Prime Minister Narendra Modi visited Malaysia. He had delegation-level talks with PM Anwar Ibrahim. Both sides signed  six key agreements. It includes Audio-visual co-production, Disaster management cooperation. It also includes Combating corruption, United Nations peacekeeping and Semiconductor cooperation.

Both countries agreed to expand defence cooperation. Special focus will be  in the domain of maritime security.

Also agreed for speedy conclusion of the India-ASEAN Trade in Goods Agreement

Both countries agreed to trade in  local currency.( The Malaysian Ringgit and Indian Rupee). And use of the currency in settlement of bilateral trade and investments.

Strongly condemned terrorism in all its forms and manifestations. Including cross-border terrorism, to counter radicalisation and violent extremism

The social security agreement for the protection of Indian workers in Malaysia

STRATEGIC RELATIONS

India and Malaysia has signed Comprehensive Economic Cooperation Agreement. (CECA)(2021). Malaysia is the third largest trading partner for India from the ASEAN region. Malaysia is a key pillar of India’s Act East policy .It is  critical to India’s maritime connectivity strategies. India and Malaysia have grown from a Strategic Partnership to an Enhanced Strategic Partnership.

ASEAN-INDIA

The main focus of India’s Act East policy focuses on engagement not just with Southeast Asian countries but also those in the Pacific and on enhancing connectivity between India and South East Asia, through linkages between India’s northeastern region and countries like Thailand, Myanmar, and Vietnam.

India and ASEAN share deep historical, geographical, and cultural ties. Therefore, their Strategic Partnership rests on strong civilizational links. From the outset, ASEAN has remained central to India’s Act East Policy. ASEAN includes Indonesia, Singapore, the Philippines, Malaysia, Brunei, Thailand, Cambodia, Lao PDR, Myanmar, and Vietnam.

In the early 1990s, India began economic liberalisation. As a result, it launched the Look East Policy. Over time, this policy evolved. Today, it has matured into the action-oriented Act East Policy. Meanwhile, India actively participates in key regional forums. These include ASEM, EAS, ARF, ADMM+, and the Expanded ASEAN Maritime Forum.

India became an ASEAN Sectoral Partner in 1992. Subsequently, it gained Dialogue Partner status in 1996. Later, in 2002, the partnership reached the Summit level. Finally, in 2012, both sides upgraded the relationship to a Strategic Partnership. To further strengthen engagement, India established a separate Mission to ASEAN and the East Asia Summit in Jakarta in 2015. It also appointed a dedicated Ambassador to ASEAN-centric processes.

In 2017, India and ASEAN jointly celebrated 25 years of Dialogue Relations. This milestone highlighted the steady growth of their engagement.

Trade and investment ties have expanded consistently. As a result, ASEAN has emerged as India’s fourth-largest trading partner. The ASEAN-India Trade in Goods Agreement came into force on 1 January 2010. Subsequently, the Trade in Services and Investment Agreements became operational on 1 July 2015.

Connectivity remains a key pillar of cooperation. Accordingly, India launched the India–Myanmar–Thailand Trilateral Highway Project. This project also plans extensions to Laos and Cambodia. Its objective is to link the ASEAN Highway Network with eastern India. At the same time, India has begun building a road connecting Mizoram with Sittwe Port in Myanmar under the Kaladan Multimodal Transit Transport Project. Additionally, proposals for a railway link between New Delhi and Hanoi are under consideration.

India is also expanding maritime cooperation with ASEAN countries. In particular, it conducts bilateral and multilateral naval exercises. For instance, India has carried out such exercises with Indonesia and Vietnam. These efforts strengthen security in the Indo-Pacific region.

Importance of ASEAN for India

India and ASEAN both support a rules-based security architecture. Their shared goal is peaceful and inclusive regional development. Consequently, ASEAN occupies a central place in India’s Indo-Pacific vision of Security and Growth for All in the Region.

The Act East Policy places strong emphasis on Southeast Asia. However, it also extends engagement to Pacific countries. Moreover, it focuses on improving connectivity. In particular, India seeks closer links between its northeastern region and countries such as Thailand, Myanmar, and Vietnam.

Another crucial element of cooperation is the India-ASEAN Plan of Action (2021–2025). This framework aims to enhance maritime trade and security cooperation. It also strengthens collaboration on counter-terrorism.

India and ASEAN share a Free Trade Agreement. As a result, India has become one of ASEAN’s leading trade and investment partners. Over the past decade, bilateral trade has grown rapidly. It crossed US$79 billion during 2020–21.

Constraints

Despite progress, several challenges remain. First, delays in infrastructure projects affect connectivity. Consequently, they limit trade potential and weaken momentum. For example, the India–Myanmar–Thailand Highway has faced repeated delays. Similarly, although much of the Kaladan project is complete, the Paletwa–Zorinpui road remains behind schedule.

Second, trade imbalance continues to be a concern. India’s trade deficit with ASEAN remains high and favours ASEAN countries. Moreover, India’s withdrawal from the Regional Comprehensive Economic Partnership has created divergence. This issue emerged after eight years of negotiations and remains a sensitive point in India-ASEAN relations.