Prime Minister Narendra Modi’s visit to Kuala Lumpur to attend the 13th ASEAN-India Summit and 10th East Asia Summit from 21 to 22 November 2015 was PM Modi’s second interaction with ASEAN Members, first being at Nay Pyi Taw, Myanmar in November 2014 for the 12th ASEAN-India Summit. He also undertook an official visit to Malaysia on 23 November 2015 and held bilateral dialogue with his Malaysian counterpart Dato Sri Mohd Najib Tun Abdul Razak. PM Modi thereafter paid an official visit to Singapore on 23-24 November 2015 to commemorate the 50th anniversary of bilateral relations and elevate this relationship to strategic partnership. PM Modi’s participation at both the ASEAN-India Summit and the East Asia Summit and bilateral visit and meetings with leaders signifies the importance that India attaches to ASEAN and its role in the region.
India’s historical and civilizational contacts and geographical proximity with nations of Southeast Asia (SEA) portray the significance of the region. The economic miracle of the Asia and inspiring economic growth of some ASEAN countries attached economic viability to the region. The rise of China as economic and military power and its growing foothold in the region attested strategic importance of the region.
India’s ‘Look East’ Asia policy, in 1990s, was premised on economic and political considerations, to focus on her neigbours in the east. The ‘Look East’ policy catalyzed the India’s engagement with SEA nations. India became a sectoral dialogue partner of ASEAN in 1992, which was upgraded to full dialogue partnership in 1996. Since 2002, India had annual Summits with ASEAN. ASEAN and India-ASEAN commemorated the 20th anniversary of dialogue-level partnership and the 10th anniversary of Summit-level partnership under the theme ‘ASEAN-India Partnership for Peace and Shared Prosperity’ on December 20-21, 2012, in New Delhi.
Although, the ‘Look East’ policy accelerated the India’s relations with ASEAN, “rise of a number of new powers in Asia, notably China, the re-balancing or ‘pivot to Asia’ strategy of the United States”1 has entrusted India to adapt to these momentous changes and thereby a re-energised policy, ‘Act East’ unveiled by Prime Minister Modi to harness the opportunities and tackle the strategic challenges.
India’s engagement with SEA nations, while pursuing ‘Act East’ is the manifestation of India’s interaction with the region for millennia and endeavours to rejuvenate the linkages with the region. India is also actively participating in the regional integration initiatives like, East Asia Summit and East Asia Forum and ASEAN Community. India is also part of negotiations on the Regional Comprehensive Economic Partnership Agreement (RCEP), which includes ASEAN and its other five Free Trade Agreement (FTA) partners, Australia, China, Japan, South Korea and New Zealand. The RCEP, which accounts for 24 percent of the global GDP, over 45 percent of the world’s population and almost 30 percent of the world’s output and trade, will be India’s largest trading block.
Evolving Regional Architecture: India and ASEAN
The first ASEAN-India Summit was held in Phnom Penh in 2002 to promote regional peace and stability and foster closer economic and developmental cooperation. Since then, both India and ASEAN have travelled a long way. India-ASEAN trade increased to about $ 76.5 billion in 2014-15 and ASEAN remains the largest investment partner – both for inward and outward flows2. Since 2002, India has annual Summits with ASEAN; along with China, Japan and Republic of Korea have also similar arrangement with ASEAN. India has acceded to the TAC (Treaty of Amity and Cooperation in Southeast Asia).
Source: http://www.asean.or.jp
The signing of the TAC by India in 2003 is recognition of India by ASEAN as a major player in the region and the strong commitment and valuable contribution India has made and is making to regional peace, stability and prosperity3. There are 30 Dialogue Mechanisms cutting across all the sectors including 7 ministerial level meetings4. In 2012, India and ASEAN commemorated 20 years of dialogue partnership and 10 years of Summit level partnership with ASEAN with a Commemorative Summit in New Delhi under the theme ‘ASEAN-India Partnership for Peace and Shared Prosperity’ on December 20-21, 2012. India upgraded its partnership with ASEAN to “Strategic Partnership”.
Trade and Economic Partnership
Trade and economic consideration has been one of the driving forces of India’s engagement with SEA nations. ASEAN has become India's fourth largest trading partner. Trade and investment flows between ASEAN and India gradually increasing but remained relatively low compared with other dialogue partners of ASEAN. The annual trade registered an average growth of 22% per annum in the decade till 2011-12, but has stagnated thereafter.5. The total trade between ASEAN and India has decreased by 5.4 per cent, from US$71.8 billion in 2012 US$67.9 billion in 20136. At the 10th ASEAN - India Summit in November 2012, the Leaders set the target of US$100 billion by 2015 for ASEAN-India trade. According to Ministry of External Affairs, India-ASEAN trade was at approximately US$ 76.52 billion in 2014-157.
India exports product worth US$ 31.8 billion which accounts for 10.55 percent of India’s export in 2014-15, while it was US$ 33.1 billion in 2013-148. Thus India’s export to ASEAN region has declined by 3.99 percent. India imports from ASEAN are gradually increasing thereby the trade balance is negative. In 2014-15, India imported goods worth US$ 43.3 billion9 which was US $ 41.2 billion during 2013-14.
ASEAN accounts for approximately 12.5% of investment flows into India since 2000. FDI inflows into India from ASEAN between April 2007-March 2015 were about US$ 32.44 billion. Whereas FDI outflows from India to ASEAN countries, from April 2007 to March 2015 was about US$ 38.672 billion10.
India nevertheless, is the 10th trading partner to ASEAN, accounting for only 2.7 percent of total ASEAN trade11. The statistics indicates that there are unexplored opportunities for India to increase trade with ASEAN countries. This includes trade in services.
Source: Based on Data provided on http://www.asean.org/
India and ASEAN are constantly engaged in improving their economic relations. At the 2nd ASEAN-India Summit in 2003, the Leaders signed the ASEAN-India Framework Agreement on Comprehensive Economic Cooperation. The Framework Agreement laid a sound basis for the establishment of an ASEAN-India Free Trade Area (FTA), which includes FTA in goods, services and investment. ASEAN and India, in 2009 signed the ASEAN-India Trade in Goods (TIG) Agreement in Bangkok. The signing of the ASEAN-India Trade in Goods Agreement leads the way for the establishment of one of the world’s largest free trade areas (FTA). India- ASEAN FTA, having market of almost 1.8 billion people with a combined GDP of US$ 2.8 trillion, sought to liberalise the trade norms and ease trade barriers.
Palit asserts that “India-ASEAN goods FTA have a specific problem in this regard. Its Rules of Origin (ROO) insist on simultaneous satisfaction of Regional Value Content (RVC) and Change in Tariff Heading (CTH) criteria. None of the other ASEAN FTAs insist on both, but merely ask for satisfaction of either criterion. Simple and easy rules are essential for increasing utilization of FTAs”12. Chandrima Sikdar and Bishwjit Nag in their study stipulates that even India-ASEAN FTA is fully implemented India would experience a 1.07% fall in GDP and a 58.6% fall in employment13. Parthapratim Pal and Mitali Dasgupta also note that India is unlikely to benefit in the short term from the India ASEAN FTA. However, they are in the view that “some advantages for India in the long term, especially if India becomes a hub for service exports to the ASEAN region”14. Palit suggests that it’s important to make domestic industry and businesses active stakeholders in the various trade agreements that India is signing with the ASEAN and its individual members to gains from FTAs. The ASEAN-India Agreements for Trade in Services & Investments signed in 2014 is expected to further enhance trade and benefit India.
ASEAN and India have agreed, at 12th AEM-India Consultations, 23 August 2015, Kuala Lumpur, to review the ASEAN- India Trade in Goods (AITIG) Agreement to ensure that it is trade facilitative and relevant to the current global trading practices. The Ministers endorsed the Scope of the Review of the AITIG Agreement, which includes: i) implementation issues; ii) facilitation measures; iii) to take into account other negotiations on further liberalisation of trade in goods; iv) sharing and exchanging of trade data and; (v) promoting AITIG Agreement to the stakeholders15.
India also has bilateral trade agreements with Singapore, Malaysia and Thailand. With Singapore and Malaysia, India has signed comprehensive economic cooperation agreement on 27th May 2003 and 1st July 2011, respectively. India has framework agreement of trade with Thailand. It is interesting to note that India had trade deficit each year with its trade partners Singapore, Malaysia, Indonesia, Thailand and Myanmar. Therefore, FTA with these countries further deteriorates the trade balance. India must hasten the process of trade negotiations with CLMV countries to exploit ASEAN-India FTA in goods signed in 2009, as only by 2018 the provisions of FTA in goods with Cambodia, Lao PDR, Myanmar and Viet Nam will become operational16 and India has only trade surplus with these countries, to neutralise the trade deficit.
A third Plan of Action (POA), adopted at 13th India-ASEAN Summit, 2015 intends to foster ‘collaboration to strengthen regional financial stability and contribute to reforming the global economic and financial architecture to safeguard the regional and global economies from future crises’17.
Strategic Partnership
ASEAN-India partnership has exceeded the sphere of functional cooperation to cover political and security dimensions, validating David Mitrany’s ‘functionalism theory’ for regional integration18. India participates in a number of consultative meetings with ASEAN under the ASEAN-India Dialogue Relations, which include Summit, ministerial meetings, senior officials meetings, and meetings at expert’s level. India also participates in dialogue and cooperation frameworks initiated by ASEAN, in the ASEAN Regional Forum (ARF), the Post Ministerial Conference (PMC) 10+1, the East Asia Summit (EAS), Mekong-Ganga Cooperation and Bengal Initiative for Multi sectoral Technical and Economic Cooperation (BIMSTEC), thereby enhancing regional dialogues and providing impetus to regional integration.
India and ASEAN, to strengthen their engagement signed ‘the ASEAN-India Partnership for Peace, Progress and Shared Prosperity19’, which sets out the roadmap for long-term ASEAN-India engagement, at the 3rd ASEAN-India Summit in 2004 in Vientiane. Three Plan of Actions (POA) have been developed to implement the Partnership. The POA (2004-2010) and POA (2010-15) successfully implemented provision of the Partnership.
A third POA was adopted at 13th India-ASEAN Summit, 2015 and “lays out priorities and measures to be undertaken by both sides to further deepen and enhance their political-security, economic and socio-cultural ties as well as to realise the full potential of the ASEAN-India strategic partnership in all areas of common interests”20.
POA (2016-2020) further tend to intensify the India-ASEAN strategic engagement. The POA calls both India and ASEAN to strengthen the EAS, with ASEAN as the driving force, broaden the cooperation on strategic, political and economic issues of common interest, to promote peace, stability and economic prosperity in the region. ASEAN also encourages India to actively participate and co-chair joint exercises and activities organised by the East Asia Summit, ASEAN Regional Forum (ARF), and ASEAN Defence Ministers’ Meeting-Plus (ADMM-Plus). India and ASEAN support the implementation of the Southeast Asia Nuclear Weapons Free Zone (SEANFWZ) Treaty as an effective instrument towards the promotion of international peace and security.
Amitendu Palit observes that India’s engagement with SEA nations is driven largely by “strategic economic priorities including spotting and exploiting untapped energy and mineral resources, business and trade interests for integrating into the regional supply chains, ensuring the safety of economic traffic along sea lanes of communication and other vital economic matters” 21 While Sanjaya Baru is of view that SEA nations’ engagement with India has “strategic factors as well”. Baru asserts that the “end of the Cold War and the emergence of China as a major power have alerted a range of countries in Asia, including Japan, Korea, Singapore, Indonesia, Malaysia and Thailand to consider closer relations with India”22. It is clear, thus the engagement between India and SEA nations is not guided by interests of one but strategically, economically and politically imperative for both, India and SEA nations.
India’s engagement with SEA nations is not uniformity across the spectrum. Countries, like Singapore, Indonesia, Vietnam and Malaysia have strategic partnership with India while other strategically crucial country Philippines and culturally close nation Cambodia are yet to become strategic partners.
Connectivity
The Connectivity is one of the major features of India-ASEAN relations. Cultural connectivity and physical connectivity immensely influence the policies of both partners while engaging with each other. There are numbers of physical connectivity projects with ASEAN countries. Kaladan Multimodal Transit Transport Project, piloted and funded by Ministry of External Affairs, India, aims to develop Port/IWT between Sittwe and Kaletwa along Kaladan River and Road form Paletwa to Indo- Myanmar border (Mizoram).
Source: http://ris.org.in/pdf/Border%20connectivity%20Background%20Note.pdf
The Union Cabinet, on 14-October-2015 chaired by the Prime Minister Shri Narendra Modi, has approved Revised Cost Estimate (RCE) of Rs. 2904.04 crores for the Kaladan Multi Modal Transit Transport Project in Myanmar23 .
India-Myanmar-Thailand Trilateral Highway shall ensure connectivity from Moreh in India to Mae Sot in Thailand via Myanmar.
Prime Minister Modi at 12th India-ASEAN Summit emphasized that in this era, even where road connectivity is poor, the two sides can create vast economic opportunities and employment through i-ways24. Prime Minister Modi, at 13th ASEAN-India Summit, reiterated that connectivity is essential for shared prosperity and thereby committed Line of Credit of $ 1.0 billion to support physical and digital connectivity between India and ASEAN, and increased India-ASEAN Science and Technology Development Fund from the current one million U.S. dollars to 5 million U.S. dollars. He also proposed to establish India-ASEAN Innovation Platform to ease commercialization of low cost technologies, promote technology transfer and collaborative R&D projects.
India is also enhancing air connectivity with ASEAN countries. ASEAN-India aviation cooperation framework was adopted at the 14th Transport Ministers Meeting in Makati, Philippines on 6 November, 2008. According to Ministry of Civil Aviation 18 destinations of tourist and business interests are available to ASEAN countries in Tier II and III cities but only 7 have been utilized. Despite India’s ‘open skies’ policies, it is disappointing that few capitals of Southeast nations, especially CLMV (Cambodia-Laos-Myanmar-Vietnam) countries, doesn’t have direct air connectivity with India, while few countries like, Singapore, Thailand and Malaysia enjoy multiples air connections with India. Thai Airways and Singapore Airlines connect India to some of these capitals. It demonstrates that India’s air connectivity with Southeast nations is largely driven by economic consideration nevertheless; India’s recent effort to enhance the road/raid connectivity with CLMV countries is promising.
East Asia Summit (EAS)
Established in 2005, The East Asia Summit (EAS), the forum that brings together ten members of ASEAN-Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Cambodia, Laos, Myanmar and Vietnam and eight dialogue partners – India, China, Japan, Australia, New Zealand, United States, South Korea and Russia, has become a platform to discuss various issues not limited to Asia only, but the whole world.
Malaysian Prime Minister, Mahathir bin Mohamad promoted the idea of an East Asia Grouping in 1991. The final report of the East Asian Study Group in 2002, established by the ASEAN+3 countries (i.e. China, Japan and ROK), recommended EAS as an ASEAN led development limited to the ASEAN +3 countries. China insisted that the EAS framework should be limited to ASEAN plus three but Japan strongly argued that other invitees-India, Australia, and New Zealand—should be included as well25. The ASEAN Ministerial Meeting (AMM) held in Vientiane on July 26, 2005, welcomed the participation of ASEAN, China, Japan, Republic of Korea, Australia, India and New Zealand, in the first EAS in Kuala Lumpur, 14 December 2005; USA and the Russian Federation formally included as members of the EAS at the 6th EAS held in Bali, Indonesia on November 19, 2011.
Mohan Mallick in his article asserted that “Beijing fears that India’s participation in the core group would shift the balance of power and make the EAC less susceptible to domination by China”26 and when India finally become participant at EAS, China sought to make the EAS indistinguishable from the ASEAN Regional Forum or the APEC by suggesting to include anyone with interests in the Pacific—Russia, perhaps, or even the United States”27
G V C Naidu is of view that “an invitation to India to the EAS now is recognition of its fast growing economic and political clout” and it is time for “India to look beyond ASEAN and in addition to enhanced economic integration with this dynamic region, India needs to pay attention to political and security dimensions as well”28.
India’s participation at EAS illustrates that India is no longer confined to South Asia region and have significantly increased its stake in the region. More importantly, EAS also signifies that nations of SEA region are the driving force which is guiding and leading the major powers, China, US, India and Russia for the maintenance of peace, security, prosperity and progress in the region and beyond.
The proposal for the revival of Nalanda University endorsed at the 4th East Asia Summit (EAS), held in Thailand on 24-25 October, 2009, to bring together the brightest minds from all the countries of Asia. The proposal for a Regional Comprehensive Economic Partnership (RCEP), a free trade area comprising ASEAN and the six FTA Partners of ASEAN, was lunched at the 7th EAS in November 2012, accelerate to greater economic integration, support equitable economic development and strengthen economic cooperation among the countries involved. These initiatives lessen the apprehension that EAS will be another ‘talk shop’ and little community building will be done.
Prime Minister Modi, in his speech at the 9th EAS on 13 November 2014, emphasised that a balanced Regional Comprehensive Economic Partnership Agreement, which gives equal emphasis to goods and services, could become a springboard for regional integration and prosperity29. Prime Minister Modi, on 22 November 2015 at 10th EAS, called for an early conclusion of a balanced and broad-based Regional Comprehensive Economic Partnership. He also regarded Trans Pacific Partnership as a major development and hoped that these blocks eventually not become competing regimes, but the foundations of an integrated economic community in the region30.
Prime Minister Modi’s reformed and vigorous foreign policy is aimed at aligning with all nations to facilitate the path for India’s rise. To do so, India requires supportive partners and a peaceful and conducive environment. The world, nevertheless, is facing unprecedented challenges – terrorism, economic crisis and climate change. These challenges can adversely affect the prospects of India’s rise. These challenges could not be tamed and mitigated by one nation. The joint effort of nations is a pre-requisite to combat terrorism and climate change. PM Modi’s address at the East Asia Summit explicitly highlighted these concerns.
In his speech at the 10th East Asia Summit, Prime Minister Modi favoured the evolution of comprehensive regional architecture for security and cooperation. He asked for closer cooperation on cyber security, outer space and non-proliferation. India proudly proposed to establish EAS Virtual Knowledge Portals on Disaster Management and Trauma Care and Nursing.
Prime Minister Modi referring to the South China Sea disputes at the 10th East Asia Summit, said that India “shares with ASEAN a commitment to freedom of navigation, over flight and unimpeded commerce, in accordance with accepted principles of international law, including the 1982 UN Convention on the Law of the Sea” indicates that India’s active and renewed spirit to engage in the region and not desist from problems that are strategically crucial for India and to maintain peace in the region.
PM Modi’s Bilateral Engagements in Malaysia and Singapore, November 2015
PM Modi also had a bilateral meeting with Dato Sri Mohd Najib Tun Abdul Razak, the Prime Minister of Malaysia, and they jointly inaugurated the Torana Gate in Brickfields, Kuala Lumpur, known as ‘Little India’.
India and Malaysia established Diplomatic relations in 1957 and celebrated 50th anniversary of the foundation of their diplomatic engagement in 2007. India and Malaysia signed, in October 2010, a Framework for Strategic Partnership during Prime Minster Manmohan Singh’s visit to Malaysia, envisioning development of a multi-faceted relationship with a view to elevate bilateral relations to the level of a long term and strategic partnership31.During Prime Minister Modi’s visit to Malaysia, in November 2015, both countries have agreed for enhanced strategic partnerships by deepening existing areas and exploring new areas of co-operations32.
India-Malaysia Comprehensive Economic Cooperation Agreement (CECA), signed on 18 February 2011, enhanced the bilateral economic engagement and experienced rise in trade volume. In 2010-2011, there were US$ 101.45 million in Indian exports and US$ 6,523.58 million in imports to and from Malaysia; by 2011-12, these had increased to US$ 148.26 million and US$ 9,473.64 million respectively33. These represent an annual growth of 46.15 per cent in export growth and 45.22 per cent in import34. By 2014-15, India exported products worth US$ 5,816.55 million and imported from Malaysia products worth US$ 11,117.74 million35. Although, the trade data indicates that India’s trade deficit with Malaysia has slightly decreased since signing of CECA, yet trade is not favourable to India. Encouragingly, India’s FTA with ASEAN in services and investments, signed in September 2014, will allow India to “leverage its competitive edge in the areas of finance, education, health, IT, telecommunications and transport, helping India to balance trade deficit with ASEAN countries in trade of goods”36.
The joint statement, issued during Prime Minister Modi’s visit to Malaysia, November 2015, highlighted the need to further fortify the strategic relationship and agreed to hold regular political consultations with Ministers of Foreign Affairs of the two countries and regular exchanges of Parliamentarians from India and Malaysia and at the Cabinet level between the Ministers in charge of Trade and Industry, Transport, Public Works and Infrastructure. Defence cooperation was another significant theme of the joint statement. The joint statement enhanced the defence exchanges through dialogues at Ministers’ and Secretaries’ levels. Both sides also agreed to cooperate in the field of health, human resources, tourism and education, science and technology and public administration. India also agreed to provide assistance to Malaysia in SU 30 MKM training programme in maintenance, technical support and safety related issues. Both countries agreed on cooperation between Indian Coast Guards and the Malaysian Maritime Enforcement Agency and agreed to establish mechanism for sharing of information related to Humanitarian Assistance and Disaster relief (HADR) and also to establish linkages between the Centre for UN Peacekeeping of India (CUNPK) and the Malaysian Peacekeeping Centre (MPC).
Malaysia, despite small defence industry, Is undertaking defence industrialisation for both economic and military reasons and establishing Malaysian Defence & Security Technology Park (MDSTP), first of its kind in the ASEAN region, to cater to the growing demand and needs of the defence and security industry. Malaysian has shown interest in Indian participation in Malaysian Defence and Security Park. Malaysian Defence and Security Park encourages international defence industry provider to manufacture products for the local, regional and global market.37 Malaysia signed, a $900 million contract, in August 2003, with Irkut Corp. for 18 SU-30MKMs. Although, Irkut was the main contractor for supplying Su-30s MKMs, but foreplanes, stabilizers and fins were manufactured by India’s HAL Nasik under a $25-30 million value subcontract38. India’s military diplomacy can exploit opportunities to harness economic benefits from defence cooperation. Prime Minister Modi’s ‘Make in India’, an initiative to overhaul manufacturing sector in India, attached great significance to military development. ‘Make in India’ in military industry not only for domestic use but can bring paradigm shift in military industry to become exporter of military equipments. India’s indigenously developed Dhruv and Tejas helicopter could be offered to Southeast countries especially Singapore and Malaysia for their air defence needs.
The Prime Minister also paid an official visit to Singapore, marking the 50th anniversary of bilateral relations and elevating bilateral ties to Strategic Partnership. With a strategic location, economic success and maritime hub, Singapore, with sizeable Indian Diaspora, is a natural partner of India.
India-Singapore current close interactions are deeply rooted in culture and historical contacts, dating back to the Chola Dynasty. During the British colonial era, the two “entities shared close administrative and economic links”39. India played a key role in helping Singapore gain entry into the Non-Aligned Movement, after Singapore became independent in August 1965. India-Singapore engagement gradually warmed up after 1991, with India’s Look East Policy (LEP) and after Prime Minister Goh Chok Tong’s 1994 visit to India. Singapore also strongly supported India’s case for Dialogue Partnership with ASEAN, membership to East Asia Summit, membership in the ARF and in the ASEAN Plus One summit meeting, clearly indicates that Singapore regards India as a valuable partner.
The India-Singapore Comprehensive Economic Cooperation Agreement (CECA), signed in June 2005- a free trade agreement, also facilitated cultural, educational, and people-to-people exchanges and further deepen the bilateral relationship. CECA has expanded bilateral trade and investment; in 2005-2006, there were US$ 5,425.29 million in Indian exports and US$ 3,353.77 million in imports to and from Singapore; by 2015, these had increased to US$ 9,809.36 million and US$ 7,124.47 million respectively. These represent an increase of 123 per cent in export growth and 88 per cent in import growth in the period 2005-2015. Singapore was the largest source of FDI into India for the year 2013-14 overtaking Mauritius, with US$ 5.98 billion, accounting for about 25% of FDI inflows in the year.40 Although, bilateral trade has increased since singing of CECA 2005, both export and import to and from Singapore drastically fallen in 2014-15 period41 (See the chart). It is believed that global market is shrinking due to slowing down of China which led to fall in India’s trade with Singapore, amid lower commodity prices and weak demand in developed nations.
Source: Compiled from Export Import Data Bank, Department of Commerce, Government of India
India-Singapore defence cooperation started in 1993. Singapore is the only country that has access to the training facilities at the Southern Naval Command in Kochi, in addition to other training facilities. Since 1996, India-Singapore holds antisubmarine warfare exercises at India's Eastern Naval Command. Singapore has also utilised India’s missile testing range at Chandipur to test out its guns and some missiles in its inventory. The defence cooperation was further deepened by the signing of a defence cooperation agreement during the visit by the Singapore Defence Minister, Teo Chee Hean in October 2003.
Joint Military Exercises Agreement 2007 allows the Singapore air force to train at Indian military bases in Kalaikunda, West Bengal, for five years, in return for payment and the understanding that the Singapore air force maintains and upgrades the Indian facilities provided. This military agreement is significant because it is the first time the Indian government has allowed the stationing of foreign troops on its soil42.
During Prime Minister Modi’s visit to Singapore, 23-24 November 2015, India and Singapore signed two agreements to further enhance defence cooperation and extends the loan of Indian artefacts to the Asian Civilisations Museum of Singapore. Both countries also signed MoU on cyber Security, Civil Aviation, Cooperation in the Field of Planning, Cooperation to Combat Illicit Trafficking in Narcotic Drugs, Psychotropic Substance and their Precursors, Capacity Building in the Field of Urban Planning and Governance.
In the joint statement, “Renewed Spirit, New Energy –नया उत्साह, नया जोश”, both India and Singapore pledged to contribute to greater regional stability and growth and deepen existing areas of cooperation. India and Singapore also indentified new areas of strategic cooperation in the field of Political Exchanges, Defence and Security cooperation, etc. Both countries also agreed to continue to work closely together with other ASEAN Member States to strengthen ASEAN Centrality, enhance connectivity, and support the ASEAN Community building process covering the three pillars of the ASEAN Community43.
‘Skill development’ and ‘smart cities’ supported Singapore’s growth story. Modi’s ambitious plan of the same can be replicated in India with the partnership of Singapore. The joint statement, thus notes the specific initiative taken by PM Modi such as ‘Make in India’, ‘Digital India’, ‘Skill India’, ‘Clean India’, ‘Affordable Housing for all by 2022’, ‘Namami Gange’ and ‘Smart Cities’ that have collaborative commercial opportunities for businesses and industries of both countries. The joint statement also reaffirmed the significance of the Comprehensive Economic Cooperation Agreement (CECA) signed in 2005, which remains the bedrock of economic partnership between the two countries. Both Prime Ministers desired an early conclusion of the Second Review of CECA. Since 2005, the bilateral trade has more than doubled to US$17 billion, the joint statement sought to further double the bilateral trade. Both countries also favoured co-development and coproduction between the defence industries of the two countries and also decided to expand cooperation in maritime security.
The focus of India-Singapore engagements, primarily were on political, economic and security dimensions. At the 50th Anniversary of their diplomatic engagement, bilateral ties elevated to strategic partnership and cooperation also extended to Cultural, Urban Planning and Governance aspects. The comprehensive engagement between India and Singapore is mutually beneficial. Developing India certainly requires knowledge and governance skills to formulate policies to usher the path of development. On the other hand, geo-strategic locations of Singapore necessitate military and strategic training for its forces and close engagement with India to defy hegemonic rise of one country in the region.
The presence of Indian Diaspora in both countries is definitely an asset and PM Modi’s interaction with the Indian community was aimed at bringing investment and getting benefit from their knowledge in transforming India. Both Malaysia and Singapore have marvelous track records in infrastructure and city management. India can definitely learn from their experience.
Singapore is significantly featuring in the world ranking of universities. The National University of Singapore ranked 12th in QS World University Ranking and 1st in QS University Ranking Asia in 2015. Singapore is one of the few countries attracting a huge number of foreign students. In a very short span of time, universities in Singapore have achieved recognition and praise. Academics are another area where India can cooperate with Singapore. Although, ICCR and National University of Singapore (NUS) established a Chair on Indian Studies at the South Asian Studies Programme, National University of Singapore, but it is also pertinent to invite Singaporean talents and for that matter other foreign talents to Indian universities to do research and teach courses.
India therefore, has to create favourable conditions domestically and offer lucrative benefits to the Diaspora and India’s ‘knowledge deposit’ in foreign land to return to their roots and assist in transforming India. It is imperative for India to attract not only financial investments from the Indian community abroad, but also ‘knowledge’. Financial investments and tech-how definitely help to prosper, but to achieve ‘World’s Guru’ status, political power is a pre-requisite. Political power is vested in political ideas. Ideas should be transformed into actions. An action without thinking is bound to fail. India, therefore, requires a symphony of ideas and actions to succeed.
Conclusion
The interaction among various civilizations at the East Asia Summit also provides an opportunity for mutual conciliation and better understanding of different cultures. Therefore, ASEAN and East Asia Summit are paving the way not only for economic integration but, more importantly, for a ‘harmonious world’.
Prime Minister Modi’s dynamic diplomacy is transforming India’s foreign policy narrations. Aligning with all stakeholders and vigorous bilateral engagements with states are certainly new innovations in India’s foreign policy. Modi’s visit to Malaysia and Singapore will boost the bilateral ties and give impetus to the ‘Act East’ Policy to establish the Asian Century. India’s bilateral ties with nations of SEA also offer an opportunity to expand defence cooperation for commercial purposes. India favoured negotiations for a balanced and ambitious Regional Comprehensive Economic Partnership Agreement that covers goods and services as well as investments. To establish inclusive and prosperous Asian Century, Regional Comprehensive Economic Partnership should enlarge its ambit to build the Asian Community.
***
* The Author, Research Fellow, Indian Council of World Affairs, New Delhi.
The Views expressed are that of the Researcher and not of the Council.
Endnotes:
2Text of the Opening Statement by the PM at the ASEAN-India Summit, Press Information Bureau Government of India, Prime Minister's Office, 21-November-2015, http://pib.nic.in/newsite/PrintRelease.aspx?relid=131761
3 Research and Information System for Developing Countries, 2013, “ASEAN-India Strategic Partnership: Perspectives from the ASEAN-India Network of Think-Tanks”, 7-8 August 2012, New Delhi , p.20 http://www.ris.org.in/images/RIS_images/pdf/AINTT%20Proceedings-WEB.pdf
4 Ministry of External Affairs, Government of India, “ASEAN- India Relations”, http://mea.gov.in/aseanindia/20-years.htm
5 ibid
6 The Association of Southeast Asian Nations , “Overview ASEAN-India Dialogue Relations”, November 2015, http://www.asean.org/asean/external-relations/india/item/overview-of-asean-india-dialogue-relations
7Ministry of External Affairs, Government of India, “ASEAN- India Relations”, http://mea.gov.in/aseanindia/20-years.htm http://mea.gov.in/aseanindia/20-years.htm
8Ministry of commerce, Government of India, http://commerce.nic.in/
9 The Association of Southeast Asian Nations, Top Ten Export Markets and Import Origins http://www.asean.org/images/2015/July/external_trade_statistic/table21_asof17June15.pdf
10 ibid
11 ibid
12 Amitendu Palit, “ India-Southeast Asia Relations: Enhancing Mutual Benefits”, Brookings India IMPACT Series, Brookings Institution India Center, 2015, http://www.brookings.in/wp-content/uploads/2015/06/India-Southeast-Asia-Relations-Amitendu.pdf
13 Chandrima Sikdar and Bishwjit Nag , “Impact of India-ASEAN Free Trade Agreement: A cross-country analysis using applied general equilibrium modelling, ”Asia-Pacific Research and Training Network on Trade Working Paper Series, No 107, November 2011, http://www.unescap.org/sites/default/files/AWP%20No.%20107.pdf
14 Parthapratim Pala and Mitali Dasgupta , “Does a Free Trade Agreement with ASEAN Make Sense?”, Vol. 43, Issue No. 46, 15 Nov, 2008, http://www.epw.in/journal/2008/46/commentary/does-free-trade-agreement-asean-make-sense.html?0=ip_login_no_cache%3D9a9445df47e44c558d25bfd5f7aab2e2
15 12th AEM-India Consultations, 23 August 2015, Kuala Lumpur, http://www.asean.org/storage/2015/12/AEM-India-12-JMS-AEM-FINAL.pdf
16 Agreement on Trade in Goods under The Framework Agreement on Comprehensive Economic Cooperation Between the Republic of India and the Association of Southeast Asian Nations, http://commerce.gov.in/trade/asean-india%20trade%20in%20goods%20agreement.pdf
17 Plan of Action to Implement the ASEAN-India Partnership for Peace, Progress And Shared Prosperity (2016-2020), http://www.asean.org/images/2015/August/POA_India/ASEAN-India%20POA%20-%20FINAL.pdf
18 See, Mitrany, David. (1933) The Progress of International Government. New Haven: Yale University Press; “Functional Approach to World Organization”, International Affairs, Vol. 23, (1948); A Working Peace System, Chicago: Quadrangle Books (1966). The Functional Theory of Politics, New York: St. Martin's Press (1976).
20 Plan of Action to Implement the ASEAN-India Partnership for Peace, Progress And Shared Prosperity (2016-2020), http://www.asean.org/images/2015/August/POA_India/ASEAN-India%20POA%20-%20FINAL.pdf
21 Amitendu Palit, “ India-Southeast Asia Relations: Enhancing Mutual Benefits”, Brookings India IMPACT Series, Brookings Institution India Center, 2015, http://www.brookings.in/wp-content/uploads/2015/06/India-Southeast-Asia-Relations-Amitendu.pdf
22 Sanjaya Baru, “India and ASEAN: The Emerging Economic Relationship Towards A Bay of Bengal Community”, Working Paper No. 61, February, 2001, Indian Council For Research on International Economic Relations, New Delhi, http://icrier.org/pdf/baru61.pdf
23 Press Information Bureau, Government of India, “Implementation of the Kaladan Multi Modal Transit Transport Project in Myanmar at the Revised Cost Estimate of Rs 2904.04 Crore ”, 14 October 2015, http://pib.nic.in/newsite/PrintRelease.aspx?relid=128699
24 Remarks by the PM at the 12th India-ASEAN Summit, Nay Pyi Taw, Myanmar, 12 November 2015
http://www.narendramodi.in/remarks-by-the-pm-at-the-12th-india-asean-summit-nay-pyi-taw-myanmar-6878
25 G. V. C. Naidu, “India and the East Asian Summit”, Strategic Analysis, October 2005, Volume: 29 Issue: 4, http://www.idsa.in/strategicanalysis/IndiaandtheEastAsianSummit_gvcnaidu_1005
26 Mohan Malik , “China And The East Asian Summit: More Discord Than Accord”, Asia-Pacific Center for Security Studies, February 2006, http://apcss.org/Publications/APSSS/ChinaandEastAsiaSummit.pdf
27 ibid
28 ibid
http://mea.gov.in/Speeches-Statements.htm?dtl/24238/Prime+Ministers+remarks+at+the+9th+East+Asia+Summit+Nay+Pyi+Taw+Myanma
http://mea.gov.in/Speeches-Statements.htm?dtl/26053/Remarks_by_Prime_Minister_at_the_10th_East_Asia_Summit_in_Kuala_Lumpur_November_22_2015
31 Ministry of External Relations, Government of India, “India-Malaysia Relations”, http://www.mea.gov.in/Portal/ForeignRelation/Malaysia_July_2014.pdf
33 Export Import Data Bank, Department of Commerce, Government of India
34 ibid
35 ibid
37 Malaysian Defence & Security Technology Park (MDST), http://mdstp.com.my/about/
39 Kwoh-Jack Tan, “Singapore-India Relations: Cultural Engagement and Foreign Policy”, June 2014, https://www.rsis.edu.sg/wp-content/uploads/2014/07/PB140630_Singapore_India_Relations.pdf
40 Ministry of External Relations, Government of India, “India – Singapore Relations”, http://www.mea.gov.in/Portal/ForeignRelation/Singapore_2015_07_02.pdf
41 Export Import Data Bank, Department of Commerce, Government of India
42 Ming Hwa Ting, “Singapore-India Relations: A Return to History”, http://www.seas.at/aseas/2_2/ASEAS_2_2_A7.pdf
43 Joint Statement on a Strategic Partnership between India and Singapore“ Renewed Spirit, New Energy – नया उत्साह, नया जोश”, November 24, 2015, http://mea.gov.in/bilateral-documents.htm?dtl/26060/Joint_Statement_on_a_Strategic_Partnership_between_India_and_Singapore_Renewed_Spirit_New_Energy______November_24_2015