by Pradeep N
INDIA – ASEAN RELATIONS
Comprehensive Academic Notes on History, Agreements, Trade & Key Facts
1. Overview
India and the Association of Southeast Asian Nations (ASEAN) share one of Asia’s most significant and evolving strategic partnerships. Rooted in civilisational linkages and geographic proximity, the relationship has grown into a comprehensive framework encompassing political dialogue, trade, security cooperation, and connectivity.
| ASEAN Members (10): Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam. ASEAN was founded on 8 August 1967 in Bangkok. |
2. Historical Background
2.1 Pre-Modern Civilisational Linkages
• Southeast Asia was historically part of India’s extended cultural zone — often called ‘Greater India’ or ‘Indianised Southeast Asia.’
• Hindu-Buddhist kingdoms such as Srivijaya, Majapahit, Khmer Empire, and Champa were deeply influenced by Indian religious, linguistic, and political traditions.
• Trade routes across the Bay of Bengal connected Indian subcontinent merchants with Southeast Asian ports for millennia.
• Ramayana and Mahabharata traditions, Sanskrit inscriptions, and temple architecture (e.g., Angkor Wat) testify to deep cultural transmission.
2.2 Colonial Period and Post-Independence Cooling
• European colonialism disrupted traditional India–Southeast Asia trade networks from the 16th century onward.
• Post-independence India under Nehru pursued non-alignment and focused initially on South Asian and African engagement under the Bandung spirit (1955).
• India’s relations with ASEAN states were limited in the 1960s–80s, partly due to Cold War alignments, India’s ties with the USSR, and ASEAN’s pro-Western stance.
• India opposed Vietnam’s 1978 invasion of Cambodia, creating friction with Vietnam-sympathising states.
2.3 Look East Policy (1991 Onwards)
• India’s 1991 economic liberalisation marked a pivot — Prime Minister Narasimha Rao launched the Look East Policy (LEP) in 1991–92.
• The LEP was driven by the need to integrate India into East Asian dynamism following the collapse of the Soviet Union.
• India became a Sectoral Dialogue Partner of ASEAN in 1992.
• India was elevated to Full Dialogue Partner in 1996.
• India became a Summit-level partner in 2002 at the 1st India–ASEAN Summit in Phnom Penh, Cambodia.
• India joined the ASEAN Regional Forum (ARF) in 1996 — its first multilateral security engagement in Asia.
2.4 Act East Policy (2014 Onwards)
• Under Prime Minister Narendra Modi, the Look East Policy was rebranded as the Act East Policy (AEP) at the East Asia Summit in Naypyidaw, Myanmar, in November 2014.
• AEP signalled a shift from passive engagement to proactive diplomacy — emphasising connectivity, infrastructure, defence, and digital cooperation.
• The AEP expanded India’s engagement beyond ASEAN to include Japan, South Korea, Australia, and the Pacific Islands.
• India–ASEAN relations were elevated to Strategic Partnership in 2012 and to Comprehensive Strategic Partnership (CSP) in November 2022 at the 19th ASEAN–India Summit in Phnom Penh.
| Key Milestone: The elevation to Comprehensive Strategic Partnership (CSP) in 2022 placed India alongside China, the US, Australia, and Japan as ASEAN’s highest-tier partners. |
3. Important Agreements & Frameworks
3.1 ASEAN–India Free Trade Area (AIFTA)
• Formally known as: ASEAN–India Trade in Goods Agreement (AITIGA)
• Signed: 13 August 2009, Bangkok
• Entered into force: 1 January 2010 (progressively implemented)
• Coverage: Reduced/eliminated tariffs on ~80% of traded goods across approximately 4,000 tariff lines.
• Sensitive lists: India retained sensitive lists for certain agricultural and industrial goods; ASEAN reciprocated.
• Review: AITIGA is currently under renegotiation (initiated in 2022) to modernise provisions, address trade imbalances, and add digital trade and sustainability chapters.
3.2 ASEAN–India Services & Investment Agreements
• ASEAN–India Agreement on Trade in Services: Signed in 2014; covers movement of natural persons, financial services, telecom, and professional services.
• ASEAN–India Investment Agreement: Signed in 2014; provides MFN and national treatment protections for investors.
• Together with AITIGA, these form the ASEAN–India FTA (AIFTA) suite — a three-pillar framework.
3.3 ASEAN–India Plan of Action 2021–2025
• The current overarching strategic roadmap adopted at the 18th ASEAN–India Summit (2021).
• Pillars: Political-Security Cooperation; Economic Cooperation; Socio-Cultural Cooperation.
• Emphasises post-COVID economic recovery, digital economy, health, and green transition.
3.4 ASEAN–India Connectivity Initiatives
• India–Myanmar–Thailand Trilateral Highway: 1,360 km road linking Moreh (India) to Mae Sot (Thailand) via Myanmar. Significant delays; India pushing for completion.
• Kaladan Multi-Modal Transit Transport Project: Connects Kolkata port to Sittwe port in Myanmar via sea, then river and road to India’s northeast. Partially operational.
• ASEAN–India Maritime Connectivity: India proposed an ASEAN–India Maritime Transport Agreement; discussions ongoing.
3.5 ASEAN–India Science & Technology Fund
• Established in 2009 with an Indian corpus of USD 1 million.
• Funds collaborative S&T projects between India and ASEAN member states.
3.6 Defence & Security Frameworks
• ASEAN Defence Ministers Meeting Plus (ADMM+): India is a dialogue partner; participates in expert working groups on counterterrorism, maritime security, humanitarian assistance.
• India–ASEAN Cybersecurity Cooperation: Framework agreed at the 2023 ASEAN–India Summit to cooperate on cyber threats and digital resilience.
• Exercise MILAN: India’s biennial multilateral naval exercise; most ASEAN navies participate.
3.7 Comprehensive Strategic Partnership (2022)
• Adopted at the 19th ASEAN–India Summit, November 2022, Phnom Penh.
• Focuses on: Digital connectivity; Cybersecurity; Green transition; Health security; Space cooperation; Maritime cooperation.
• India announced the ASEAN–India Fund for Green Transition and an initiative on Smart Cities.
| Agreement / Framework | Year | Significance |
| Sectoral Dialogue Partner | 1992 | India’s entry into ASEAN dialogue |
| Full Dialogue Partner | 1996 | Deepened institutional linkage |
| ASEAN Regional Forum (ARF) membership | 1996 | Security multilateralism |
| 1st India–ASEAN Summit | 2002 | Summit-level engagement begins |
| Strategic Partnership | 2012 | Political-security upgrade |
| AITIGA (Trade in Goods) | 2009/2010 | FTA backbone — tariff liberalisation |
| Services & Investment Agreements | 2014 | Completes AIFTA three-pillar suite |
| Act East Policy launch | 2014 | Proactive connectivity diplomacy |
| Comprehensive Strategic Partnership | 2022 | Highest tier — India’s current status |
4. Trade Data & Statistics
4.1 Trade in Goods
India–ASEAN bilateral trade has grown substantially since the AIFTA came into force in 2010, though India consistently runs a trade deficit with the bloc.
| Year | India Exports to ASEAN (USD Bn) | India Imports from ASEAN (USD Bn) | Total Trade (USD Bn) |
| 2009–10 | ~18.1 | ~30.7 | ~48.8 |
| 2014–15 | ~31.8 | ~44.7 | ~76.5 |
| 2019–20 | ~37.4 | ~55.5 | ~92.9 |
| 2021–22 | ~46.3 | ~73.8 | ~122.7 (Record) |
| 2022–23 | ~44.0 | ~87.6 | ~131.6 (Record) |
| 2023–24 (est.) | ~42.0 | ~83.0 | ~125.0 |
| Note: India’s trade deficit with ASEAN widened post-2010 AIFTA implementation — a key point of contention. India is renegotiating AITIGA partly to address this structural imbalance. |
4.2 Trade Composition
India’s Top Exports to ASEAN
• Petroleum products and refined oil
• Electronic components and telecom equipment
• Engineering goods and machinery
• Pharmaceuticals and chemicals
• Cotton yarn, fabrics, and textiles
India’s Top Imports from ASEAN
• Electronic goods and semiconductors (especially from Singapore, Malaysia, Vietnam)
• Palm oil (Indonesia and Malaysia — India is the world’s largest palm oil importer)
• Machinery and electrical equipment
• Chemicals and plastics
• Gold and precious metals
4.3 ASEAN Share in India’s Trade
| Indicator | Approximate Figure |
| ASEAN share in India’s total trade | ~11–12% |
| India’s rank as ASEAN trading partner | 7th largest (2023) |
| ASEAN’s rank in India’s FDI sources | Top 5 |
| India–ASEAN cumulative FDI (2000–2023) | ~USD 117 billion (FDI into India from ASEAN) |
| India FDI into ASEAN (cumulative) | ~USD 15–18 billion |
| India’s palm oil import dependence on ASEAN | ~85–90% of total palm oil imports |
4.4 FDI and Investment
• Singapore is India’s largest FDI source overall (cumulative), channelling investments through its financial hub role — USD 150+ billion cumulative FDI as of 2023.
• Singapore, Indonesia, and Malaysia are ASEAN’s top investors in India.
• India’s outward FDI to ASEAN is concentrated in IT services, pharmaceuticals, and manufacturing in Singapore, Indonesia, and Vietnam.
• India is pushing for greater investment in semiconductor supply chains and electronics manufacturing with Vietnam and Malaysia.
4.5 Digital Economy & Services
• India–ASEAN digital trade and IT services are a growing frontier. India’s IT exports to ASEAN exceed USD 8 billion annually.
• India’s UPI (Unified Payments Interface) has been linked with Singapore’s PayNow since 2023 — a landmark in cross-border fintech.
• India is exploring UPI integration with Malaysia, Thailand, and Philippines.
5. Key Themes in Contemporary Relations
5.1 Connectivity
• India views physical connectivity as the backbone of the Act East Policy — land routes through Myanmar, sea routes via Bay of Bengal, and digital corridors.
• The India–Myanmar–Thailand Highway and ASEAN–India Maritime Connectivity are centrepieces.
• India’s northeast states (the ‘Act East frontier’) are positioned as gateways to Southeast Asia.
5.2 Maritime Security
• The Indo-Pacific framework has reinvigorated India–ASEAN maritime cooperation, particularly in the South China Sea and Malacca Strait.
• India supports ASEAN’s centrality and UNCLOS-based maritime order — implicitly countering China’s South China Sea claims.
• Indian Navy conducts regular coordinated patrols and passage exercises with Singapore, Indonesia, Vietnam, and Philippines.
• India and Vietnam have a significant strategic partnership including defence equipment supply.
5.3 China Factor
• China’s growing influence in ASEAN — through BRI investments, South China Sea assertiveness, and Mekong dominance — is a key driver of India–ASEAN strategic convergence.
• India’s non-membership in RCEP (withdrawn in November 2019) reflects concerns over China’s dominance of the agreement and trade diversion.
• Several ASEAN states (Vietnam, Philippines, Indonesia, Singapore) welcome Indian engagement as a counterbalance, though ASEAN maintains its official neutrality.
5.4 RCEP and India’s Absence
• The Regional Comprehensive Economic Partnership (RCEP), signed in November 2020, includes 10 ASEAN states plus China, Japan, South Korea, Australia, and New Zealand — but NOT India.
• India walked out citing: fears of Chinese goods flooding Indian markets; inadequate safeguards; services liberalisation deficit; and threat to domestic industries.
• India’s absence from RCEP is seen as a major strategic and economic setback in terms of regional integration.
• India has expressed interest in re-joining RCEP but has set conditions around market access parity and safeguard mechanisms.
| RCEP represents about 30% of global GDP and 30% of global population. India’s exclusion limits its access to Asia-Pacific value chains at a critical moment. |
5.5 COVID-19 and Health Cooperation
• India supplied COVID-19 vaccines to several ASEAN nations under the Vaccine Maitri initiative (2021).
• The ASEAN–India Plan of Action 2021–2025 includes a dedicated health security pillar.
• India and ASEAN are developing a framework for pharmaceutical supply chain resilience.
5.6 Climate & Green Economy
• The 2022 CSP includes the ASEAN–India Green Transition Fund to support clean energy transitions in ASEAN LDCs.
• India’s International Solar Alliance (ISA) is actively engaging ASEAN members.
• India and ASEAN are exploring cooperation on green hydrogen, biofuels, and climate finance.
6. Key Facts & Important Points
6.1 Structural Facts
• ASEAN founding year: 1967. India became dialogue partner: 1992.
• India–ASEAN Summit held annually since 2002. 21st Summit held in 2023.
• India is one of only 6 CSP partners of ASEAN (alongside US, China, Japan, Australia, Canada — Canada CSP 2023).
• ASEAN–India Centre (AIC) is located in New Delhi, established 2013 — serves as a research and policy hub.
• India–ASEAN Eminent Persons Group (EPG) guides the long-term vision of the partnership.
6.2 Important Firsts
• 1st India–ASEAN Business Summit: 2002
• 1st ASEAN–India commemorative Summit (10 years): 2012, New Delhi — adopted Vision Statement 2020
• India–ASEAN Year of Tourism: 2012
• 25th Anniversary of Dialogue Partnership: 2017 — Commemorative Summit in New Delhi, first ASEAN–India Summit held in India
• India–ASEAN Startup Festival: Launched 2020
• UPI–PayNow linkage with Singapore: February 2023
6.3 Comparison: India vs. Other ASEAN Partners
| Partner | Status with ASEAN | Trade Volume (approx. 2022) |
| China | CSP (2021) | USD ~975 billion |
| USA | CSP (2022) | USD ~450 billion |
| Japan | CSP (2011) | USD ~250 billion |
| India | CSP (2022) | USD ~131 billion |
| Australia | CSP (2021) | USD ~100 billion |
6.4 Challenges & Criticisms
• Trade Deficit: India’s persistent trade deficit with ASEAN (~USD 40–45 billion annually) fuels domestic opposition to AIFTA and delayed RCEP participation.
• AITIGA Renegotiation: Launched 2022; India seeking better market access for services, tightening rules of origin (to prevent Chinese goods being re-routed via ASEAN), and tariff rebalancing.
• Connectivity Delays: India–Myanmar–Thailand Highway has faced years of delays due to funding, terrain, and political instability in Myanmar (post-2021 coup).
• Myanmar Crisis: The 2021 military coup in Myanmar strained India’s Act East connectivity plans and created a dilemma between human rights concerns and strategic interests.
• Underdeveloped People-to-People Links: Compared to China, India’s cultural and diaspora links with mainland ASEAN remain relatively underdeveloped.
• RCEP Absence: India’s non-membership reduces its relevance in the region’s supply chains and trade architecture.
6.5 India’s Strategic Assets in ASEAN Relations
• Civilisational soft power — Buddhism, Hinduism, and Indian cultural influence across mainland and island Southeast Asia.
• Diaspora — Indian diaspora of ~3.5 million across ASEAN (especially Singapore, Malaysia, Indonesia) provides business and cultural bridges.
• Digital leadership — India’s fintech stack (UPI, ONDC, Aadhaar) is of growing interest to ASEAN digital economy architects.
• Defence supplier — India supplies BrahMos missiles and other defence equipment to Vietnam and Philippines, deepening strategic ties.
• Vaccine and pharmaceutical capacity — critical during COVID-19 and for future health resilience.
7. Notable Positions & Statements
| “ASEAN is at the centre of India’s Act East Policy and at the heart of India’s Indo-Pacific vision.” — PM Narendra Modi, ASEAN–India Summit, 2022 |
| “India and ASEAN are natural partners — bound by geography, history, civilisation, and a shared commitment to peace and prosperity.” — Common theme in ASEAN–India Summit Joint Statements |
8. Quick Reference Timeline
| Year | Event |
| 1967 | ASEAN founded (Bangkok Declaration) |
| 1991 | India launches Look East Policy (PM Narasimha Rao) |
| 1992 | India becomes ASEAN Sectoral Dialogue Partner |
| 1996 | India becomes Full Dialogue Partner; joins ASEAN Regional Forum (ARF) |
| 2002 | 1st India–ASEAN Summit (Phnom Penh); Summit-level engagement begins |
| 2009 | ASEAN–India Trade in Goods Agreement (AITIGA) signed |
| 2010 | AITIGA enters into force |
| 2012 | India–ASEAN Strategic Partnership; Commemorative Summit in New Delhi |
| 2014 | Services & Investment Agreements signed; Act East Policy announced |
| 2017 | 25th Anniversary Commemorative Summit in New Delhi |
| 2019 | India withdraws from RCEP negotiations |
| 2020 | RCEP signed (without India) |
| 2022 | Comprehensive Strategic Partnership (CSP) agreed; AITIGA renegotiation launched |
| 2023 | India–Singapore UPI–PayNow integration; 21st ASEAN–India Summit |
| 2024–25 | AITIGA renegotiation ongoing; CSP implementation underway |
Academic Notes: India–ASEAN Relations | For educational use | dennana.in