Analysis Of ASEAN- India Science, Technology & Innovation Cooperation And ASEAN Nations

Policy Update
Mohd Asif

Background

India has been a dialogue partner of ASEAN (Association of Southeast Asian Nations) since 1992. In 2012, marking 20 years of this partnership, the relationship was elevated to a strategic level during a commemorative summit.

ASEAN comprises 10 member states: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.

Collaboration in science, technology, and innovation began formally in 1996 with the establishment of the ASEAN-India Working Group on Science and Technology (AIWGST). Initially funded by the ASEAN-India Fund (AIF), this cooperation gained dedicated support in 2008 with the creation of the ASEAN-India S&T Development Fund (AISTDF), funded jointly by the Ministry of External Affairs (MEA) and the Department of Science and Technology (DST) with a budget of $5 million.

This collaboration focuses on areas such as the blue economy, healthcare, climate action, and sustainable development. The goal is to use science and technology to reduce gaps between urban and rural areas, particularly by developing affordable and accessible technologies. The DST is the nodal agency for implementing these initiatives from India’s side. The ASEAN-India Plan of Action (2021–2025) was adopted to achieve the shared goals of peace, progress, and prosperity. This plan emphasizes ASEAN community building, regional integration, narrowing development gaps, and enhancing connectivity.

Objective of ASEAN (AISTC)

The main objectives of ASEAN-India Science, Technology, and Innovation cooperation are based on the following principles-

Encouraging joint research and development in key areas like health, infectious diseases, environmental management, climate change, agricultural technologies, alternative energy, biodiversity, food processing, advanced materials, and space technology.
Advancing Biotechnology supporting capacity building and joint R&D initiatives in biotechnology for shared benefits.
Undertaking projects and activities supported by the ASEAN-India Science and Technology Development Fund.

Importance of ASEAN for India

Historical Context and Levels of Partnership:

1992: India became a Sectoral Dialogue Partner of ASEAN, marking the beginning of formal engagement.
1995: India was elevated to the status of a Dialogue Partner, expanding interactions to the foreign ministerial level.
2002: The partnership advanced to the level of Summit Meetings, with the first summit held in the same year.
2012: The 20th-anniversary Commemorative Summit in New Delhi upgraded the relationship to a Strategic Partnership.
2018: During the 25th-anniversary summit, India and ASEAN agreed to focus on maritime cooperation.
2022: Celebrating 30 years of ASEAN-India relations, the partnership was elevated to a Comprehensive Strategic Partnership during the ASEAN-India Friendship Year.

ASEAN represents a vital economic bloc for India, offering access to a combined market of over 650 million people with a collective GDP of $3.2 trillion.

ASEAN-India Economic and Strategic Significance

Boost in Trade: The ASEAN-India Free Trade Area elevated bilateral trade to $110.39 billion in 2021-2022.
ASEAN is one of India’s major trading partners, contributing 11% to India’s global trade.
Singapore’s Role: Among ASEAN nations, Singapore is India’s largest trading partner and ranks as India’s sixth-largest trade partner globally. In the last fiscal year, Singapore emerged as India’s top source of FDI, contributing $11.77 billion.
Strategic Rebalancing:
Given the growing geopolitical tensions, especially with China, ASEAN serves as a critical strategic partner for India.
India’s Act East Policy and ASEAN’s Outlook on the Indo-Pacific align as complementary frameworks promoting regional stability.
The elevation of ASEAN-India ties to a Comprehensive Strategic Partnership in 2022 underscores this alignment.

Platforms for Cooperation

India’s active engagement with ASEAN through forums like the East Asia Summit and the ASEAN Regional Forum bolsters its role as a comprehensive security provider in the region. This collaboration also serves to counterbalance China’s influence and promote a rules-based international order.

Challenges in India-ASEAN Relations

Trade Imbalance India’s trade deficit with ASEAN has grown significantly, more than doubling since the implementation of the Free Trade Agreement (FTA) in 2010. This imbalance is particularly evident in sectors like electronics and machinery. For instance, in FY 2022-2023, India’s exports to ASEAN stood at $44.04 billion, while imports from ASEAN were significantly higher, reaching $87.58 billion.

Infrastructure Connectivity: While progress has been made in digital and cultural linkages, physical infrastructure connectivity remains underdeveloped. Major projects, such as the India-Myanmar-Thailand Trilateral Highway, have faced prolonged delays and remain incomplete. Similarly, the Kaladan Multi-Modal Transit Transport Project has encountered various challenges. These delays hinder trade flow and people-to-people connectivity.

Geopolitical Balance – The ‘China Factor’:
China’s growing influence in Southeast Asia poses a complex challenge for India-ASEAN relations. ASEAN countries increasingly find themselves caught between China’s economic incentives and their security concerns. India’s efforts to counterbalance China through alliances like the Quad have received mixed reactions from ASEAN nations, which are hesitant to side with either China or India openly. The South China Sea dispute further complicates this dynamic. For instance, Countries like Vietnam and the Philippines welcome India’s active role in the region. Other ASEAN members, however, remain more cautious on this issue.

Regulatory Barriers:
Divergent regulatory standards and procedures between India and ASEAN create significant non-tariff barriers to trade and investment. For example, Differences in food safety standards and certification processes hinder agricultural trade. The absence of mutual recognition agreements in professional services limits the mobility of skilled professionals.

Way forward

Foster stronger collaboration and scientific engagement between India and ASEAN countries. Link ongoing research initiatives and networks across India and ASEAN nations. Build capacity by training young researchers and strengthening institutions, while promoting skill development and research opportunities.

India must prioritize a comprehensive review of the ASEAN-India Free Trade Agreement (AIFTA) to address trade imbalances. This could involve renegotiating tariffs to benefit sectors like pharmaceuticals, textiles, and IT services, where India holds a competitive edge. For example, India could seek phased tariff reductions on sensitive agricultural products while pushing for improved access to ASEAN markets for its services sector. Accelerating key connectivity projects like the India-Myanmar-Thailand Trilateral Highway and extending it to Cambodia, Laos, and Vietnam is essential. India should propose a broader connectivity plan aligned with ASEAN’s Connectivity Master Plan 2025, incorporating digital projects like the India-ASEAN Submarine Cable Project. Timely completion of such initiatives could boost India-ASEAN trade by 20-30% in the medium term.

India should focus on enhancing manufacturing competitiveness by expanding the Production-Linked Incentive (PLI) scheme to sectors tied to ASEAN trade. Collaborative projects like an India-Vietnam Electronics Manufacturing Hub could integrate India’s software skills with Vietnam’s hardware capabilities, strengthening regional value chains. Proposing an ASEAN-India Energy Partnership could drive collaboration in clean energy transitions, renewable technologies, semiconductors, and energy efficiency. Joint research in green hydrogen and energy storage would align India’s energy diversification with ASEAN’s sustainability goals.

Strategic cooperation in maritime security should also be deepened. India can offer capacity-building assistance in maritime domain awareness, anti-piracy operations, and disaster relief. Leveraging the Information Fusion Centre for the Indian Ocean Region (IFC-IOR) and initiating joint defense production with countries like Singapore and Indonesia could enhance trust and interoperability. Finally, India could launch an ASEAN-India Green Partnership to address climate change, renewable energy, and sustainable development. Technology transfer in solar energy and joint research in climate-resilient agriculture would position India as a key partner in tackling environmental challenges and shared vulnerabilities.