S Jaishankar pushes for firmer ties with ASEAN to seize post-Covid prospects

(Image: Reuters)

External Affairs Minister S Jaishankar on October 7 pushed for closer ties between India and ASEAN member countries to seize emerging opportunities in the aftermath of Covid the pandemic.

Addressing the Indo-ASEAN Business Summit and Expo, Jaishankar made close overtures to the 10-nation bloc. India's relations with the Association of Southeast Asian Nations (ASEAN) hit a roadblock after New Delhi decided to pull out of a mega regional free trade deal in 2020.

"With the pandemic now proving to be a bigger challenge," Jaishankar said, "the success of the Act East Policy is reflected in drawing India into Indo-Pacific."

"There is no doubt that ASEAN is a major hub for India's economic engagements. As it develops, it is natural that we would like to revisit the level of ambition that we have set in the partnership."

That is also influenced by autonomous changes in the region, Jaishankar stressed, hinting at changing business and political ties of the countries in the region with China in the aftermath of Covid-19.

"From the prolonged crisis of the last two years, four areas have come into sharp focus for international business cooperation. Resilient and reliable supply chains, health sector, digital for development, green and sustainable development, They should constitute the core agenda for us," Jaishankar said.

Prime among these was the supply chains on which India is actively working with multiple nations as part of its plan to reduce imports from China and ensure more business leave China and set up in India. Jaishankar said Covid-19 has given an impetus of the diversification of the global value chain, that was already in the process.

The external affairs minister also stressed on India's democratic credentials and stated that the country's relationship with the bloc has always been based on equal partnership.

Repeatedly stating that India's existing trade and business relations with the ASEAN grouping can, and must be 'built back better' after the pandemic recedes, Jaishankar said a greater emphasis must be placed on 'trust and transparency, resilience and reliability and also on choices and redundancies'.

India's overall trade with ASEAN stood at $78.9 billion as of 2020-21. Both sides are reviewing the existing free trade treaty, after the Narendra Modi government protested that the deal des not provide India with enough incentives and that the ASEAN nations have been the ones who have reaped the majority of benefits till now.

Exports to ASEAN, counted at $ 31.48 billion make up for 10.7 percent of India's overall outbound trade, whereas, imports worth $47.4 billion make up for 12 percent of India's overall imports.