ASEAN-India Friendship Year | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Introduction

• India has signed a Free Trade Agreement (FTA) in goods with ASEAN in 2009, followed by an FTA in services and investments in 2014. Additionally, India has a Comprehensive Economic Cooperation Agreement (CECA) with various ASEAN countries, which has resulted in concessional trade and an increase in investments. India has invested more than $40 billion in ASEAN during the same period.
• In 2015-16, trade between India and ASEAN stood at $65.04 billion, which comprises 10.12% of India's total trade with the world. Connectivity is another significant issue, with India working on formalizing its transit agreements and establishing better connectivity infrastructure with the region through land, water, and air, such as the India-Myanmar-Thailand Trilateral Highway and the Kaladan Multimodal Project.
• In terms of security, the ASEAN platform provides India with the opportunity to discuss non-traditional security issues in the Indian Ocean Region (IOR), such as piracy, illegal migration, and trafficking of drugs, arms, and humans, maritime terrorism, which can only be resolved on a multilateral level.
• India has also achieved several diplomatic successes at the ASEAN Regional Forum (ARF), including maintaining ties after its nuclear test in 1998, isolating Pakistan during the Kargil War, and lobbying against Pakistan's entry into the forum until 2002.
• The aggressive rise of China, both economically and militarily, has caused suspicion among countries in the region. This provides an opportunity for India to balance China's influence and gain cooperation in the region.

India’s actions under Act East policy

• India’s Act East Policy, originally an economic initiative, has developed into a comprehensive approach to strengthen ties with Asia-Pacific countries. The policy aims to promote economic cooperation, cultural ties, and strategic relationships.
• India has established institutional mechanisms for dialogue and cooperation with ASEAN, and relations have expanded to encompass security, strategic, political, counterterrorism, and defence collaboration, in addition to economic ties.
• India has participated in various regional mechanisms, including IORA, East Asia Summit, ASEAN Defence Ministers’ Meeting Plus, ASEAN Regional Forum, Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation, Mekong-Ganga Economic Corridor, and the Indian Ocean Naval Symposium.
• India has also strengthened its partnerships with Australia, New Zealand, and the Republic of Korea, and established interactions with the Pacific Island nations and Africa. The policy has also impacted India’s relations with the US and China, aligning with the US pivot to Asia to foster balanced relations and contend with China’s growing assertiveness.
• Additionally, the policy has focused on promoting connectivity with other ASEAN states through Myanmar and Thailand.

Enhancing India-Asean relation further

• The ASEAN nations may offset the loss of the US market by tapping into India's growing domestic demand, driven by a rising middle class. Both ASEAN and India face security challenges posed by terrorism, and it is in their best interest to collaborate in order to promote peace and security in the region.
• ASEAN countries view India, with its large naval forces and nuclear capabilities, as a strategic partner to balance China's expanding power in the region, particularly with the recent withdrawal of US troops from strategic locations. As East Asia faces a decline in working age population, India is entering a phase with a higher share of working age population, which could provide a human resource base for East Asia. 
• India's strength in services, coupled with East Asian specialization in manufacturing, could result in a powerful strategic combination that is mutually beneficial for both sides. India has welcomed the ASEAN Indo-Pacific document and is advocating for an early conclusion to the South China Sea code of conduct by ASEAN and China.

Conclusion

India recognizes the strategic significance of the region and aims to be a regional power. Therefore, it is crucial for India to prioritize strengthening its relationship with ASEAN in all areas to achieve this goal.