Asian

Why in the News?

The 19th ASEAN-India summit was held in Phnom Penh, Cambodia.

Key Points:

About 

ASEAN: 

• It is a regional grouping that promotes economic, political, and security cooperation. It was established on 8 august 1967 in Bangkok, Thailand.
• ASEAN brings together ten Southeast Asian states – Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
• Its chairmanship rotates annually, based on the alphabetical order of the English names of Member states.

Why is ASEAN important for India?

Strategically

• ASEAN nations are at the intersections of major land and sea routes.
• ASEAN is “central” to India’s Act East policy and its wider vision of the Indo-Pacific. 

Energy

• ASEAN countries, particularly Myanmar, Vietnam, and Malaysia can potentially contribute to India’s energy security.
• Oil and natural gas deposits in the South China Sea region.

Economy

• In terms of income, the India-ASEAN community is roughly the size of the EU
• India – ASEAN is expected to grow faster than the rest of the world due to a favorable demographic profile and growing market for goods and services.
• India’s trade relations are shifting from West economies towards the East, comprising Japan, China, Korea, and ASEAN.
• India-ASEAN linkage provides for large-scale movement of people, capital, ideas, and creativity.

Performance of ASEAN:

• ASEAN Failed to prevent the 1997 financial crisis.

• ASEAN has been too soft on the authoritarian regime of Myanmar.

News Source: The Indian Express