10 Point Plan for India-ASEAN Relations | 14 Oct 2024

Source: IE

Why in News?

Recently, India's Prime Minister announced a 10-point plan at the 21st ASEAN-India Summit 2024 in Vientiane, Laos. 

• He also participated in the 44th ASEAN summit with the theme ASEAN: Enhancing Connectivity and Resilience and 19th East Asia Summit. 
• Year 2024 also marked 10 years of India’s Act East Policy that was announced in 2014 to strengthen India-ASEAN ties in trade, security, and connectivity in the Indo-Pacific.   

What are the Key Facts About the 21st ASEAN-India Summit 2024? 

• ASEAN and India Overview: ASEAN and India together represent 7% of the world’s GDP and 26% of the global population. 
• Emerging Technologies: India and ASEAN agreed to collaborate on Artificial Intelligence (AI), Blockchain, Internet of Things (IoT), Robotics, Quantum Computing, and 6-G technology. 
• Digital Transformation: They issued a joint statement on advancing digital transformation covering digital infrastructure, fintech, and cybersecurity. 
  • India will share its expertise in digital public infrastructure, like Aadhaar and UPI, with ASEAN nations. 
• ASEAN-India Trade Growth: In the last ten years, India-ASEAN trade had doubled  to over USD 130 billion. 
  • However, India’s trade deficit with ASEAN has risen to USD 44 billion in FY23, compared to USD 8 billion in FY13. 
  • India is ASEAN’s sixth largest trading partner and eight largest source of FDI among ASEAN Dialogue Partners.  
• Trade in Local Currency: Some ASEAN countries and India have started trading in local currencies, with Malaysia leading the way and other ASEAN nations expected to follow.  
• Investment Flows: India and ASEAN's Global Value Chains (GVCs) have grown, with total investments surpassing USD 125 billion from 2000 to 2023. 
• Financial Integration: In June 2024, the Reserve Bank of India officially joined Project Nexus with ASEAN which enables real-time cross-border transactions between India’s UPI and Singapore’s PayNow system. 
• Regional Security: Both agreed to enhance the ASEAN-India Comprehensive Strategic Partnership for regional peace, stability, and prosperity, aligned with the ASEAN Outlook on the Indo-Pacific (AOIP) and supported by India’s Act East Policy (AEP). 
• Code of Conduct for the South China Sea: Both supported full implementation of the Declaration on the Conduct of Parties (DOC) in the South China Sea and called for an effective Code of Conduct (COC) in line with UNCLOS 1982. 
• Defence and Security Cooperation: Both agreed to ensure maritime security, counter-terrorism, cybersecurity etc through joint military exercises and naval port calls. E.g., ASEAN India Maritime Exercise.

What is India's 10-Point Plan for ASEAN Cooperation? 

• ASEAN-India Year of Tourism 2025: India will contribute USD 5 million for joint tourism activities. 
• Celebrating a Decade of the Act East Policy: Events like Youth Summit, Start-up Festival, Hackathon, Music Festival, and Think Tank initiatives will be organised. 
• Women Scientists Conclave: ASEAN-India Science collaboration through a conclave for women scientists. 
• Educational Scholarships: Doubling Nalanda University scholarships and offering new scholarships for ASEAN students in Indian agricultural universities. 
• Trade Agreement Review: The ASEAN-India Trade in Goods Agreement will be reviewed by 2025. 
• Disaster Resilience: India to provide USD 5 million to strengthen ASEAN’s disaster resilience. 
• Health Ministers’ Track: Regular interactions between ASEAN and Indian health ministers to build health resilience. 
• Cyber Policy Dialogue: Establishing an ASEAN-India dialogue for digital and cyber resilience. 
• Green Hydrogen Workshop: Supporting ASEAN’s energy transition with a green hydrogen workshop. 
• Climate Resilience Initiative: ASEAN leaders invited to join India’s “Plant a Tree for Mother” campaign.