Recently, the 20th ASEAN-India Economic Ministers’ meeting was held in Semarang, Indonesia. This marked a significant leap in improving economic alliance between India and the ASEAN member states.
Key Highlights of the Meeting
Notable facets of the meeting included strengthening the economic partnership, addressing regional and global challenges, a comprehensive review of the ASEAN-India Trade in Goods Agreement (AITIGA), and future plans for reinforcing the ASEAN-India Comprehensive Strategic Partnership.
Strengthening Economic Partnership
During the meeting, the shared commitment to strengthen the ASEAN-India Comprehensive Strategic Partnership was accentuated, ensuring considerable benefits for both parties. Ministers pointed out the necessity of nurturing economic cooperation despite the troubles caused by the Pandemic. Bilateral trade between India and ASEAN in 2022-23 was recorded at USD 131.5 billion, making up 11.3% of India’s worldwide commerce during the same time frame.
ASEAN-India Business Council: Fostering Closer Business Linkages
The ASEAN-India Business Council’s efforts in 2023 were commended by the ministers, including the organization of the 5th ASEAN-India Business Summit in Kuala Lumpur. Established by the Governments of ASEAN and India in 2005, AIBC aims to establish closer business links and provide an industry perspective to the broadening and deepening of economic links between ASEAN and India.
Addressing Regional and Global Challenges: Spotlight on Multidimensional Effects
Amid region-specific and global challenges, the meeting saw deliberations about the Covid-19 pandemic’s diverse impacts, climate change, financial market unpredictability, inflation, and geopolitical tensions. Key areas identified for cooperation included robust Supply Chains, Food Security, energy security, health, and financial stability.
Review of AITIGA: A Pivotal Agenda Item
The meeting’s pivotal point was the comprehensive review of AITIGA, first signed in 2009. Preceded by a meeting of the AITIGA Joint Committee that deliberated on the review’s trajectory, the Term of Reference and Work Plan for AITIGA Review Negotiations were finalized.
A Step towards Progress: Endorsement and Commencement of Review
Endorsing AITIGA’s review documents, the ministers paved way for formal negotiation beginnings. This initiation addresses Indian businesses’ longstanding demand and aims at making the Free Trade Agreement (FTA) more conducive to trade and mutually beneficial. The review process is set to improve trade diversification while addressing existing trade imbalances.
Association of Southeast Asian Nations (ASEAN): An Overview
ASEAN is a regional grouping established in August 1967 that promotes economic, political, and security cooperation. Its member countries include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The ASEAN region reported a commodity trade of 98.39 billion with India from April 2021 to February 2022, with significant ties with Indonesia, Singapore, Malaysia, Vietnam, and Thailand.
Past UPSC Civil Services Examination Questions on ASEAN
For further contextual understanding, two questions from previous years’ UPSC Civil Services Examination have been included. The prelims question from 2018 asked about ASEAN’s ‘free-trade partners’. The mains question from 2016 required an examination of the economic and strategic dimensions of India’s Look East Policy in the post-Cold War international scenario.
