Introduction

ASEAN, established in 1967, comprises 11 countries, forming one of the world’s most successful regional organizations. With over 40-50% of global trade transiting through the region, ASEAN represents both an economic hub and a strategic pivot in the Indo-Pacific. The 2025 Summit reinforced ASEAN’s centrality amid a shifting balance of power between the US and China, while India emphasized trade cooperation and connectivity.

ASEAN’s Strategic Importance for India

1. Geopolitical Significance: ASEAN lies at the heart of the Indo-Pacific, acting as a bridge between the Indian and Pacific Oceans.
2. Economic Weight: ASEAN is India’s fourth-largest trading partner after the EU, US, and China.
3. Strategic Leverage: Provides India a platform to balance China’s regional assertiveness and engage in multilateral security frameworks.
4. Connectivity Corridor: India’s projects such as the India-Myanmar-Thailand Trilateral Highway and Kaladan Multimodal Project enhance physical and economic connectivity.
5. Regional Integration: Strengthens India’s participation in regional supply chains, energy cooperation, and maritime trade.

How the US-China Rivalry Shapes ASEAN’s Role

1. Regional Polarization: ASEAN faces pressure between the US-led security framework and China’s economic dominance.
2. Maritime Disputes: The South China Sea remains a flashpoint due to overlapping territorial claims, especially involving the Philippines, Vietnam, and China.
3. Security Realignment: The Philippines has taken an increasingly muscular stand, rejecting China’s claims under the 2016 Hague ruling.
4. Economic Competition: While China drives trade and infrastructure investment, the US advances Indo-Pacific partnerships emphasizing rule-based order and open seas.
5. Strategic Autonomy: ASEAN states attempt to maintain neutrality and avoid direct alignment with either power bloc.

India’s Engagement in the ASEAN Framework

1. Act East Policy: Deepens trade, connectivity, and strategic cooperation in Southeast Asia.
2. Trade Liberalization: India signed the India-ASEAN FTA in 2009, expanding goods trade and tariff concessions.
3. Economic Challenges: India exited the RCEP (Regional Comprehensive Economic Partnership) over market access concerns but remains committed to ASEAN-based trade.
4. High-Level Diplomacy: Prime Minister Narendra Modi reaffirmed ASEAN centrality in the Indo-Pacific vision and proposed renewed cooperation on connectivity and digital economy.
5. Institutional Dialogue: India participates in ASEAN-led forums like EAS, ARF, and ADMM+, ensuring consistent engagement.

Lessons from ASEAN for Other Regional Grouping

1. Institutional Continuity: ASEAN demonstrates sustained dialogue and incremental cooperation since 1967.
2. Economic Integration: The ASEAN Free Trade Area (AFTA) and upcoming ASEAN-Australia-New Zealand FTA reflect progressive liberalization.
3. Replicable Model: Regional blocs like SAARC, BIMSTEC, and BBIN can emulate ASEAN’s approach to consensus-building and functional cooperation.
4. ASEAN Centrality Principle: Encourages issue-based cooperation despite internal diversity, offering lessons for South Asian regionalism.
5. Leadership in Transition: Malaysia and Thailand’s evolving chairmanship roles underscore ASEAN’s adaptability in managing complex geopolitics.

Trade and Connectivity Imperative

1. Physical Infrastructure: Projects such as Kaladan and Trilateral Highway facilitate India’s access to Southeast Asian markets.
2. Digital and Maritime Corridors: Enhance India’s trade routes and logistical resilience against Chinese dominance.
3. Supply Chain Diversification: Reduces dependence on China while integrating India with East Asian production networks.
4. Economic Opportunities: ASEAN’s collective GDP of over $3 trillion presents scope for India’s pharmaceutical, IT, and engineering exports.
5. Strategic Balancing: Economic linkages act as a counterweight to China’s Belt and Road Initiative (BRI).

Conclusion

ASEAN remains a cornerstone of India’s Indo-Pacific engagement, offering both strategic depth and economic opportunity. As the US-China competition intensifies, India’s sustained engagement, anchored in connectivity, trade, and institutional cooperation, can ensure regional stability, multipolar balance, and long-term strategic autonomy.

PYQ Relevance

[UPSC 2024] The West is fostering India as an alternative to reduce dependence on China’s supply chain and as a strategic ally to counter China’s political and economic dominance.

Linkage: The article aligns with this PYQ as it highlights ASEAN’s centrality in India’s Indo-Pacific outreach, where Delhi’s engagement acts as a counterbalance to China’s dominance. It reinforces the West’s strategy of integrating India within regional supply chains and strategic coalitions to diversify away from Chinese dependence.

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