Prime Minister Narendra Modi’s recent visit to Brunei and Singapore is part of a deliberate focus on India’s “Act East” policy.
The government, in its third term, is renewing its efforts to engage with the ASEAN region.
This is the first significant outreach to ASEAN since 2018 when ASEAN leaders attended a summit and the Republic Day parade in India.
Upcoming Diplomatic Engagements:
PM Modi is expected to visit Laos for the ASEAN-India summit, as well as the Philippines and Indonesia, later this year.
India has also invited the Prime Ministers of Vietnam and Malaysia for visits, signaling a strong desire to reconnect with Southeast Asian countries.
Importance of Reconnecting with Southeast Asia:
India’s efforts to reconnect with ASEAN countries are considered overdue, especially given the strategic and economic significance of the region.
PM Modi’s visit to Brunei was the first-ever bilateral visit by any Indian Prime Minister, highlighting past neglect of ties with this important ASEAN member.
Brunei-India Relations:
Brunei holds strategic ties with the U.S. and trade ties with China, making it a critical player in the ASEAN region.
India’s trade with ASEAN has doubled over the past decade, but trade with Brunei has declined due to India increasing its oil imports from Russia since 2022.
While India and Brunei do not have a formal strategic partnership, the leaders discussed defense, geo-strategic issues, and renewed space cooperation, including hosting an ISRO station in Brunei.
Singapore-India Relations:
PM Modi’s visit to Singapore focused on semiconductors, as Singapore plays a key role in the electronics supply chain.
India seeks more technical expertise and investment in rare earths and chip-making, while Singapore aims to mitigate rising land and labor costs.
The two countries could form a strong partnership in this sector, helping to reduce reliance on the U.S.-China-Taiwan semiconductor tensions and addressing concerns over American protectionism and Chinese practices.
Strengthening this partnership could help reverse the drop in Singapore’s foreign direct investment (FDI) into India.
Challenges in India-ASEAN Engagement:
India’s engagement with ASEAN must be more consistent to fully realize the potential for greater cooperation in technology, trade, and investment.
India’s withdrawal from the ASEAN-led Regional Comprehensive Economic Partnership (RCEP) in 2019 has been a setback, as it excludes India from a large regional free trade agreement (FTA).
The Regional Comprehensive Economic Partnership (RCEP) is a comprehensive free trade agreement being negotiated between the 10 ASEAN Member States and ASEAN's free trade agreement (FTA) partners viz. Australia, China, India, Japan, Korea and New Zealand.
ASEAN has repeatedly requested India to reconsider its decision, but New Delhi has so far refused to revise its stance.
India must update its 2009 ASEAN-India Trade in Goods Agreement (AITIGA) and its 2005 Comprehensive Economic Cooperation Agreement (CECA) with Singapore to maintain strong economic ties.
Strengthening these agreements is essential to improving trade and investment relations.
India’s commitment to “ASEAN centrality” on strategic issues in the Indo-Pacific has been positively received by ASEAN countries.
However, India needs to coordinate more closely with ASEAN on geopolitical issues, such as the situation in Myanmar, the South China Sea disputes, and Quad (Australia, India, Japan, and the U.S.) engagement.
Historical and Modern Ties:
While India’s historical ties with Southeast Asia span more than a millennium, modern relations require periodic resets.
Previous governments have recalibrated these ties through policies like the “Look East” policy (1992) and the Modi government’s “Act East” policy (2014).
These efforts must be continued for sustained engagement.
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