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How to forge an India-ASEAN century for regional stability

The Business Guardian

|

November 02, 2025

PM Modicalled for an early review and modernization of the India-ASEAN Trade in Goods Agreement (AITIGA), which was signed in 2009. He stressed that updating the 15-year-old pact is necessary to unlock the full economic potential between India and the ASEAN bloc.

- PRABHU DAYAL

How to forge an India-ASEAN century for regional stability

Prime Minister Narendra Modi virtually attends the 22nd ASEAN-India Summit 2025, from New Delhi on Sunday. ANI

The recent 22nd ASEAN-India Summit was held on October 26, 2025 in Kuala Lumpur, Malaysia. Prime Minister Narendra Modi participated virtually in the Summit. While PM Modi has consistently attended ASEAN summits in the past, his decision to skip the in-person meeting this year was seen by some as a calculated move to manage priorities amid shifting geopolitical dynamics and domestic political needs.

India’s official explanation why PM Modi did not attend the Summit in person was due to scheduling issues related to the ongoing Deepavali celebrations in India. However, media reports and analysts point to a number of strategic and domestic political factors. One of the most cited reasons was avoiding an awkward encounter with the US President Donald Trump, who also attended the summit. Relations between India and the US have become strained due to trade disputes, with the Trump administration imposing 50% tariffs on Indian exports partly in response to India’s continued purchase of Russian oil. New Delhi was wary of a meeting between PM Modi and Trump with no clear positive outcome.

ASEAN is important for India due to its strategic location in the Indo-Pacific, its role as a major economic partner and its importance for regional stability and security. Key benefits include enhanced trade and connectivity, a counterbalance to China’s influence, and a platform for maritime security cooperation. ASEAN also serves as the gateway for India’s “Act East” policy, promoting its influence in a vital and dynamic region. Deep-rooted historical, cultural, and civilizational links provide a strong foundation for diplomatic relations. The large Indian diaspora in Southeast Asia acts as a bridge between the two regions.

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