2. This year is the Golden Jubilee of ASEAN
This year is the Silver Jubilee of ASEAN – Indian Relations(1992)
Both are natural partners that share Geographical, Historical and Civilization ties.
1992 : India started relations with ASEAN
2010 : Signed Free trade Agreement
2012 : Upgraded relations to a strategic partnership by focusing on defense and security ties
2015 : Service trade and Investment agreement
Trade : 70 billion

3. Historical Background :
The Association of Southeast Asian Nations or ASEAN was established on 8 August 1967 in Bangkok by the five original Member Countries, namely, Indonesia, Malaysia, Philippines, Singapore, and Thailand.
Brunei Darussalam joined on 8 January 1984,
Vietnam on 28 July 1995,
Laos and Myanmar on 23 July 1997,
Cambodia on 30 April 1999.

4. OBJECTIVES :
The ASEAN Declaration states that the aims and purposes of the Association are:
To accelerate the economic growth, social progress and cultural development in the region through joint endeavours in the spirit of equality and partnership in order to strengthen the foundation for a prosperous and peaceful community of Southeast Asian nations, and
To promote regional peace and stability through abiding respect for justice and the rule of law in the relationship among countries in the region and adherence to the principles of the United Nations Charter.
In 1995, the ASEAN Heads of States and Government re-affirmed that “Cooperative peace and shared prosperity shall be the fundamental goals of ASEAN.”

5. FUNDAMENTAL PRINCIPLES
The Treaty of Amity and Cooperation (TAC) in Southeast Asia, signed at the First ASEAN Summit on 24 February 1976, declared that in their relations with one another, the High Contracting Parties should be guided by the following fundamental principles:
Mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity of all nations;
The right of every State to lead its national existence free from external interference, subversion or coercion;
Non-interference in the internal affairs of one another;
Settlement of differences or disputes by peaceful manner;
Renunciation of the threat or use of force; and
Effective cooperation among themselves.

11. Why ASEAN is important for India?
ASEAN is the most powerful instrument to accomplish the purpose of the Act East Policy (AEP). Since it renamed ‘Look East’ as ‘Act East’ in 2014, the NDA government has sought a more “dynamic” and “action-oriented” approach in its relations with not just ASEAN, but also the wider Asia-Pacific, with emphasis on Japan.
Southeast Asia has become a point of focus in terms of India’s diplomatic engagements given the South Asian Association of Regional Co-operation (SAARC) becoming virtually ineffective because of Pakistan’s non-cooperation in a number of issues.
Focusing on trade in services with ASEAN will give India an opportunity to use its competitive strength to become the regions services export hub.
The ASEAN occupies a central place in the “security architecture” of the Asia-Pacific region and has the “unique ability” to reflect the larger interests of the world.
ASEAN will provide India to connect itself with global value chains. ASEAN has been a great region in establishing international production network (IPN). The Indian government has taken initiative to provide project development fund to encourage integration of Indian producers into the grouping’s regional value chains.. This initiative plans to help create manufacturing hubs in Cambodia, Laos, Myanmar and Vietnam leading to the establishment of a new regional economic order within ASEAN.

12. large and growing domestic markets;
6. The northeastern states are both the facilitators as well as the beneficiaries of Indo-ASEAN relationship and the larger Asia Pacific regions. A strong, stable and prosperous northeast is of outmost important to India.
7. The Japanese financial services major has dubbed India and ASEAN-5 (Indonesia, Malaysia, the Philippines, Thailand and Vietnam) as “Asia’s tiger cubs”, and FDI inflows to these nations will increase from around $100 billion per year now to around $240 billion by Factors that are expected encourage FDI into India and ASEAN-5 include
large and growing domestic markets;
reforms focused on improving infrastructure and the ease of doing business;
a more open and liberal FDI regime;
sound economic management and political stability;
availability of low-cost labour.
8. ASEAN will also play an instrumental role in India is the Regional Comprehensive Economic Partnership (RCEP). RCEP consists of
a third of the world’s economy and
45 percent of the global population with a combined gross domestic product of $21.3 trillion and
accounting for about 40 percent of world trade.

14. Recent initiatives:
India has announced a line of credit worth $1 billion to promote projects that support physical and digital connectivity with ASEAN, and a Project Development Fund with a corpus of $77 million to develop manufacturing hubs in Cambodia, Laos, Myanmar and Vietnam.
India contributes to three major cooperation funds with ASEAN, namely the
ASEAN-India Fund,
ASEAN-India Science and Technology Development Fund
ASEAN-India Green Fund.
Besides that discussions on an India-Myanmar-Thailand motor vehicles agreement are underway. A task force for maritime connectivity and ASEAN-India working groups on regional air services and shipping arrangements have also been set up.
India had also put forward specific proposals regarding the installation of a regional high-capacity fibre-optic network, supplemented by national rural broadband networks and digital villages in remote areas.