Synopsis
India’s Act East policy has been a pivotal strategy in strengthening ties with Southeast Asia, particularly with the Association of Southeast Asian Nations (ASEAN). Prime Minister Narendra Modi’s recent visits to Brunei and Singapore are part of the renewed push to re-engage with the region after a lull in high-level interactions. India’s historical and cultural connections with Southeast Asia go back centuries, but modern ties need recalibration to stay relevant in the current geopolitical landscape. This article delves into how India’s Act East policy is being revitalized, the strategic importance of engaging with ASEAN on trade, security, and regional cooperation, and why a consistent focus on this region is essential. Through strategic investments, collaborative trade agreements, and defense cooperation, India is working to reset its ties with ASEAN in the face of growing global challenges. Furthermore, this article will explore India’s stance on regional security issues like Myanmar, the South China Sea, and its role within the Quad. The analysis concludes by stressing the need for a balanced, sustainable engagement between India and ASEAN to maintain stability and promote development in the Indo-Pacific region.
Introduction
India’s Act East policy has gained renewed significance in the geopolitical landscape of Southeast Asia. First introduced as the Look East policy in 1992 under Prime Minister Narasimha Rao, it aimed to enhance India’s engagement with ASEAN countries and foster deeper economic and strategic cooperation. This policy evolved into the Act East policy in 2014 under Prime Minister Narendra Modi, reflecting India’s intention to take more proactive steps in strengthening relations with its eastern neighbors.
Recent developments, particularly Prime Minister Modi’s visits to Brunei and Singapore, indicate a deliberate focus on this policy in the government’s third tenure. As India seeks to establish stronger ties in Southeast Asia, the importance of ASEAN in India’s broader Indo-Pacific strategy cannot be overstated. The region, with its burgeoning economies and strategic location, represents a key partner for India in terms of trade, investment, security, and diplomacy.
Historical Significance of India-ASEAN Relations
The cultural and historical links between India and Southeast Asia are deep-rooted, dating back over a millennium. These connections are reflected in shared linguistic, religious, and cultural elements, including the spread of Hinduism and Buddhism from India to countries like Indonesia, Cambodia, and Thailand. However, in the modern era, these ties needed reinvigoration. This was first addressed in the early 1990s when India, recovering from an economic crisis, realized the potential of engaging with Southeast Asia, a region experiencing rapid economic growth.
Revitalizing Ties Under the Act East Policy
India’s Act East policy marked a significant shift in its diplomatic focus, emphasizing not only economic cooperation but also security partnerships and people-to-people ties. The policy has since expanded India’s outreach to include all ASEAN member states, as well as other East Asian nations, with an eye on building a comprehensive regional framework.
Prime Minister Narendra Modi’s visits to Brunei and Singapore in 2024 represent the latest efforts to reinvigorate India-ASEAN ties. These visits came at a time when India’s relationship with ASEAN has seen a periodic reset, especially after India’s withdrawal from the Regional Comprehensive Economic Partnership (RCEP) in 2019. The decision to opt-out of the ASEAN-led RCEP, which is one of the largest regional trade agreements globally, created a gap in India’s economic engagement with the region. However, India remains committed to increasing trade and investment with ASEAN countries through bilateral agreements and strategic dialogues.
Economic Cooperation: The Backbone of India-ASEAN Relations
Trade and investment have been central to the relationship between India and ASEAN. Bilateral trade between India and ASEAN has grown significantly in recent decades, doubling over the past ten years. In the fiscal year 2022-2023, trade between the two sides reached approximately $110 billion. However, this growth has been uneven, with countries like Singapore and Indonesia leading the charge while others, such as Brunei, have seen a decline in trade with India.
India’s decision to increase its oil imports from Russia following geopolitical developments in 2022 impacted its trade relations with ASEAN, particularly Brunei. However, this does not mean the ties between India and Brunei are unimportant. During Prime Minister Modi’s visit to Brunei, discussions focused on space cooperation, with Brunei hosting an ISRO station. Both countries also explored the possibility of enhancing energy cooperation, trade, and investment. The renewed engagement highlights India’s interest in maintaining strong relationships even with smaller ASEAN members.
Strategic Security Ties and Regional Stability
India’s Act East policy also prioritizes security cooperation, particularly in the face of China’s growing influence in the region. The South China Sea remains a hotbed of territorial disputes, with several ASEAN members having competing claims against China. India’s strategic interest in this region aligns with its broader Indo-Pacific vision, which emphasizes freedom of navigation, respect for international law, and peaceful resolution of disputes.
India has consistently supported ASEAN centrality in regional affairs and has participated in various ASEAN-led security frameworks, such as the ASEAN Regional Forum (ARF) and the East Asia Summit (EAS). In recent years, India has also increased its defense ties with individual ASEAN countries, including Vietnam, Singapore, and Indonesia, focusing on joint naval exercises, military training, and defense technology cooperation.
During Prime Minister Modi’s visit to Singapore, discussions centered around defense cooperation, particularly in the maritime domain. Singapore plays a pivotal role in the regional security architecture, and the two countries have long-standing defense ties. As China continues to assert its dominance in the South China Sea, India’s engagement with Singapore and other ASEAN members on security matters has become increasingly important.
Technology and Innovation: A New Frontier in India-ASEAN Cooperation
Another key aspect of the Act East policy is technology and innovation. In Singapore, Prime Minister Modi’s discussions focused on semiconductors and the broader electronics supply chain. As India seeks to enhance its technical expertise and reduce dependency on global supply chains dominated by China, cooperation with Singapore presents an ideal opportunity.
India is investing heavily in building its semiconductor industry, which is crucial for technological self-reliance in the digital age. Singapore, with its advanced semiconductor industry, can provide India with the technical know-how and investments required to achieve this goal. Moreover, as the world grapples with supply chain disruptions due to U.S.-China trade tensions, the partnership between India and Singapore could help de-risk the supply chain by diversifying sources of raw materials and production capabilities.
India’s Position on Myanmar and ASEAN’s Role
The political crisis in Myanmar, which began with a military coup in 2021, remains a contentious issue within ASEAN. While some ASEAN members have called for stronger action against the military junta, others, including Myanmar’s neighbors, have taken a more cautious approach. India, as a neighbor and strategic partner of Myanmar, has been carefully navigating its position on the issue.
India’s policy towards Myanmar has been shaped by its strategic interests, particularly in countering insurgent groups in its northeastern states and maintaining stability along its borders. However, India has also expressed its support for a peaceful resolution of the crisis through dialogue. As a key player in the region, India’s position on Myanmar will continue to influence its broader engagement with ASEAN.
Trade Agreements: Reviving Regional Economic Cooperation
One of the key challenges in India-ASEAN relations is the stalled progress on trade agreements. India’s exit from the RCEP in 2019 was a setback, cutting the country off from a large regional free trade agreement. While India has maintained its position on staying out of the RCEP, citing concerns over the impact on its domestic industries, it has also expressed willingness to renegotiate certain bilateral trade agreements with ASEAN members.
Updating the 2009 ASEAN-India Trade in Goods Agreement (AITIGA) and the 2005 Comprehensive Economic Cooperation Agreement (CECA) with Singapore is crucial for revitalizing trade relations. These agreements have been instrumental in facilitating trade between India and ASEAN, but they need to be modernized to reflect the current economic realities.
The Importance of People-to-People Ties
Beyond trade and security, the Act East policy also emphasizes people-to-people ties, which have been a cornerstone of India-ASEAN relations. These ties are manifested in educational exchanges, tourism, and cultural diplomacy. With millions of Indians living and working in Southeast Asia, the Indian diaspora plays a significant role in strengthening bilateral relations.
Educational exchanges, in particular, have been a focus of India’s engagement with ASEAN. India has offered scholarships to ASEAN students through initiatives like the Indian Technical and Economic Cooperation (ITEC) program. These programs not only enhance India’s soft power in the region but also create lasting bonds between future leaders of India and ASEAN countries.
Conclusion
India’s Act East policy has brought renewed focus on Southeast Asia, a region that is critical to India’s strategic and economic interests. By strengthening ties with ASEAN through trade, security, and people-to-people connections, India is positioning itself as a key player in the Indo-Pacific region. However, this engagement must be consistent and forward-looking, addressing both the opportunities and challenges that arise from regional and global developments.
Soumya Smruti Sahoo is a seasoned journalist with extensive experience in both international and Indian news writing. With a sharp analytical mind and a dedication to uncovering the truth, Soumya has built a reputation for delivering in-depth, well-researched articles that provide readers with a clear understanding of complex global and domestic issues. Her work reflects a deep commitment to journalistic integrity, making her a trusted source for accurate and insightful news coverage.
