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ASEAN-INDIA AND EAST ASIA SUMMIT

14th October, 2024

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Context:

  The Prime Minister of India recently visited Laos to participate in the 21st ASEAN-India Summit and the 19th East Asia Summit. 

Details

During the summit, leaders discussed how India and ASEAN could work more closely together. The discussions focused on connectivity, both physical and digital, between India and ASEAN. India already has direct flights with seven ASEAN countries and hopes to add two more soon.

The Prime Minister of India presented a 10-point plan to boost connectivity

  1. Celebrate 2025 as the ASEAN-India Year of Tourism with a budget of $5 million for joint activities.
  2. Mark the 10th anniversary of the Act East Policy with events like Youth Summits and Start-up Festivals.
  3. Organize the ASEAN-India Women Scientists Conclave.
  4. Double scholarships at Nalanda University and add more at Indian agricultural universities.
  5. Review the ASEAN-India Trade in Goods Agreement (AITIGA) by 2025.
  6. Allocate $5 million to enhance disaster resilience.
  7. Start a Health Ministers’ track to improve health resilience
  8. Establish an ASEAN-India Cyber Policy Dialogue for better digital security.
  9. Host a workshop on Green Hydrogen.
  10. Launch the ‘Plant a Tree for Mother’ campaign to encourage climate resilience.

Future Plan of Action (2026-2030)

The leaders agreed to create a new ASEAN-India Plan of Action for 2026-2030 to strengthen their partnership. Two joint statements were adopted:

  1. Strengthening Partnership: This focuses on enhancing peace, stability, and prosperity in the Indo-Pacific.
  2. Advancing Digital Transformation: This statement acknowledges India’s role in digital public infrastructure.

About The Association of Southeast Asian Nations (ASEAN)

  • It was established in August 1967 with the signing of the Bangkok Declaration by the founding members: Indonesia, Malaysia, the Philippines, Singapore, and Thailand. Over the years, it expanded to include Brunei (1984), Vietnam (1995), Laos and Myanmar (1997), and Cambodia (1999), pushing up the ten current member states.
  • It aims to promote economic growth, social progress, and cultural development in the region while promoting regional peace and stability through respect for justice and the rule of law.
  • The organization operates on several key principles such as mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity of all nations; non-interference in the internal affairs of one another; and peaceful settlement of disputes.
  • ASEAN Summit is the highest policy-making body in ASEAN, comprising the heads of state or government of member states. The summit is held twice annually.
  • ASEAN Charter entered into force in December 2008 to provide a legal and institutional framework for ASEAN, it codifies ASEAN norms, rules, and values, and sets clear targets for the organization.
  • The secretariat is located in Jakarta, Indonesia, the ASEAN Secretariat supports the implementation of ASEAN policies and programs.

About The East Asia Summit (EAS)

  1. The EAS was established in 2005 as a platform for dialogue among the leaders of East Asia, Southeast Asia, and neighbouring regions.
  2. Initially, the summit included 16 countries: the ten ASEAN member states (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam), along with Australia, China, India, Japan, New Zealand, and South Korea.
  3. In 2011, the EAS expanded to include the United States and Russia, bringing the total membership to 18 countries.
  4. The EAS is held annually, usually in conjunction with the ASEAN Summit. It is a leader-led forum, meaning that heads of state or government from member countries participate. The chairmanship of the EAS rotates annually among the ASEAN member states.

India and ASEAN Relations

India and Southeast Asia have shared cultural, religious, and trade links for centuries, dating back to ancient times when Indian traders and scholars travelled to Southeast Asia.

Formal relations began in 1992 when India adopted its “Look East Policy” and became a sectoral dialogue partner of ASEAN. This relationship was elevated to a full dialogue partnership in 1996 and further to a strategic partnership in 2012.

Key Areas of Cooperation

  1. The ASEAN-India Free Trade Area (AIFTA) was established in 2010 and has boosted trade and investment flows between India and ASEAN countries. In 2022-23, bilateral trade reached approximately USD 131.5 billion.
  2. The India-Myanmar-Thailand Trilateral Highway and the Kaladan Multi-Modal Transit Transport Project to enhance connectivity and economic integration.
  3. India and ASEAN have a Comprehensive Strategic Partnership to focus on peace, stability, and prosperity in the region.
  4. Both parties collaborate on maritime security, including joint naval exercises and efforts to combat piracy and ensure freedom of navigation in the Indo-Pacific region.
  5. India offers scholarships to ASEAN students and has established initiatives like the ASEAN-India Network of Universities to promote academic collaboration.
  6. Various cultural exchange programs, such as the ASEAN-India Music Festival and the ASEAN-India Artists’ Camp, foster mutual understanding and cultural ties.

Challenges

  • Despite growing trade volumes, there are concerns about trade imbalances between India and ASEAN countries. Both sides face non-tariff barriers that hinder smooth trade. India’s decision to opt out of the Regional Comprehensive Economic Partnership (RCEP) has raised questions about its commitment to regional economic integration.
  • The territorial disputes in the South China Sea pose a challenge to regional stability. India supports ASEAN’s efforts to resolve these disputes peacefully, but the situation remains a point of conflict. ASEAN countries find themselves balancing relations between major powers like China and the United States, navigating these dynamics is complex for India.
  • Differences in digital infrastructure and technology adoption levels between India and ASEAN countries can restrict digital connectivity and economic integration.
  • Both India and ASEAN face increasing cybersecurity threats. Cooperation in this area is essential but challenging due to varying levels of technological advancement and regulatory frameworks.

Way Forward

  1. Both sides should work towards upgrading the ASEAN-India Trade in Goods Agreement (AITIGA) to encourage mutual investments in key sectors such as manufacturing, services, and infrastructure that can boost economic ties. Simplifying customs processes, harmonizing standards, and reducing regulatory disparities can promote smoother trade.
  2. Both sides should ensure smooth collaboration on maritime security, including joint naval exercises and efforts to combat piracy; this can ensure freedom of navigation in the Indo-Pacific region. Regular defence conferences and exchanges can enhance mutual understanding and cooperation in addressing common security challenges.
  3. Supporting digital infrastructure and cooperation in the digital economy can bridge the digital divide and promote inclusive growth.
  4. Facilitating visa procedures and enhancing connectivity can attract more tourists from both regions.
  5. Enhancing cooperation in cybersecurity through joint initiatives and capacity-building programs can help address common threats. 
  6. Collaborating on climate change mitigation and promoting sustainable development practices can ensure long-term environmental sustainability. 

Conclusion

The relationship between India and ASEAN is characterized by deep historical ties, robust economic and strategic cooperation, and a shared vision for regional peace and prosperity. As both parties continue to navigate challenges and explore new areas of collaboration, the ASEAN-India partnership is expected to play a crucial role in shaping the future of the Indo-Pacific region. 

Must Read Articles: 

ASEAN-India Trade

Source: 

Livemint

The diplomats

PRACTICE QUESTION

Q.What are the main challenges faced by India and ASEAN and how can these challenges be addressed to achieve a more balanced and mutually beneficial trade relationship? (150 words)