India is now a Comprehensive Strategic partner and is engaged in at least 30 high level dialogues at the ministerial level in diversified fields with Asean, which consists of 1.85 billion people, and has a combined GDP of $ 3.8 trillion. India has therefore provided this relationship a direction of economic integration, market access, investment and trade, besides emphasizing the age old cultural and people to people ties. The North East of India will benefit immensely with this linkage. Bilateral trade has risen, reaching US$ 110 billion in 2022. The creation of new and resilient supply chains between India and Asean could focus on digital trade and bring down the costs. Asean has invested US$117.88 billion between April 2000 to February 2022 into India, and India has invested US$55.5 billion in Asean between April 2019 till March 2022. Trade and Investment flows, however, are predominantly to and from Singapore, and India has flagged the need for diversification.

Connectivity is a key aspect of improving the economic relationship with Asean – through land, sea, and air. India and Asean will both benefit if the construction of the trilateral highway which will connect India, Myanmar and Thailand, and will later expand into Laos, Cambodia and Vietnam is completed. The Kaladan multi modal transport project, will link Kolkata to Sittwe port in Myanmar, extending into Mizoram by the river and land route. Both these projects have been stalled due to the internal political strife in Myanmar.

India is also partnering with Asean states in enhancing blue economy cooperation; investing in development of desalinization technologies, harvesting the bio diversity, and searching and excavating marine minerals in the seas. It is setting up coastal surveillance networks and constantly enhancing the capacity for shared Maritime Domain Awareness with its Asean partners; concentrating on defence arrangements at a bilateral level and enhancing the scope of naval exercises with Asean as well as individual countries within the grouping. Besides the $50million Asean-India Cooperation Fund (later augmented in 2016 by another US$50), India has set up a $1 million Green Fund (later augmented to $5 million). In 2016, the corpus of the Fund meant for enhancing Science and technology with Asean was also enhanced from $1 million to US$ 5 million.

After the recent elections in India, India and Asean have set up eight sub-committees under the India Asean Free Trade Agreement Joint committee for the review of the pact. The AITIGA Joint Committee aims to conclude the review in 2025 and address the long- standing demand of Indian businesses to eliminate barriers and misuse of the trade pact. At the India – Asean Foreign Ministers meeting in Laos on 26 July 2024, India has conveyed that Digital connectivity, defense and maritime cooperation, health and traditional medicine as well as preservation of cultural heritage will continue to be the priority areas for India – Asean cooperation. It will work with Asean to achieve a breakthrough in the situation of conflict in Myanmar; and in keeping the sea lanes of communication open and free in the South China Sea and in the Indo Pacific. It will continue to align its Indo Pacific Oceans Initiative (IPOI)- with the Asean Outlook on the Indo Pacific (AOIP) bilaterally and in partnership with its Quad partners – USA, Australia and Japan. India and Asean will also look at shipping joint ventures, and related concessions through an Agreement on maritime transport and work towards an Asean India comprehensive air services agreement which will benefit trade, investments and tourism. Collaboration in areas such as digital connectivity, cyber security, financial technology, start-ups and innovation, transhipment hubs, empowerment of youth and women and the development of micro, small and medium enterprises will be an important driver in moving India – Asean relations to a higher pedestal.