Context: Prime Minister Narendra Modi’s recent visit to Brunei and Singapore highlights India’s renewed focus on its “Act East” policy. This visit underscores the importance of consistent engagement with ASEAN nations on matters of trade, security, and strategic cooperation. While India has historically enjoyed strong ties with ASEAN, recent years have seen a decline in engagement, particularly after India’s withdrawal from the ASEAN-led Regional Comprehensive Economic Partnership (RCEP). Modi’s visit is seen as an attempt to reset these ties and focus on the growing strategic and economic importance of Southeast Asia in India’s geopolitical vision.
Relevance: General Studies Paper II – International Relations
Mains Question: Discuss the strategic and economic significance of India’s engagement with ASEAN. How can India ensure more consistent engagement with ASEAN countries on issues of trade, security, and regional cooperation?
- India’s Act East Policy:
- Prime Minister Modi’s visit to Brunei and Singapore represents India’s commitment to its “Act East” policy, which focuses on strengthening ties with Southeast Asian nations. Modi’s visit to ASEAN countries is the first such outreach by an Indian Prime Minister since 2018, highlighting the need for more frequent diplomatic engagement.
- India has long-standing ties with ASEAN, but recent years have seen a decline in active engagement, particularly after India’s decision to opt out of the RCEP trade agreement in 2019. This decision left a gap in India’s regional trade relations, especially as ASEAN continued to integrate economically with other major global economies like China and the EU.
- Strategic Importance of ASEAN:
- ASEAN’s centrality in the Indo-Pacific region makes it a crucial partner for India in its quest for greater influence and stability in the region. Modi’s visit comes at a time when India seeks to balance its relationships with China and the U.S. while promoting regional security and economic partnerships.
- Singapore, a key ASEAN member, is strategically important for India’s semiconductor supply chain, and Modi’s visit included discussions on expanding cooperation in this sector. Singapore’s advanced electronics manufacturing capabilities make it an essential partner for India’s ambitions in semiconductor manufacturing and technology development.
- Bilateral Cooperation on Trade and Technology:
- Modi’s discussions in Brunei included defense cooperation and space technology, with the renewal of space cooperation agreements. Brunei’s strategic location and its hosting of an ISRO station make it an important player in India’s regional space ambitions.
- Singapore’s role in global electronics and semiconductor manufacturing is critical for India’s push to reduce dependency on China. Modi’s visit also focused on investment in rare earth minerals, de-risking supply chains, and mitigating the impact of U.S.-China trade tensions.
- Trade Decline and Need for Reset:
- India’s trade with ASEAN has grown over the past decade, but trade with specific countries like Brunei has declined. The drop in Foreign Direct Investment (FDI) from Singapore to India further signals the need for renewed efforts to strengthen economic ties.
- The signing of the 2009 ASEAN-India Trade in Goods Agreement (AITIGA) and the 2005 Comprehensive Economic Cooperation Agreement (CECA) with Singapore are critical frameworks that need updating to address modern trade challenges. India’s exit from RCEP has created trade gaps that need to be filled through stronger bilateral agreements with ASEAN nations.
- Geopolitical and Security Cooperation:
- India’s engagement with ASEAN is not limited to trade. Regional security issues, including the South China Sea, Myanmar, and the Quad grouping, are important areas where India and ASEAN can cooperate. India’s commitment to ASEAN’s centrality in the Indo-Pacific security architecture remains strong.
- Modi’s visit also reinforces India’s role in balancing Chinese influence in the region, particularly in defense and space cooperation with ASEAN nations like Singapore and Brunei. India must continue to leverage its strategic partnerships to enhance security cooperation and regional stability.
Conclusion: India’s engagement with ASEAN is vital for both economic and strategic reasons. Prime Minister Modi’s recent visit is an important step toward revitalizing ties with Southeast Asia, but consistent engagement is key to ensuring long-term benefits. Updating trade agreements, focusing on technology partnerships, and enhancing regional security cooperation are essential steps in strengthening India-ASEAN relations. In an increasingly multipolar world, ASEAN represents a critical partner for India’s Indo-Pacific strategy and its efforts to create a balanced regional order.
