The Association of Southeast Asian Nations (ASEAN) stands as a cornerstone of regional stability and economic dynamism in the Indo-Pacific. Comprising ten diverse member states – Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam – ASEAN represents a significant economic bloc and a key diplomatic platform. Its strategic location, burgeoning markets, and collective commitment to regional peace and development make it an indispensable partner for major global and regional powers. For India, ASEAN’s significance transcends mere economic calculations; it is deeply intertwined with India’s geopolitical aspirations, economic growth, and security imperatives in a rapidly evolving global landscape.
India’s engagement with ASEAN has undergone a significant transformation, evolving from the initial “Look East Policy” (LEP) launched in the early 1990s to the more proactive and comprehensive “Act East Policy” (AEP) introduced in 2014. This shift reflects India’s recognition of ASEAN not just as an economic gateway to East Asia but as a critical strategic partner in fostering a stable, secure, and prosperous Indo-Pacific. The relationship is multifaceted, encompassing robust economic ties, deepening security cooperation, vibrant socio-cultural exchanges, and active participation in ASEAN-led regional mechanisms. Evaluating ASEAN’s role in the context of India necessitates an examination of these diverse dimensions, highlighting both the successes achieved and the challenges that persist in forging an even stronger partnership.
Historical Trajectory and Policy Evolution
India’s engagement with Southeast Asia is rooted in centuries of shared cultural heritage, trade, and philosophical exchanges. However, modern geopolitical realities prompted a more structured approach. The “Look East Policy” (LEP), initiated in 1991 by Prime Minister P.V. Narasimha Rao, marked a strategic shift in India’s foreign policy. This policy was born out of a confluence of factors: the end of the Cold War, India’s economic liberalization process, and the recognition of Southeast Asia’s phenomenal economic growth and its increasing geopolitical relevance. Initially, the LEP’s primary focus was on enhancing economic engagement – increasing trade, attracting foreign direct investment, and establishing business linkages with ASEAN member states. It aimed to diversify India’s economic partnerships beyond its traditional Western and Soviet-bloc allies, leveraging the dynamism of the East Asian economies.
Over two decades, the LEP successfully laid the groundwork for closer ties, elevating India to a Sectoral Dialogue Partner of ASEAN in 1992, a Full Dialogue Partner in 1996, and a Summit-level Partner in 2002. In 2012, this relationship was further upgraded to a Strategic Partnership. However, recognizing the need for a more comprehensive and proactive approach, Prime Minister Narendra Modi, in 2014, rebranded the LEP as the “Act East Policy” (AEP). The AEP significantly broadened the scope of engagement, moving beyond just economic dimensions to encompass strategic, security, and socio-cultural aspects. It emphasized deeper and sustained engagement with ASEAN and the wider Indo-Pacific region, making the relationship more action-oriented and integrated with India’s broader foreign policy objectives, particularly its vision for a free, open, and inclusive Indo-Pacific. The AEP underscored a commitment to greater physical and digital connectivity, enhanced security cooperation, and stronger people-to-people ties, recognizing ASEAN’s centrality in India’s regional and global outlook.
Economic Partnership: A Cornerstone of Engagement
Economic cooperation forms the bedrock of the India-ASEAN relationship. Bilateral trade has witnessed substantial growth since the initiation of the Look East Policy. From a modest US$2.9 billion in 1993, trade between India and ASEAN surged to over US$110 billion in 2022-23, demonstrating the robust potential that exists. Key commodities exchanged include petroleum products, machinery, chemicals, pharmaceuticals, textiles, and agricultural products. ASEAN is India’s fourth-largest trading partner, while India is ASEAN’s seventh-largest. This growth has been significantly facilitated by the ASEAN-India Free Trade Area (AIFTA). The Agreement on Trade in Goods came into effect in 2010, followed by the Agreement on Trade in Services and Investment in 2014. These agreements aimed to reduce tariffs and non-tariff barriers, liberalize services trade, and promote investment flows, thereby creating a more integrated regional market.
Despite the AIFTA, the full potential of economic integration is yet to be realized. India’s trade deficit with ASEAN has been a persistent concern, prompting calls for a review of the AIFTA to make it more equitable, mutually beneficial, and future-ready. India’s decision in 2019 not to join the Regional Comprehensive Economic Partnership (RCEP), a mega-trade pact involving ASEAN and its other dialogue partners, was a significant development. India cited concerns about its trade deficit, market access for its goods and services, and inadequate safeguards against surges in imports. While this decision meant India missed out on a larger regional trading bloc, it underscored India’s focus on securing its domestic economic interests. Nevertheless, both sides remain committed to strengthening the existing AIFTA framework and exploring new avenues for economic collaboration, including supply chain resilience and digital economy cooperation.
Connectivity initiatives are crucial for enhancing economic integration. The India-Myanmar-Thailand Trilateral Highway is a flagship project aimed at connecting Moreh in India to Mae Sot in Thailand, via Myanmar, significantly improving land connectivity and promoting cross-border trade and tourism. Similarly, the Kaladan Multi-Modal Transit Transport Project in Myanmar seeks to connect India’s eastern ports to Myanmar and then to Northeast India via river and road, providing an alternative route for cargo and reducing logistical costs. Maritime links, including port development and shipping routes, are also being enhanced. Beyond physical infrastructure, digital connectivity is emerging as a vital area of cooperation, with India leveraging its expertise in digital public infrastructure (DPI) to offer solutions and facilitate digital trade, e-governance, and financial inclusion across the region.
Strategic and Security Cooperation
The strategic dimension of India’s relationship with ASEAN is increasingly paramount, driven by shared concerns over regional security, stability, and adherence to international law. India firmly supports “ASEAN Centrality” in the evolving regional architecture of the Indo-Pacific. This principle acknowledges ASEAN’s role as the primary driver of regional security dialogues and cooperation mechanisms, such as the East Asia Summit (EAS), ASEAN Regional Forum (ARF), and the ASEAN Defence Ministers’ Meeting Plus (ADMM-Plus). India actively participates in these forums, using them as platforms to articulate its vision for a free, open, inclusive, and rules-based Indo-Pacific, where sovereignty, territorial integrity, and peaceful resolution of disputes are upheld.
Maritime security is a critical area of convergence. Both India and ASEAN member states share interests in ensuring freedom of navigation and overflight, combating piracy, and addressing traditional and non-traditional maritime security challenges in the Indo-Pacific, particularly in the South China Sea. India has consistently advocated for adherence to the United Nations Convention on the Law of the Sea (UNCLOS) and the peaceful resolution of disputes, a stance that resonates with many ASEAN claimant and non-claimant states. Cooperation includes joint naval exercises, coordinated patrols, information sharing on maritime domain awareness, and capacity building for search and rescue operations and humanitarian assistance and disaster relief (HADR). The ADMM-Plus, in particular, provides a robust framework for practical defense cooperation, with India co-chairing Expert Working Groups on various issues, including maritime security and counter-terrorism.
Beyond maritime security, cooperation extends to counter-terrorism, combating transnational organized crime, and cyber security. India and ASEAN members engage in intelligence sharing, capacity building programs, and joint exercises to address these complex threats. Defence cooperation, on a bilateral level with individual ASEAN members, also encompasses military exchanges, training, and the potential for defence equipment supplies. India’s defence industry, particularly in areas like coastal surveillance and patrol vessels, offers opportunities for collaboration with ASEAN states seeking to modernize their defence capabilities.
Socio-Cultural and People-to-People Linkages
The historical and cultural ties between India and Southeast Asia are profound and enduring, predating formal diplomatic relations by millennia. The spread of Buddhism, Hinduism, and the Sanskrit language from India significantly influenced the art, architecture, literature, and governance systems of many Southeast Asian societies. These deep-rooted connections provide a strong foundation for contemporary people-to-people exchanges.
Educational exchanges form a vital component of this socio-cultural bridge. India offers various scholarships and fellowships to students from ASEAN countries, promoting academic collaboration and fostering a new generation of leaders with a deeper understanding of both regions. Initiatives like the revival of the Nalanda University in India, with support from several East Asian countries, symbolize this shared intellectual heritage and commitment to knowledge. Tourism has also seen significant growth, facilitated by improved air connectivity and visa simplification measures. Indian tourists frequently visit popular destinations in Southeast Asia, while an increasing number of ASEAN citizens are exploring India’s cultural and spiritual sites.
Cultural festivals, youth exchange programs, and parliamentary dialogues further strengthen mutual understanding and appreciation. India’s emphasis on shared values and civilizational links through initiatives like the ASEAN-India Pravasi Bharatiya Divas (Non-Resident Indian Day) and the promotion of ancient connectivity routes resonates deeply within the region. Digital connectivity also plays a growing role in facilitating these exchanges, enabling easier communication, collaboration in creative industries, and the spread of cultural content. These multi-layered interactions contribute significantly to building trust and goodwill, which are essential for sustaining the long-term strategic partnership.
ASEAN-India in the Evolving Regional Architecture
India’s engagement with ASEAN is not limited to bilateral interactions but extends significantly to its participation in ASEAN-led multilateral forums, which are central to the regional architecture of the Indo-Pacific. The East Asia Summit (EAS), comprising the ten ASEAN member states and eight dialogue partners (Australia, China, India, Japan, New Zealand, Republic of Korea, Russia, and the United States), is the premier leaders-led forum for strategic dialogue in the region. India, as a founding member, actively contributes to discussions on political, security, and economic issues of regional and global importance. It uses the EAS platform to advocate for an open, inclusive, and rules-based regional order, emphasizing connectivity, maritime cooperation, counter-terrorism, and sustainable development.
The ASEAN Regional Forum (ARF) is another critical platform for security dialogue and confidence-building in the Asia-Pacific. India’s participation in ARF since 1996 has allowed it to engage in discussions on regional security challenges, promote preventive diplomacy, and contribute to non-proliferation efforts. Furthermore, India’s active role in the ASEAN Defence Ministers’ Meeting Plus (ADMM-Plus) underscores its commitment to practical security cooperation. This platform brings together defence ministers from ASEAN and its eight dialogue partners to discuss regional security issues and conduct joint exercises in areas such as maritime security, counter-terrorism, military medicine, HADR, and peacekeeping operations. India’s contributions to the ADMM-Plus working groups demonstrate its commitment to enhancing interoperability and collective response capabilities.
Beyond these broader forums, sub-regional initiatives like the Mekong-Ganga Cooperation (MGC), launched in 2000, highlight India’s specific focus on mainland Southeast Asia. Comprising India and five ASEAN countries (Cambodia, Laos, Myanmar, Thailand, and Vietnam), MGC focuses on cooperation in tourism, culture, education, and transport. This initiative aims to leverage the historical and cultural linkages between India and the Mekong sub-region to foster greater connectivity and economic development, particularly for land-locked and less developed parts of the region. Through these varied mechanisms, India actively contributes to shaping the norms and institutions of regional governance, reinforcing ASEAN’s central role while projecting its own strategic interests and capabilities.
Challenges and Opportunities
Despite the significant strides made in the India-ASEAN relationship, several challenges persist that require concerted efforts from both sides. One of the primary challenges is the growing influence of China in Southeast Asia. China’s economic prowess, coupled with its Belt and Road Initiative (BRI) and its assertive actions in the South China Sea, presents a formidable presence that India needs to contend with. While India does not seek to counter China directly, it must offer compelling and sustainable alternatives in terms of economic partnerships, infrastructure development, and security cooperation that resonate with ASEAN’s interests and uphold regional autonomy.
Internal dynamics within ASEAN also pose a challenge. The bloc’s consensus-based decision-making process can sometimes lead to slow progress on initiatives, and the diverse interests of its ten member states can make it difficult to forge a unified stance on complex issues. India needs to navigate these complexities with sensitivity and tailor its engagement to the specific needs and priorities of individual ASEAN members while upholding the principle of ASEAN centrality. The full utilization of the ASEAN-India Free Trade Area (AIFTA) also remains an area for improvement, requiring a comprehensive review to address trade imbalances, streamline customs procedures, and enhance market access for Indian goods and services. The withdrawal from RCEP, while a sovereign decision, highlights the need for India to redouble its efforts to deepen bilateral trade and investment relations with individual ASEAN countries and within the AIFTA framework.
However, these challenges are accompanied by significant opportunities. India and ASEAN share a common strategic interest in maintaining a stable, rules-based regional order, particularly in the face of geopolitical uncertainties. Both recognize the importance of freedom of navigation, peaceful resolution of disputes, and the adherence to international law. India’s growing economy, large market, and demographic dividend offer substantial opportunities for increased trade and investment with ASEAN, which can leverage India’s manufacturing capabilities, IT services, and digital public infrastructure. The economic complementarity between India’s service-led growth and ASEAN’s manufacturing prowess can unlock immense potential. Shared cultural heritage and civilizational linkages provide a strong foundation for enhancing people-to-people ties, fostering mutual understanding, and building a reservoir of goodwill. Furthermore, India’s democratic values and pluralistic society resonate with many ASEAN states, offering a unique partnership model in a diverse region.
The digital transformation across the globe presents another significant opportunity. India’s leadership in digital public infrastructure, fintech, and IT services offers immense potential for collaboration with ASEAN countries, many of whom are rapidly digitalizing their economies. India can share its experiences and technologies to foster digital inclusion, cross-border digital payments, and e-governance solutions, thereby creating a new pillar of cooperation that transcends traditional economic and security realms.
The role of ASEAN in the context of India is undeniably pivotal, reflecting a comprehensive and evolving strategic partnership. From the foundational “Look East Policy” to the more dynamic “Act East Policy,” India has consistently recognized ASEAN as the anchor of its engagement with the Indo-Pacific. This relationship is built on a multi-dimensional framework encompassing robust economic ties facilitated by trade agreements and connectivity projects, deepening strategic and security cooperation particularly in the maritime domain, and vibrant socio-cultural exchanges rooted in millennia of shared heritage. ASEAN’s centrality in the regional architecture is a principle firmly supported by India, as evidenced by its active participation in forums like the East Asia Summit and ADMM-Plus, which are crucial for shaping a stable and rules-based regional order.
The partnership with ASEAN is indispensable for India’s aspirations to be a leading power in the Indo-Pacific. It provides India with a crucial platform to address shared challenges such as maritime security, counter-terrorism, and transnational crime, while also fostering economic growth through enhanced trade, investment, and infrastructure connectivity. While challenges such as balancing China’s growing influence, navigating internal ASEAN complexities, and optimizing economic agreements persist, the mutual commitment to overcome these hurdles is evident. The potential for future collaboration, particularly in areas like digital economy, supply chain resilience, and blue economy, remains vast, promising an even deeper integration of interests and capabilities.
Ultimately, the synergy between India and ASEAN is vital for regional peace, prosperity, and stability. Their collaboration is not merely transactional but rooted in a shared vision for an open, inclusive, and rules-based Indo-Pacific, where all nations can thrive. As both India and ASEAN continue to navigate a complex geopolitical landscape, their strategic partnership will undoubtedly play an increasingly significant role in shaping the future of Asia and beyond, reinforcing a model of cooperative multilateralism and sustainable development.