN studies should be integrated into school curricula, spanning from primary school to university level.
• Reforming ASEAN Secretariat: Efforts should be directed towards improving the dynamics and functionality of the ASEAN secretariat.
• Revising Funding Policy: Consider revising the policy on funding, moving towards a model where wealthier nations contribute more substantial funding, akin to the United Nations practice.

News Source: The Economic Times