Indian Council of World Affairs

Dr. Father Joseph CC, Vice Chancellor, Christ University,

HE Consul General of Malaysia, Chennai – Chair of ASEAN and ADMM

Students and Friends,

It is my pleasure to address the International Conference on ‘A Decade of Act East Policy: Impact on India-ASEAN Relations and Regional Dynamics’ organized by the close MoU partners of the Indian Council of World Affairs – Christ University, Bangalore and Chennai Centre for China Studies (C3S). I congratulate them for this initiative to mark the ten years of India’s Act East Policy - a key pillar of India’s foreign policy goals and objectives in its neighbourhood, extended neighbourhood and beyond – and to take stock and chart the way forward.

Introduction

India initiated the Look East Policy, the precursor of the Act East Policy, in 1991 as primarily an economic diplomacy tool to build ties with Southeast Asia. The 90s was a period when economic liberalization processes began in many parts of the world post-Soviet collapse. India too embarked on wide-ranging economic reforms to open up its economy post-1991 crisis. Many South East Asian countries which hitherto saw dramatic economic growth however experienced a severe financial crisis in the late 90s. It was this economic turbulence of the 90s that provided the backdrop for renewed ties between India and the ASEAN region through the Look East policy. The 90s saw India transition from a sectoral dialogue partner to a full dialogue partner of ASEAN, with the launch of the India-ASEAN Summit in 2002 which sought to operationalize the dialogue relations.

In 2014, when Prime Minister Shri Narendra Modi came to power, he felt that India needed to play a more proactive role in all sectors of cooperation with the South East Asian countries and beyond in consonance with its aspirations to play a larger role in regional and global politics as well as its growing economic strength. He, thus, brought the rejuvenated “Act East” Policy.

As compared to the Look East Policy, the Act East Policy is more action-oriented with an expanded area of cooperation including culture, politics, security and defense, maritime, and space. The Act East Policy also redefined the meaning of “east” by expanding the geographical coverage from Southeast Asia to include East Asia, Northeast Asia, Oceania and Indo-Pacific, at large. Southeast Asia however remains “central” to India’s Act East Policy. India’s Act East Policy has been welcomed by ASEAN as being complementary to ASEAN Community building efforts.

To further strengthen relations with ASEAN and bilateral relations with the countries of the ‘East’ in the pursuit of shared objectives of ensuring peace, security, stability and development is the overarching objective of the Act East Policy. The objectives of Act East Policy synchronise and harmonise with all India-ASEAN engagements and bilateral/multilateral relationships in the region by reiterating ASEAN centrality.

ASEAN centrality implies that unanimous decisions of the ASEAN countries will hold ground in matters pertaining to their region and that this will be acceptable to their partners from outside the ASEAN region. It is hoped that, in taking such unanimous decisions, ASEAN countries will take into account the views and concerns of other countries with legitimate interests in the region through dialogue. The importance of ASEAN centrality stems from ASEAN’s inherent dilemma owing to the strategic rivalry in the region among great powers and the multiplicity of ASEAN’s partners from near and far abroad. India is supportive of ASEAN centrality. India is also supportive of ASEAN Unity which is important in the context of varying orientation of the different countries of ASEAN in politics, economy and external relations.

Achievements of Act East Policy

(1) India-ASEAN Political Cooperation:

India’s Act East Policy has achieved significant achievements since its launch. India-ASEAN political ties achieved a significant milestone with their relationship being elevated to Comprehensive Strategic Partnership (CSP) in 2022, a celebratory year for the completion of 30 years of their partnership. This was a result of the sustained long-term relationship which began in 1991 and aligns with India’s Act East Policy and ASEAN’s Outlook on the Indo-Pacific (AOIP) of 2019.

The ASEAN Outlook on Indo-Pacific of 2019 synergizes with India’s Indo-Pacific vision and serves as the guiding principle in promoting India-ASEAN cooperation through existing ASEAN-led regional mechanisms in four key areas, viz., maritime cooperation, connectivity, UN Sustainable Development Goals (SDGs) 2030, and economic cooperation and provides the basis for further cooperation to contribute to peace, prosperity and development in the region.

At the last India-ASEAN Summit in Lao PDR in 2024, Prime Minister Modi reiterated India’s support for ASEAN Unity, ASEAN Centrality and ASEAN Outlook on the Indo-Pacific at the Summit. He announced a 10-point plan to further strengthen India-ASEAN relations, focusing on connectivity, trade, digital transformation, climate action, and people-to-people exchanges, among others.

(2) India-ASEAN Defence and Security Cooperation

India’s defence and security cooperation with ASEAN countries is a recent and growing feature of its ties with the region. India’s response to ASEAN’s security challenges is based on mutual understanding, emphasising collaboration, capacity building, and adherence to international norms. By fostering trust and aligning with ASEAN’s priorities, India is a reliable partner in addressing the region’s evolving security challenges while reinforcing a free, open, inclusive, and rules-based Indo-Pacific region —incorporated as principles of India’s Indo-Pacific Oceans Initiative of 2019.

(i) Geopolitical and Territorial Dimension

One of the significant security challenges facing ASEAN is the competing claims over the South China Sea (SCS) involving China’s “Nine-Dash Line” overlapping with the territorial waters of Viet Nam, the Philippines, Malaysia, and Brunei. The militarization of disputed islands by China has increased tensions and risks of confrontation. Such territorial tension has risked the passage of India’s commercial shipping in the disputed SCS region. Strengthening maritime security in the region, especially SCS, has been India’s security concern in reinforcing maritime rights and international laws under UNCLOS 1982. India and ASEAN have also been supporting the full and effective implementation of the Declaration on the Conduct of the Parties in the South China Sea (DOC).

As part of India’s Security and Growth for All in the Region (SAGAR) maritime vision, India has actively engaged in capacity-building programs with ASEAN naval forces and joint exercises like with Singapore held biannually since 1994 – last in 2023 and the one held with 7 ASEAN countries —Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand and Viet Nam - in 2023 in the South China Sea, The 5^th Army Exercise with Viet Nam was held in 2024 in Ambala and Chandimandir in India and the 9^th India Indonesia Joint Special Force Exercise Garuda Shakti was held in 2024 in Indonesia. Also, India has a bilateral agreement with Singapore of 2017 which allows Indian naval ships limited logistical support including refuelling at Changi Naval Base. And, of course, there have been regular port calls in South East Asian countries including Philippines, Indonesia, Vietnam and others. India is also looking at increasing its defense exports to the countries of the region, including the supply of the joint India-Russia cruise missile Brahmos to the Philippines.

India is also cooperating with ASEAN in the space sector, including establishing Tracking, Data Reception and Processing Stations in Viet Nam and Indonesia. India and Brunei also agreed to further strengthen space cooperation during PM Modi’s visit to Brunei in 2024.

(ii) Non-Traditional Security Threats

In addition to traditional security challenges, non-traditional security challenges are increasingly becoming an area of cooperation under the Act East Policy.

India is a ‘first responder’ to send aid to its partners in humanitarian crises and natural disasters, for instance, ‘Operation Sadbhav’, to ASEAN nations affected by Cyclone Yagi in September 2024. Another achievement under the Comprehensive Strategic Partnership is India’s supply of COVID-19 vaccines to ASEAN countries under its Vaccine Maitri initiative.

Within the framework of ASEAN Defense Ministers Meeting (ADMM) Plus, both sides are actively participating in activities such as the Initiative for Women in UN Peacekeeping Operations and the Initiative for Marine Plastic Pollution Response. India and Indonesia co-chaired in ADMM+ Expert Working Group on HADR for 2020-2023.

Further, under ADMM+, several dialogues and capacity-building programs have been held to address cyber threats in ASEAN nations, which face limited cybersecurity infrastructure and expertise in many ASEAN nations. India can fill this gap.

India also participated in the ADMM+ Expert Working Group on Counter-Terrorism in 2024, focusing on emerging threats, such as the use of drones and AI in terrorism. India has supported the establishment of counter-terrorism centres and training facilities in ASEAN nations to address local and regional challenges.

ASEAN nations also participate in India’s climate-friendly global initiatives like International Solar Alliance, Global Biofuel Alliance, Coalition for Disaster Resilience Infrastructure, and One Sun One World One Grid Initiative.

(3) India-ASEAN Economic Cooperation

India’s ASEAN policy believes in PM Modi’s ‘Sabka Saath Sabka Viswas’ (‘Everybody Together Everybody’s Trust’). India opted out of the Regional Comprehensive Economic Partnership (RCEP) in 2019, citing concerns over trade deficits, lack of safeguards, and potential harm to domestic industries.

The Framework Agreement on Comprehensive Economic Cooperation  signed in October 2003 led to the creation of ASEAN-Indian Free Trade Area—composed of Agreement of Trade in Goods, signed in 2009, Agreement of Trade in Services in 2014, and Agreement on Investment in 2014. India-ASEAN trade crossed US$ 130 billion in 2023. FDI from India increased from US$ 2.04 billion in 2022 to US$ 5.63 billion in 2023. Notable efforts have been made to enhance private sector engagement by re-activating the ASEAN-India Business Council (AIBC).

To strengthen cooperation in connectivity between ASEAN and India, the 2024 India-ASEAN Summit committed to bringing synergies between ASEAN’s Master Plan on ASEAN Connectivity (MPAC) 2025/the ASEAN Connectivity Strategic Plan (ACSP) and India’s connectivity initiatives in the region under the Act East Policy and SAGAR. These initiatives will ensure seamless connectivity for improved trade and commerce in the Indo-Pacific.

Both sides are cooperating on emerging technologies, including Artificial Intelligence (AI), Blockchain technology, Internet of Things (IoT), Robotics, Quantum Computing, and building and strengthening the startup ecosystem with special emphasis on digital connectivity and financial technology. They launched the India-ASEAN Fund for Digital Future, which involves funding and supporting joint activities in these areas.

In the energy sector, the ASEAN Plan of Action for Energy Cooperation 2021-2025 aligns with India’s renewable energy priorities and will enhance the energy supply chain between the two.

The Way Forward

I would now like to highlight steps that can be taken to take the relationship forward.

(i)   On political Cooperation: 

1. Both sides need to look carefully at devising the new India-ASEAN Plan of Action (2026-2030). This is important as the Action Plan will guide both sides in realising the full potential of the India-ASEAN Comprehensive Strategic Partnership over the next five years. 
   
   
2. Promoting practical cooperation, especially in the four priority areas identified in the ASEAN Outlook on the Indo-Pacific (AOIP), with ASEAN-led mechanisms needs further work. Specific areas/projects need to be identified.
   
   
3. India’s Indo-Pacific Oceans Initiative (IPOI) and ASEAN’s AOIP have to be taken forward synergetically for inclusive and sustainable regional development.
   
   
4. The two sides will also have to make efforts to materialize the implementation of the India-ASEAN Joint Statement on Cooperation on the ASEAN Outlook on the Indo-Pacific for Peace, Stability and Prosperity in the Region adopted in 2021, as well as the India-ASEAN Joint Statement on Maritime Cooperation of 2023. 
   
   

(ii) On Security Cooperation: 

1. India and ASEAN can strengthen their Indo-Pacific strategy with a greater focus on maintaining good order at sea through cooperation in combating organized crime, counter-piracy and building capability and cooperation in Maritime Domain Awareness. 
   
   

(iii) On economic cooperation: 

1. India needs to relook into the increasing trade deficit in favour of ASEAN from a trade loss of 7 per cent in 2017 to a loss of 44 per cent in 2023.
   
   
2. To promote mutual growth and development of ASEAN and India, exploring synergies within regional and sub-regional frameworks is critical, such as IORA, BIMSTEC and MGC.
   
   
3. Other potential areas of cooperation include India inviting ASEAN nations to join the Chennai-Vladivostok Shipping Corridor and the India-Middle East Economic Corridor to build South East Asia-India-West Asia-Europe connectivity.
   
   
4. India can extend its semiconductor collaboration with Malaysia, Indonesia and Vietnam, which are making a mark in the semiconductor market in the context of the US-China semiconductor rivalry.
   
   
5. ASEAN countries can participate in the Global Centre for Traditional Medicine established by WHO in India.
    

To conclude, over the last ten years since the launch of the Act East Policy, there has been a full spectrum growth in our relationship with the South East Asian countries and ASEAN. We perceive an enhanced appreciation and understanding on either side of each other’s security concerns and developmental aspirations as also an enhanced willingness to cooperate. There has been a revival on either side of interest and appreciation of India’s historical linkages of the ancient & medieval period with the countries of South East Asia, which provides a basis for building strengthened cultural affinity, and has also provided the basis for ties in archaeological conservation. The welfare of the Indian diaspora in these countries especially Malaysia and Singapore, the full assimilation of the people of Indian origin in their countries of citizenship, is of key interest to India and the Government needs to be proactive in taking this up with these countries from time to time. Efforts are being made across the board to give an impetus to cultural ties, including education. It is also very important to make efforts to cooperate to fight against organized crime, drug trafficking, dark shipping, goods and arms smuggling, and scam centres. India’s development partnership initiatives in the region are appreciated and need to be scaled up and tailored as per the requirements of the countries of the region and as per mutual capabilities. Public Health and medicine is an area of cooperation with wide scope for growth. India’s Act East Policy also has to be dovetailed with its vision of the Global South. India is appreciative of the participation of leaders from the region in its Voice of Global South Summit initiative. In short, there is a full agenda to take our ties further forward. 

I am sure the discussions at this conference will come up with many useful observations and suggestions. I hope that the students will energetically contribute to these discussions. I wish all the speakers all the best and I look forward to continued cooperation with Christ University and C3S.

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