In-Depth
Founded over half-a-century ago in 1967 the Association of Southeast Asian Nations (ASEAN) is a regional intergovernmental organisation that aims to promote regional peace, stability, and economic growth through cooperation among its ten member states: Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam, Myanmar, Laos, Cambodia, and Brunei. ASEAN plays an important role as a trade partner for India, accounting for about 11% of India's global trade.
Deepening ties with Vietnam
A notable highlight of India-ASEAN relations has been the strengthening of ties with Vietnam. During a visit by Vietnamese Prime Minister Pham Minh Chinh to India in August 2024, PM Modi reaffirmed the commitment to a Comprehensive Strategic Partnership. Additionally, a new $300 million credit line was announced to enhance Vietnam’s maritime security, focusing on terrorism and cybersecurity. Over the past decade, trade between India and Vietnam has increased by 85% in sectors such as energy, technology, defence, and security.
Strengthening India-Malaysia relations
Malaysian Prime Minister Anwar Ibrahim's visit to India in August 2024 marked a significant step toward elevating India-Malaysia ties from an Enhanced Strategic Partnership to a Comprehensive Strategic Partnership. The visit led to agreements in areas such as workers’ recruitment, Ayurveda, digital technologies, and culture were signed to strengthen bilateral cooperation. Trade reached a record $19.5 billion, with both nations committing to local currency settlement in trade.
Economic collaboration with Singapore
Singapore emerged as the largest source of foreign direct investment (FDI) for India in the 2023-24 fiscal year, with inflows of approximately $11.77 billion. During PM Modi’s visit to Singapore in September 2024, India and Singapore elevated their relationship to a Comprehensive Strategic Partnership, focusing collaboration in sectors such as semiconductors, digital technology, and sustainable development. Soon after PM Modi’s visit, the Indian government inaugurated Invest India's office in Singapore which is aimed at facilitating investment ties and serves as a point of contact for Singaporean companies looking to invest in India.
Strengthening ties with Brunei
PM Modi's visit to Brunei marked a historic milestone as the first bilateral engagement by an Indian Prime Minister. A significant outcome of his visit was the signing of a memorandum of understanding for cooperation in operating telemetry, tracking, and telecommand stations for satellites. Both nations also agreed to elevate their ties to an Enhanced Partnership, with a focus on defence, trade, energy, and cultural exchanges.
Future outlook
As India approaches significant milestones in its relationships with ASEAN nations, such as the sixtieth anniversary of diplomatic relations with Singapore in 2025, the focus remains on timely review of the India-ASEAN Trade in Goods Agreement, strengthening connectivity through direct flights and digital platforms and continued focus on economic integration and strategic partnerships in areas such as defence cooperation, maritime security, semiconductors and advanced manufacturing, cybersecurity, emerging technologies like AI and fintech, and sustainable development.