Wednesday 2 December 2015

Modi Courts ASEAN


Act East policy elucidated by Modi at the 12th Indo-ASEAN Summit meet of Nay Pyi Taw in 2014 received a fresh impetus with his recently concluded visit to Malaysia and Singapore. During his visit Modi has addressed the 13th Indo-ASEAN summit and the 10th East Asian Summit (EAS) at Kuala Lumpur. Robust regional organization- Association of South East Asian Nations (ASEAN) comprising of ten South East Asian nations have a crucial role in global stability partly due to its strategic location and the economic prosperity of the nations. These nations include- Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, Laos, Cambodia, Brunei and Myanmar.  India’s engagement with ASEAN began in 1992 and was formally elevated to Indo-ASEAN summit in 2012 at Phnom Penn, Cambodia (on par with China, Japan and South Korea), following which summits are held annually. Over a period of time India and ASEAN have signed joint declarations for cooperation on combating international terrorism (2003) under the Treaty of Cooperation in South East Asia (TAC), Plan of action for partnership for Peace, Progress and Shared Prosperity (2004-2010). In 2012 ASEAN-India Eminent Persons Group (EPG) was established to explore ways to deepen and widen partnership. Finally in 2015, India established a separate Diplomatic Mission to ASEAN to work in tandem with the ASEAN secretariat in Jakarta. ASEAN is India’s fourth largest trading partner of India while India is its sixth biggest trade partner with volume of trade accounting for $76.52 billion. But India’s relations with ASEAN steadily dwindled due to the meek foreign policy stratagem of UPA-II. The last bilateral visit to Malaysia by an Indian Prime Minister was in 2010.

With China positing itself as an emerging superpower, India can no longer afford to remain inactive. The latest aggressive posturing of China and the escalating frailties between China and US has turned the South Asian region into a fiefdom of rivalry. Nine dashed line doctrine advocated China has already turned the region hostile with Beijing laying claims over 90% of South China Sea (SCS). Further its undeterred, frantic land reclamation activities intensified the conflicts in the region. Six of its neighbors- Taiwan, Philippines, Vietnam, Brunei, Malaysia and Cambodia intimidated by China’s aggressive posturing are now reassessing their strategies and looking forward a counter balance in the region. Burgeoning frictions prompted ASEAN countries to look at India which is considered as a “benign power” in the region, an effective counterbalance with its size and market potential on par with China. India too asserted its concerns over the growing hostilities in the SCS and raised pitch for freedom of navigation in the region and resolution of disputes in SCS in accordance to United Nations Convention on the Law of the Seas (UNCLOS). Having recently settled the long pending maritime dispute with Bangladesh though international arbitration, it showcased it commitment in resolving the issues peacefully. Interestingly, in the recently concluded joint statement with Philippines its referred to SCS as the West Philippine Sea at the insistence of Manila who have moved its dispute with China over SCS to the International Court of Justice, Hague. India is thus slowly emerging as a balancing power in the region. To challenge China, India should not only evolve into a robust economy but also forge strong defence ties with countries in this region. To this end, India has initiated talks Free Trade Agreement (FTA) with ASEAN in 2012 which was successfully ratified in January 2015 and came into force on July 1st 2015. With this the trade between India and ASEAN is expected to reach $200 billion by 2022.

During this visit, Modi dynamically steered India’s pursuit of engaging in the race of regional economic integration by expediting talks on Regional Comprehensive Economic Partnership (RCEP), a free trade agreement between ASEAN, India, China, Japan, South Korea, Australia and New Zealand. At the India- ASEAN summit, Modi has announced a $1 billion credit line for the projects that promote physical digital connectivity between India and ASEAN and announced e-VISAs for the nationals of all the 10 countries. Modi stressed on the need for renewed cooperation between parties to counter the menacing global threat of terrorism through adoption of the Comprehensive Convention on International Terrorism and reiterated the need for peaceful settlement of the territorial and maritime disputes in SCS. He called for evolving specific strategies to enhance cooperation in the fields of maritime security, counter-piracy, humanitarian and disaster relief. New Delhi intends to create project development countries to develop manufacturing hubs in countries like Laos, Cambodia, Malaysia and Vietnam. Science, Technology and Innovation have been three important areas of cooperation which eventually laid foundation for stronger economic partnership. Hence India would enhance the India-ASEAN Science and Technology Development Fund from $1 million to 5 million. Also India-ASEAN Innovation Platform would be set up to promote commercialization of low cost technologies, technology transfers and collaborative R & D projects. Another vital area of cooperation is space and India aspires to develop a station in Vietnam, Modi offered indigenously developed GPS aided Geo augmented navigation (GAGAN) systems to ASEAN. Modi witnessed the signature ceremony of the Kuala Lumpur Declaration that aims to establish an ASEAN Economic Community (AEC) which aims to create an environment for free movement of capital and commodities among the ASEAN community by December 31st 2015. Emphasizing the importance of connectivity on prosperity, Modi announced the trilateral Highway between India-Myanmar-Thailand, famed as Road to Mandalay, is expected to be completed by 2018. The 3200 km trilateral highway will connect Moreh in Manipur to Mae Sot in Thailand, will run through Mandalay in Myanmar. This along with Kaladan Multi-modal transit transport model which will connect Kolkata to Sittwae port in Myanmar and then to Mizoram by river and road form the corner stone for Act East Policy. The framework for the Kaladan port cum inland waterway was signed in 2008 and is likely to be completed by 2015. Modi has also proposed to cooperate for sustainable ocean economy or blue economy. Besides he also intensely wooed Malaysian investors and encouraged them to invest in India by affirmatively articulating the positive reports on Indian economy projected by various western entities.

Speaking at the 10th East Asian Summit (EAS) Modi taking a dig at Pakistan and China alternatively opined that no country should support or use terrorism and that territorial disputes should be resolved as per agreed code of conduct. He opined that countries should delink religion from terrorism and make an effort to inculcate human values. He suggested that Asia-Pacific countries must strive to enhance cooperation in cyber security, outer space and on non-proliferation of nuclear weapons. He also had bilateral talks with Japan Prime Minister Shinzo Abe and Chinese Premier Li Kequiang along the sidelines of the meet.

Prime Minister of Malaysia Najib Razak rolled out a red carpet to Modi and during the crucial bilateral talks it was intended to intensify strategic cooperation. Three MoU’s on cyber security, public administration and culture were signed. Modi sought Malaysian cooperation in expansion and up gradation of infrastructure, Make in India and Smart Cities Project. Bilateral trade between India and Malaysia stands at $14 billion with Indian imports which includes mineral fuels, animal and vegetable oils valued at $9.7 billion. Malaysian investments in India worth over $ 7 billion are in infrastructure and construction sectors while Indian companies like Mahindra, Wipro, TCS, Reliance, IRCON, Kirloskar, Bajaj, L&T have invested over $2.3 billion in Malaysia. Both sides have discussed on the possibility of revving up defence cooperation including joint production. Modi along with his Malaysian counterpart inaugurated Torana Gate a gift from India marking the launch of Little India Project. It is an intricately sculpted structure inspired by the Buddhist Stupa of Sanchi. Later Modi unveiled statue of Swami Vivekananda at the Rama Krishna Mission and then addressed over 15,000 Indian Community at the Malaysia International Exhibition and Convention Centre. The 2 million strong Indian Diaspora account 8% of Malaysian population. Modi thrilled the audience with his ebullient oratory starting off by addressing the gathering in Tamil and then continued his extempore in English. He reaffirmed that India’s strength lies in its unique diversity and paid homage to the India’s freedom fighters and soldiers who fought in the World War-II and commended the contributions of Indian community during post-quake period in Gujarat. He announced a grant of $1 million to Indian-Students Trust Fund for financial assistance to Malay-Indian student and pronounced that Indian Culture Centre will be named after Subash Chandra Bose.

Modi travelled to Singapore on 23rd November and delivered the 37th Singapore lecture on organized by the Institute of South East Asian Studies- Yusof Ishak Institute. Modi earlier visited Singapore in March 2015 to pay homage to the architect of the modern Singapore Lee Kuan Yew. India was the second country to establish diplomatic relations with Singapore in 1965 immediately after its independence. India supported Singapore’s membership to UN and Non-Aligned Movement paving way for international recognition of a fledging nation. Marking 50 years of establishment of diplomatic relations between India and Singapore, Modi held ode to the exceptional economic odyssey of Singapore which is source of eternal inspiration for countries in modern era. Speaking about rise of Asia, Modi enunciated that the wisdom of ancient cultures and religions, dynamism of its youth force has been driving force of the continent. He reiterated India’s commitment to work closely with nations in this region to ensure that the oceans, space and cyber remain areas of shared prosperity and not turn into avenues of disputes. Contemplating on his vision for India, he expressed firm conviction towards reforming laws, policies, institutions, regulations and processes to make India the ideal place for investment destinations. Indeed Singapore is India’s largest trading partner in South East Asia and also the biggest source and destination of Indian investments. Singapore has played a vital role in starting first IT park at Bengaluru and currently helping in building state capital of Andhra Pradesh, Amaravati. Modi finally appealed that it is time India- Japan-China-Singapore to come together to realize the vision of Asian century.  He also paid tribute to Lee Kuan Yew, founder of Singapore who believed in latent potential of India and her role abroad more than many other Indians.

Modi had bilateral meetings with his counterpart Lee Hsein Loong, both countries have signed 10 pacts and released a joint statement on strategic partnership. India and Singapore has elevated ties to strategic partnership to broaden existing areas of cooperation from “politics, defence, and security cooperation, economic, cultural and people-to-people relations”. Upgradatioon of the defence partnership will elevate dialogue to ministerial level giving more strength to the strategic partnership. The existing joint military exercises and training of armies, navies and air forces will continue. Further both countries will collaborate in defence technology, co-development and co-production. The other major areas of cooperation include- maritime security, sharing of white-water information, bilateral coast guard cooperation, counter-terrorism, transnational organized crime. A MoU was signed between Indian Computer Emergency Response Team (CERT-IN) and Singapore Emergency Response Team (Sing CERT), Singapore’s Cyber Security Agency on cyber security. Other MoUs were signed in the areas of combatting illicit narcotic drugs trafficking, art and culture, civil aviation, town planning and planning bodies. While Singapore sought doubling of flights from India, Modi wanted Singapore to play a key role in up gradation of railway stations in India.

At the India- Singapore Economic Convention, Modi has made a huge pitch for India as a manufacturing hub and Make in India initiative was launched to bolster manufacturing sector. He also assured that India is strongly committed to combat climate change and tried to attract investors from Singapore. Modi became the first ever Indian Prime Minister to visit the Indian National Army (INA) Memorial at Esplanade Park in Singapore to pay homage to the INA soldiers and officers who lost their lives in battle for India’s independence.  He also toured the Institute of Technical Education (ITE) headquarters and spent time at the ITE College Central’s Maritime Training Centre, Aerospace hub where students were given training in inspection and maintenance of various aircrafts. It is believed that Modi is keen on bringing home this vocational and technical education to be imparted to Indian youth under the Skill India Initiative. Modi addressed 18,000 strong crowd Indian amidst rousing chants at Singapore Expo Halls in eloquent Hindi. Praising the emphatic rise of island state, Singapore he cited that India needs to learn many lessons.

Modí’s visit to Malaysia and Singapore has been a resounding success. India is now contemplating on expanding its strategic footprints in the ASEAN region and hence significantly elevated its engagement to strategic cooperation. Till now Indian foreign policy plagued by diffidence and inaction has remained engrossed in the prolonged phase of diplomatic inaction. Modi has displayed a spark of ambitious engagement with the Tiger Economies of the Asian continent that have great strategic and economic importance. Currently, South East Asian region has become home of fierce conflicts with China intimidating neighboring countries and resolutely defending its claims. ASEAN countries are now looking to India as a strategic counter balance. India must now walk the talk and emerge as a robust and viable economy to rise up to the expectations of the ASEAN countries and to defend it quintessence resurgence.

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