India-ASEAN Relations: Opportunities, Strategies, Areas Of Friction | UPSC

India and ASEAN share a Comprehensive Strategic Partnership (CSP) anchored in geography, economics, and maritime security. Ties span trade, connectivity, defence, digital public goods, energy transition, and people-to-people links, aligning India's Act East Policy with ASEAN centrality and the ASEAN Outlook on the Indo-Pacific (AOIP).

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India–ASEAN relations are crucial for UPSC General Studies Paper III (International Relations) under Polity & Governance / International Relations, topic India and its neighbourhood- relations & regional groupings. It links to India's Act East Policy, Indo-Pacific strategy, trade, connectivity, defence, and diplomacy. Join the UPSC coaching today and boost your preparation.

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What Opportunities does ASEAN Present to India?

Economic and Trade Opportunities: With 650 million people and a GDP of USD 3.2 trillion, ASEAN is India's key financial and trade partner.

• Bilateral trade has reached USD 122.67 billion (2023–24), 11% of India's global trade.
• Singapore is India's largest ASEAN trade partner and 6th largest trade partner (FY 2024-25) with a share of around 3% of India's overall trade & also the top FDI source at USD 14.94 billion. 
• Full utilisation of ASEAN-India FTA (AIFTA) and finalising ASEAN-India Trade in Goods Agreement (AITIGA) can further boost trade and investment. 

Defence Cooperation

• Maritime domain awareness, capacity-building, ship visits, training, and emerging defence exports (BrahMos, prospective Akash) strengthen deterrence and interoperability—scope to expand joint exercises and HADR.

Strategic & Security Engagement

• Convergence on AOIP and India's Indo-Pacific Oceans Initiative (IPOI) enables cooperation on rules-based order, freedom of navigation, disaster relief, and resilient supply chains—while respecting ASEAN centrality.

Connectivity & Infrastructure Integration

• IMT Highway, maritime connectivity, coastal shipping, logistics parks, and border-haats can reduce costs and link India's Northeast with the Mekong sub-region. Multimodal routes can hedge Myanmar risks.

Tech & Energy Cooperation

• Digital public infrastructure (DPI) exchanges, fintech interoperability, cyber norms, semiconductor ecosystems, green hydrogen, critical minerals, and renewable grid interconnections align with ASEAN's digital and energy agendas.

Cultural & People Ties

• Civilizational links, tourism circuits (Buddhist, Ramayana), education and research partnerships, skilled mobility, and diaspora engagement deepen goodwill and soft power.

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Areas of Friction Between India & ASEAN

Trade Imbalance & RCEP Withdrawal

• Perception of asymmetry under AITIGA (tariffs, rules of origin, NTBs) and India's 2019 RCEP exit shape expectations; the ongoing AITIGA review seeks course correction.

Delays in Connectivity Projects

• Myanmar's security situation slows IMT Trilateral Highway work; bridging measures and alternate corridors are needed.

Limited Defence Cooperation & Divergent Strategies

• ASEAN's hedging between major powers, varied capacities, and sensitivities can limit the pace/scope of defence initiatives despite growing interest. (Context from rising but still selective engagements.)

Digital Trade & Data Governance Challenges

• Divergent approaches to data flows, privacy, and standards could complicate deeper digital trade unless interoperable frameworks are developed.

Read The Article Free Trade Agreement - Sansad TV Perspective Here! 

What Strategies Can India Pursue to Strengthen Ties & Assert Leadership in the Indo-Pacific?

Enhance Connectivity (Physical + Digital)

• Physical: Fast-track IMT Highway critical stretches; explore interim multimodal links via Thailand/Vietnam sea routes; integrate ports and coastal shipping; develop last-mile links to India's Northeast; expand air services.
• Digital: Scale DPI partnerships (digital ID, payments, consent frameworks), cross-border QR/remittance pilots, cybersecurity capacity building, and standards cooperation.

Maritime Security & Blue Economy

• Institutionalise AIME-style maritime exercises; white-shipping information exchange; MDA through IFC-IOR linkages; joint HADR; fisheries management; coastal livelihoods; anti-IUU fishing frameworks. (Build on expanding defence ties.)

Sustainability, Resilience & Development Partnerships

• Triangulate climate finance and technology for renewables, green hydrogen, and grid integration; collaborate on disaster-resilient infrastructure and health security; co-develop critical mineral value chains.

Strengthening Institutional & People-Centric Engagement

• Conclude a pragmatic AITIGA upgrade with strong trade facilitation, services/investment workstreams, and MSME e-commerce lanes; expand scholarships, skill visas, mutual recognition of qualifications; city-to-city and state-province partnerships; tourism/e-visa facilitation.

Space for Sustainability

• Offer low-cost satellites, EO data, and climate services (crop, disaster, coastal erosion); build small-sat mission capacity through training, ground stations, and data-sharing to support SDGs and blue-economy management.

Read The Article India-Australia Relations Here!

ASEAN — At a Glance

• About: A 10-member regional group fostering economic growth, peace, and stability in Southeast Asia; champions "ASEAN centrality" in regional architectures.
  Objective: Economic integration, narrowing development gaps, resilience, and a stable, rules-based order (including via AOIP).
  India's Engagement with ASEAN: Dialogue Partner (1992), Summit level (2002), CSP (2022); Plans of Action steer cooperation (2021–25; draft 2026–30).

Read The Article on the East Asia Summit Here!

Indo-Pacific Region (India's Lens)

A free, open, inclusive Indo-Pacific with ASEAN centrality; focus on maritime security, connectivity, resilient supply chains, and sustainable growth under the Indo-Pacific Oceans Initiative (IPOI) aligned with AOIP pillars.

Conclusion

India–ASEAN relations are entering a consolidation phase: upgrading AITIGA, hardening maritime cooperation, de-risking connectivity, and scaling digital-green partnerships. Delivering tangible connectivity and standards-based digital trade—while respecting ASEAN centrality—will determine India's economic depth and strategic weight in Southeast Asia over 2025–30.

Read The Article: Act East Policy of India Here!

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