Context:
India’s Prime Minister recently unveiled a 10-point plan at the 21st ASEAN-India Summit held in Vientiane, Laos, emphasizing India’s commitment to deepening ties with ASEAN nations. He also took part in the 44th ASEAN summit, which was themed “ASEAN: Enhancing Connectivity and Resilience,” as well as the 19th East Asia Summit. The year 2024 marks the tenth anniversary of India’s Act East Policy, initiated in 2014 to bolster trade, security, and connectivity between India and ASEAN countries, reinforcing India’s strategic interests in the Indo-Pacific region.
Relevance:
GS II: International Relations
Dimensions of the Article:
- What are the Key Facts About the 21st ASEAN-India Summit 2024?
- India’s 10-Point Plan for ASEAN Cooperation
- About Association of Southeast Asian Nations (ASEAN)
What are the Key Facts About the 21st ASEAN-India Summit 2024?
- ASEAN and India account for 7% of the world’s GDP and 26% of the global population.
- Both agreed to collaborate on emerging technologies like Artificial Intelligence, Blockchain, Internet of Things, Robotics, Quantum Computing, and 6-G.
- A joint statement was issued to advance digital transformation, focusing on digital infrastructure, fintech, and cybersecurity.
- India will share its digital public infrastructure expertise, such as Aadhaar and UPI, with ASEAN nations.
- India-ASEAN trade has doubled over the last decade, reaching over USD 130 billion.
- India’s trade deficit with ASEAN increased to USD 44 billion in FY23 from USD 8 billion in FY13.
- India ranks as ASEAN’s sixth-largest trading partner and eighth-largest source of FDI among ASEAN Dialogue Partners.
- Some ASEAN countries and India have begun trading in local currencies, with Malaysia leading the way.
- Total investments in India-ASEAN Global Value Chains surpassed USD 125 billion from 2000 to 2023.
- The Reserve Bank of India joined Project Nexus with ASEAN in June 2024, enabling real-time cross-border transactions between India’s UPI and Singapore’s PayNow.
- Both sides agreed to further enhance the ASEAN-India Comprehensive Strategic Partnership for peace, stability, and prosperity, aligned with the ASEAN Outlook on the Indo-Pacific (AOIP) and supported by India’s Act East Policy (AEP).
- Regarding the South China Sea, both supported the full implementation of the Declaration on the Conduct of Parties and called for an effective Code of Conduct, in line with UNCLOS 1982.
- They also agreed to ensure maritime security, counter-terrorism, and cybersecurity through joint military exercises and naval port calls, such as the ASEAN-India Maritime Exercise.
India’s 10-Point Plan for ASEAN Cooperation
- ASEAN-India Year of Tourism 2025: India will contribute USD 5 million for joint tourism activities.
- Celebrating a Decade of the Act East Policy: Events like Youth Summit, Start-up Festival, Hackathon, Music Festival, and Think Tank initiatives will be organised.
- Women Scientists Conclave: ASEAN-India Science collaboration through a conclave for women scientists.
- Education Scholarships: Replication of Nalanda University scholarships doubling up with additional scholarships for students from ASEAN in Indian agricultural universities.
- Review of Trade Agreement: Reviewing of the ASEAN-India Trade in Goods Agreement by 2025
- Resilience to Natural Disasters: Provision of USD 5 million by India for enhancing the resilience of ASEAN nations to disasters.
- Health Ministers’ Track: Inculcating collaboration through regular exchange between ASEAN and Indian Health Ministers on health resilience.
- Cyber Policy Dialogue: Building ASEAN-India dialogue on digital and cyber resilience.
- Workshop on Green Hydrogen: Support the green energy transition of ASEAN through a green hydrogen workshop
- Climate Resilience Initiative: Engage with and invite ASEAN leaders to India’s ‘Plant a Tree for Mother’ campaign.
About Association of Southeast Asian Nations (ASEAN)
The Association of Southeast Asian Nations (ASEAN) is a regional intergovernmental organization comprising Ten Countries in Southeast Asia.
Members of ASEAN
- Indonesia
- Malaysia
- Philippines
- Singapore
- Thailand
- Brunei
- Vietnam
- Laos
- Myanmar
- Cambodia
ASEAN’s Objectives:
- To promote intergovernmental cooperation and facilitates economic, political, security, military, educational, and sociocultural integration among its members and other countries in Asia.
- To maintain close and beneficial cooperation with existing international and regional organisations.
- To promote regional peace and stability through abiding respect for justice and the rule of law and adherence to the principles of the United Nations Charter.
- To accelerate economic growth, social progress and cultural development for a prosperous and peaceful community of Southeast Asian Nations.
A major partner of Shanghai Cooperation Organisation, ASEAN maintains a global network of alliances and dialogue partners and is considered by many as the central union for cooperation in Asia-Pacific.
- The motto of ASEAN is “One Vision, One Identity, One Community”.
- ASEAN is headquartered in Jakarta, Indonesia.
- 8th August is observed as ASEAN Day.
- In 1967 ASEAN was established with the signing of the ASEAN Declaration (Bangkok Declaration) by its founding fathers: Indonesia, Malaysia, Philippines, Singapore and Thailand.
- Chairmanship of ASEAN rotates annually, based on the alphabetical order of the English names of Member States.
- ASEAN is the 3rd largest market in the world – larger than EU and North American markets.
ASEAN Plus Three
ASEAN Plus Three is a forum that functions as a coordinator of co-operation between the ASEAN and the three East Asian nations of China, South Korea, and Japan.
ASEAN Plus Six
- further integration to improve existing ties of Southeast Asia was done by the larger East Asia Summit (EAS), which included ASEAN Plus Three as well as India, Australia, and New Zealand.
- The group became ASEAN Plus Six with Australia, New Zealand, and India, and stands as the linchpin of Asia Pacific’s economic, political, security, socio-cultural architecture, as well as the global economy.
- This group acted as a prerequisite for the planned East Asia Community which was supposedly patterned after the European Community (now transformed into the European Union).
ASEAN-India Trade in Goods Agreement (AITIGA)
- The ASEAN-India Trade in Goods Agreement was signed and entered into force in 2010.
- Under the Agreement, ASEAN Member States and India have agreed to open their respective markets by progressively reducing and eliminating duties on more than 75% coverage of goods.
ASEAN-India Trade in Services Agreement (AITISA)
- The ASEAN-India Trade in Services Agreement was signed in 2014.
- It contains provisions on transparency, domestic regulations, recognition, market access, national treatment and dispute settlement.
ASEAN-India Investment Agreement (AIIA)
- The ASEAN-India Investment Agreement was signed in 2014.
- The Investment Agreement stipulates protection of investment to ensure fair and equitable treatment for investors, non-discriminatory treatment in expropriation or nationalisation as well as fair compensation.
ASEAN-India Free Trade Area (AIFTA)
- The ASEAN–India Free Trade Area (AIFTA) is a free trade area among the ten member states of the Association of Southeast Asian Nations (ASEAN) and India.
- The free trade area came into effect in 2010.
- The ASEAN–India Free Area emerged from a mutual interest of both parties to expand their economic ties in the Asia-Pacific region.
- India’s Look East policy was reciprocated by similar interests of many ASEAN countries to expand their interactions westward.
- The signing of the ASEAN-India Trade in Goods Agreement paves the way for the creation of one of the world’s largest FTAs – a market of almost 1.8 billion people with a combined GDP of US $ 2.8 trillion.
- The AIFTA will see tariff liberalisation of over 90% of products traded between the two dynamic regions, including the so-called “special products,” such as palm oil (crude and refined), coffee, black tea and pepper.
-Source: The Hindu
