In 2026, the relationship between India and the Association of Southeast Asian Nations (ASEAN) sits at the intersection of trade, security and strategic balance. What began decades ago as economic outreach under the “Look East” policy has evolved into a central pillar of India’s Indo-Pacific strategy.

ASEAN is not just a regional bloc for India. It is a strategic hinge between the Indian Ocean and the Pacific — and between competing great-power visions.

Trade, Integration and Missed Opportunities

ASEAN is one of India’s largest trading partners, with bilateral trade crossing $110 billion in recent years. The India–ASEAN Free Trade Agreement, in force since 2010 for goods and later expanded to services and investment, laid the foundation for this growth.

Yet the relationship has not reached its full potential.

India withdrew from the Regional Comprehensive Economic Partnership in 2019, citing concerns over trade imbalances and domestic industry protection. That decision continues to shape economic engagement with Southeast Asia. While India maintains strong bilateral ties, it remains outside the region’s largest trade architecture.

In 2026, discussions on reviewing and upgrading the India–ASEAN FTA reflect recognition that economic integration must deepen if strategic alignment is to endure.

Connectivity as Strategy

Physical and digital connectivity are central to India’s ASEAN engagement.

Projects such as the India–Myanmar–Thailand Trilateral Highway and the Kaladan Multi-Modal Transit Transport Project are designed to link India’s northeast with Southeast Asia. These corridors aim to integrate border regions into wider trade networks and reduce logistical isolation.

Connectivity, however, has faced delays and implementation hurdles. Execution will determine credibility.

Beyond roads and ports, digital infrastructure and fintech cooperation are emerging areas of partnership. As supply chains shift and digital economies expand, connectivity is no longer limited to highways. It includes data, logistics systems and financial networks.

Maritime Security and the Indo-Pacific

Security cooperation has intensified over the past decade. India conducts regular naval exercises with several ASEAN member states and supports maritime domain awareness initiatives in the region.

For ASEAN countries navigating strategic rivalry between the United States and China, India represents an additional balancing partner — large enough to matter, but not overbearing.

India’s participation in ASEAN-led forums such as the East Asia Summit and the ASEAN Regional Forum reinforces its commitment to multilateral engagement rather than bloc politics.

The shared interest is stability in the South China Sea, freedom of navigation and respect for international law. India’s maritime posture complements ASEAN’s preference for balance without formal alignment.

Strategic Competition and ASEAN Centrality

ASEAN remains central to the Indo-Pacific narrative. While major powers compete for influence through infrastructure financing, defense cooperation and trade agreements, ASEAN’s institutional cohesion acts as a stabilizing core.

India’s approach has been to respect ASEAN centrality rather than supplant it. This posture differentiates it from more assertive external actors.

At the same time, ASEAN itself is internally diverse. Member states vary in their economic dependence on China and in their security partnerships with external powers. India must navigate these differences carefully, tailoring engagement rather than applying a uniform template.

Economic Complementarities

India’s strengths in pharmaceuticals, digital services, space cooperation and capacity building align with ASEAN’s growth trajectory.

Southeast Asia’s manufacturing ecosystems and India’s large market offer mutual opportunity. Greater integration in electronics supply chains, renewable energy projects and education partnerships could anchor the relationship in tangible outcomes.

The next phase of engagement will depend on whether both sides can move beyond dialogue-heavy frameworks to investment-heavy implementation.

The Northeast as a Strategic Bridge

India’s northeastern states are geographically closest to Southeast Asia. Their development is closely tied to successful connectivity with ASEAN economies.

Infrastructure links and cross-border trade can transform the northeast from a frontier region into a bridge economy. This would reinforce both domestic development and regional integration.

The India–ASEAN relationship therefore has a domestic dimension. It is not only foreign policy; it is regional development strategy.

The Strategic Outlook

In 2026, India and ASEAN share overlapping priorities:

Economic resilience
Maritime stability
Diversified supply chains
Avoidance of rigid bloc alignment

The partnership is not defined by dramatic breakthroughs, but by steady structural convergence.

For India, ASEAN is a test of credibility in the Indo-Pacific. For ASEAN, India offers strategic balance without coercion.

The next decade will reveal whether this partnership remains incremental or evolves into a deeper economic and security compact. In a fragmented world, durable middle-power cooperation may prove more stabilizing than headline-grabbing alliances.