ASEAN or the Association of Southeast Asian Nations is a regional group formed to promote economic, political, and security cooperation among its members. It was established in Bangkok, Thailand in August 1967, with countries like Indonesia, Malaysia, Philippines, Singapore and Thailand playing the role of founding members. The chairmanship of ASEAN rotates annually, following the alphabetical order of the English names of Member States. Currently ASEAN encompasses ten Southeast Asian nations – Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. Together, these nations have a population of over 650 million and a combined Gross Domestic Product (GDP) of approximately USD 2.8 trillion.
India’s Act East Policy is aimed at augmenting political relations, increasing economic integration and widening the scope of strategic interaction with ASEAN. The policy is significantly important for India owing to the economic and strategic dimensions it brings forth in the post-Cold War international scenario.
A Closer Look at the 19th ASEAN-India Economic Ministers’ Meeting
The 19th ASEAN-India Economic Ministers’ meeting, co-chaired by India and Cambodia, saw participation from Economic Ministers or their representatives from all the 10 ASEAN member countries. The meeting proved to be an important platform for discussing various areas of cooperation between India and ASEAN.
Understanding the Key Highlights of the Meeting
The meeting was dominated by discussions revolving around the current state of trade and economic relations between ASEAN and India. Participants noted a considerable recovery from the impact of Covid-19, with two-way trade reaching USD 91.5 billion in 2021, marking a 39.2% increase year-on-year. The ASEAN India Business Council’s (AIBC) recommendations to enhance bilateral economic partnership and its activities undertaken in 2022 were also acknowledged.
The AIBC was established in March 2003 as a common platform for bringing together key private sector players from India and ASEAN countries for networking and idea-sharing.
Commitment towards Post-Covid-19 Recovery
Ministers reaffirmed their commitment to undertake collective actions aimed at mitigating the economic impact of the pandemic and working towards a sustainable post-Covid-19 recovery. They welcomed the plan to forge collective action to assure a robust supply chain connectivity, maintaining the flow of vital goods and services.
Discussion on upgrading ASEAN-India Trade in Goods Agreement (AITIGA), mutual recognition of Covid-19 vaccination, vaccines production, public health surveillance, and medical technologies also took place.
ASEAN India Trade in Goods Agreement: What’s New?
The Economic Ministers agreed on reviewing and making the AITIGA more user-friendly, simple, and trade-facilitative for businesses. This initiative also meant responding to the current global and regional challenges including supply chain disruptions. In order to undertake this review expeditiously, the AITIGA Joint Committee was activated.
Understanding India’s Trading Ties with ASEAN
Commodity trade between India and the ASEAN region has reached USD 98.39 billion in the period between April 2021 and February 2022. India’s main trading ties within ASEAN are with Indonesia, Singapore, Malaysia, Vietnam, and Thailand.
Finally, it’s important to note that ASEAN maintains free trade agreements with six partners: China, Republic of Korea, Japan, India, Australia, and New Zealand.