By Anushree Jois
The External Affairs Minister (EAM or the Minister), Sushma Swaraj, recently concluded her visit to Thailand, Indonesia and Singapore as a part of Indias Act East Policy and to strengthen its ties with the Association of South East Asian Nations (ASEAN). The Ministry has termed the visit as productive.
Three-nation visit
As a part of the visit, the EAM co-chaired and inaugurated think tank events and participated in bilateral talks with her counterparts. Discussions on commerce, security and connectivity retained primary focus. During the five day visit from 4th January to 8th January 2018, the EAM made the best of the visit to forge stronger relations between the countries. The visit to Thailand has received much attention as the nation is set to assume the post of role co-ordinator for India-ASEAN relations from mid-2018. India is keen on deepening its ties with the regional bloc.
During the second leg of the visit, the EAM visited Indonesia. The nation is the biggest of the ASEAN countries and has the largest economy and is Indias strategic partner. The Minister also had the opportunity of meeting ASEAN Secretary-General, Jim Lock Hoi. The last part of the visit to inaugurate the Regional Pravasi Bharatiya Divas of ASEAN, which was themed as Ancient Route, New Journey: Diaspora in the Dynamic ASEAN-Indian Partnership. The Southeast Asian countries are growing economic hubs and as their ally, India has benefited over these years.
Looking East to acting East
Indias present-day relations with the ASEAN is a result of the persistent focus of successive governments on the former Look East policy and the present Act East Policy. During the 1991 financial and economic crisis, India realised the need for closer social, economic and commercial ties and strategic co-operation with regional blocs in the neighbourhood. Relationship with the ASEAN nations came to be forged on the basis of common historic, cultural and ideological backgrounds. It was a move to establish India as a regional and strategic leader and also to counter Chinas dominance in the region.
The Act East policy was introduced by the present government in 2014. The score-old Look East Policy was replaced with a new and proactive outlook. EAM had explained the necessity of such reinvention as India must not only look east but also act east. The policy also embarks to look beyond ASEAN, into Asia-Pacific region as well. Connectivity to South East Asia and the Asia Pacific through Indias northeastern states is also a priority.
India-ASEAN at 25
In 2017, India and ASEAN completed twenty-five years of dialogue partnership, 15 years of summit-level interaction and five years of strategic partnership. Various events have been conducted since last year to commemorate the partnership. The celebration will culminate with a grand commemorative summit in India on 25th January 2018 under the theme Shared values, Common destiny. India is also hosting all ten heads of ASEAN as guests of honour at Republic Day celebrations this year.
Indias relationship with ASEAN has undeniably remained a key area of focus of its foreign policy. It began with India becoming a sectoral partner with ASEAN in 1992, to later becoming its dialogue partner and a summit level partner. The 20th commemorative anniversary celebrations were also held during 2012 as they went on to become strategic partners. As a matter of fact, the new Act East Policy was made official by the Prime Minister at the 12th ASEAN India Summit and the 9th East Asia Summit held in Nay Pyi Taw, Myanmar, in November 2014. Withal India has set up a separate Mission to ASEAN and the EAS in Jakarta in April 2015 with a dedicated Ambassador to strengthen its engagement.
Strengthening relations
The ASEAN is Indias fourth largest trading partner, while India is ASEANs seventh largest trading partner. In 2016-17, the trade with ASEAN comprised of 10.2% of Indias total trade. Indias exports to ASEAN has also increased over the years. Foreign Direct Investments (FDI) into India from ASEAN nations accounts for 17% of the total FDI. The benefit of various Free Trade Area agreements stands reflected in the exponential rise in trade activities.
On the other hand, a lot remains to be completed. As Indias relationship with ASEAN approaches twenty-five years, it is not only necessary to reinvent, but also focus on uncompleted projects. Connectivity with the southeast Asian region continues to be talked about. However, the incomplete India-Myanmar-Thailand trilateral highway, the Kaladan Multimodal Transit and Transport Project and the Moreh, Mandalay Bus Services throw a negative on our ability to timely implement plans. The ASEAN by themselves are export-driven economies and by way of the free trade agreements with India, they are looking at a new market. India continues experience export deficit as it imports more from ASEAN than it exports to the region.
Shared security and prosperity
The Plan of Action (2016-2020) highlights that the partnership will be based on shared peace, progress and prosperity. Both Indian and ASEAN leaders have in the recent past shared ideas of establishing a regional structure based on law, development and prosperity. Even during the recent three-nation visit, EAM highlighted that Indias strategic ties with the ASEAN region need to be primarily focused on 3 Cs, namely commerce, connectivity and culture.
The India-ASEAN region is connected by the Indo-Pacific waters that facilitate maritime trade. India views water connectivity as an optimum mode to conduct trade with ASEAN and Asia-Pacific region. In the recent events, India has highlighted the need for waters to be safe from traditional and non-traditional threats that cause disruption in free movement of people, goods and ideas.
Both India and the ASEAN region have benefitted from entering into free trade agreements. The agreements have enabled a reduction in tariffs over several goods and services bolstering trade activities in the region. There is increased market access. India is looking at ASEAN to market its Make in India initiative. India is also part of ASEANs Regional Comprehensive Economic Partnership which is proposed to cover world 40% of the world trade which is yet to be implemented.
Common challenges of growing economies
The EAM, while addressing the Indian diaspora at the ASEAN-India Pravasi Bharatiya Divas, spoke of common challenges in the region like creating skills for a digital age, generating jobs in the age of disruption, meeting the need of rapid urbanisation, protecting bio-diversity and making the energy sources cleaner.
The challenges highlighted by the EAM are common to growing economies. As the information age sets in, there is more demand for labour with skills-set to handle work electronically. If sufficient training and education are not extended, the economy will have to handle problems arising from unemployment. Development in information and technology unquestionably simplifies and quickens commerce, brings in urbanisation and vastly improves the countrys economy. When unplanned, most often than not, it leads to social instability, population concentration, lack of infrastructure and a potential crisis of basic needs.
India now is a full member of ASEAN Regional Forum and participates in various forums and summits and has been able to assert itself as a reliable ally and a regional power. As India-ASEAN continue their journey onwards, they should not only work towards issues of security, trade and investment but also work together to remain economically stable as they grow to succeed in creating a strong regional structure.
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