ASEAN-China Relations: Realities and Prospects

10. India's Approach to ASEAN and Its Regional Implications

128 Hu Shisheng 10 India’s Approach to ASEAN and Its Regional Implications Hu Shisheng RECENT DEVELOPMENT OF INDIA-ASEAN RELATIONS The Phnom Penh ASEAN Summit held in November 2002 can be regarded as a watershed, which divides the development of India-ASEAN relations into two phases. In the first phase, India-ASEAN relations were mainly tentative and partial. India at this time focused largely on building up her relations with individual ASEAN countries, with different emphases and values for each. For example, in the trade, investment, and science and technology R&D dimension, New Delhi had stronger relations with Singapore, Thailand and Malaysia; in the defence and strategic dimension, India put much stress on her relations with Vietnam and Myanmar; in the area of natural resources cooperation (with energy cooperation in particular), India paid much attention to her relations with Indonesia, Malaysia and Myanmar; while with regard to security cooperation, especially in combating cooperatively against antigovernment forces, India attached great importance to her relations with Myanmar and Vietnam. Besides, India has selected Myanmar and Indochinese countries to be its major recipients of economic assistance. The most outstanding feature of India-ASEAN relations in the first phase is the focus on economic cooperation and trade promotion. From a 10 ASEAN-China Relations Ch 10 5/8/05, 9:03 AM 128 India’s Approach to ASEAN and Its Regional Implications 129 Sectoral Dialogue Partnership established in 1992 to a Full Dialogue Partnership established in July 1996, building up close and powerful economic and trade relations and mutual investment had always been the priority between India and ASEAN countries. Thanks to such efforts, bilateral trade and investment had increased rapidly in the first phase. The bilateral trade volume had increased by 16.5 per cent annually, from US$2.9 billion in 1993 to US$9.9 billion in 2001. The investments from ASEAN countries also steadily rose to nearly 15 per cent of the total approved investments in India in 1995. According to India Investment Centre statistics, Indian joint ventures in ASEAN in 1996 numbered 118, with Indonesia 18, Malaysia 39, Singapore 37, and Thailand 24.1 During this phase, 1996 was a landmark year for Indo-ASEAN cooperation. In July 1996, at the Fifth ASEAN Summit, India became simultaneously a Full Dialogue Partner as well as a formal member of the ARF at the summit held in Jakarta, Indonesia. The entry into ARF put India at par with Western countries and China vis-à-vis ASEAN regional security, and economic and political arrangements. In the second phase, the relations between India and ASEAN were much more comprehensive and more institutionalized. India’s participation in the Phnom Penh ASEAN Summit in November 2002 and the initiation of both “India-ASEAN Summit” and “India-ASEAN Business Summit” have all marked the great-leap-forward of a decade-long “Look East” strategy. It signifies in at least two aspects. One is that ASEAN has acknowledged the economic, political and strategic importance of India; the other is that ASEAN would very much like to deal with India collectively and in unity. Besides, Indian Prime Minister Atal Bihari Vajpayee’s Southeast Asian tour to participate in the ASEAN summit in Bali, Indonesia, in October 2003 was furthermore regarded by India’s mass media as opening a brand new chapter of the “Look East” strategy. During this tour, the Indian prime minister signed three landmark documents with ASEAN.The first is the framework agreement for comprehensive economic cooperation between India and ASEAN. The framework agreement spells out a programme for free trade agreements in goods, services, investment, areas of economic cooperation and an “early harvest” programme. Both sides have pledged to formally set up an India-ASEAN FTA by the year 2011. This framework agreement is the most important document signed by India and ASEAN. The second is that India signed the Treaty of Amity and Cooperation in Southeast Asia. This indicates that ASEAN has acknowledged India’s significance to ASEAN, believing that India can play a positive role in promoting peace and stability in the region. This would further cement India-ASEAN bilateral relations. The third is that India and ASEAN 10 ASEAN-China Relations Ch 10 5/8/05, 9:03 AM 129 130 Hu Shisheng signed a joint declaration on combating terrorism. Both sides agree that they would strengthen cooperation in the areas of information and intelligence sharing, law enforcement, etc. This is...