The 21st ASEAN-India Summit held last week in Vientiane, Lao PDR, marked a significant milestone in India’s Act East Policy, celebrating a decade of its implementation. Prime Minister Narendra Modi’s participation, his 11th at such a summit, reflects India’s unwavering commitment to strengthening ties with ASEAN nations. The summit focused on evaluating progress made under the ASEAN-India Comprehensive Strategic Partnership and charting the course for future collaboration. The Association of Southeast Asian Nations (ASEAN) comprises ten member countries—Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam—with Timor-Leste joining as an Observer in 2022 and soon to become its 11th member. With a population of 662 million and a combined GDP of $3.2 trillion as of 2022, ASEAN plays a crucial role in regional economic and security dynamics. Established in 1967 with the Bangkok Declaration, ASEAN’s motto “One Vision, One Identity, One Community” drives its initiatives aimed at regional cooperation. ASEAN’s importance to India goes beyond economic ties; it is central to India’s Act East policy. The policy’s strategic focus is on deepening engagement with the Asia-Pacific region to enhance political, economic, and cultural relations. India’s participation in the ASEAN Plus Six framework, which includes China, Japan, South Korea, New Zealand, and Australia, highlights its broader vision for regional integration and cooperation.
Trade has been a cornerstone of India-ASEAN relations. The India-ASEAN Free Trade Agreement (FTA) in goods was signed in 2010, followed by the FTA in services in 2014, which significantly boosted bilateral economic exchanges. In 2023-24, India-ASEAN trade reached $122.67 billion, with ASEAN accounting for 11% of India’s global trade. Despite these numbers, India faces a trade deficit, exporting $41.21 billion worth of goods to ASEAN countries while importing $79.67 billion. This trade imbalance indicates the need for India to recalibrate its economic strategies to harness the full potential of this partnership. Prime Minister Modi emphasized the necessity of revisiting the ASEAN-India Trade in Goods Agreement (AITIGA) to unlock new economic opportunities. His call for doubling the trade volume to over $130 billion underscores India’s intent to play a more active role in the regional economy. The elevation of ASEAN-India relations to a Comprehensive Strategic Partnership in 2022 is a testament to their growing geopolitical significance. Defence collaboration has also gained momentum through the ASEAN Defense Ministers’ Meeting Plus (ADMM+). The first ASEAN-India Maritime Exercise (AIME) in 2023 was a notable step in bolstering maritime security, highlighting shared concerns over regional stability and freedom of navigation in the Indo-Pacific.
Prime Minister Modi’s 10-point plan unveiled at the summit further aligns with ASEAN’s theme of “Enhancing Connectivity and Resilience.” Key initiatives include celebrating 2025 as ASEAN-India Year of Tourism with a $5 million fund for joint activities, boosting scholarships for ASEAN youth at Nalanda University, and initiating projects to enhance disaster and health resilience. These efforts aim to deepen socio-economic ties and fortify India’s strategic presence in Southeast Asia. Cultural ties have always been a bridge between India and ASEAN nations. The announcement of people-centric activities, like Youth Summits and Start-up Festivals, as part of the 10-point plan, underscores India’s focus on fostering cultural and educational exchange. The proposal to organize the ASEAN-India Women Scientists Conclave and double scholarships at Indian universities indicates a commitment to empowering future generations and fostering innovation.
India’s role in advancing digital transformation was also a focal point, with the leaders adopting a joint statement recognizing India’s contribution to digital public infrastructure in the Indo-Pacific. This aligns with India’s vision of harnessing technology for inclusive growth and bridging the digital divide across the region. As the world transitions into what Prime Minister Modi calls the “Asian century,” India-ASEAN relations are poised to play a defining role in shaping Asia’s future. The creation of the new ASEAN-India Plan of Action (2026-2030) and the adoption of joint statements on strengthening their partnership for peace and prosperity signify a long-term strategic vision. India’s emphasis on ASEAN Unity and Centrality, along with its proactive measures in economic, security, and digital spheres, reflect a robust diplomatic approach. As ASEAN and India move forward, the timely review of the AITIGA and initiatives like direct flight connectivity and fintech collaboration are set to drive mutual growth. This evolving partnership not only enhances regional stability but also positions India as a pivotal player in the Indo-Pacific’s geopolitical landscape. Therefore, the 21st ASEAN-India Summit has indeed set the stage for a dynamic phase in India’s Act East Policy. With a comprehensive strategy that includes economic growth, cultural exchange, and strategic defense cooperation, India is reinforcing its role as a key ally in Southeast Asia, ensuring that the ASEAN-India partnership remains resilient and forward-looking in the years to come.
