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PM Narendra Modi seeks deeper and wider engagement with South-east Asia.


Date: 10-11-2014
Subject: PM Narendra Modi seeks deeper and wider engagement with South-east Asia
'Act East and not just 'Look East' is Prime Minister Narendra Modi's mantra as he seeks to translate declarations and promises into action to elevate India's partnership with South-east and East Asia to the next level. With geographical proximity, cultural linkages and post-colonial ambitions, India is considered a benign power by most South-east Asian countries. The appeal to India to expand its footprint in the region grew stronger with China's bolstered ambitions of late, especially with regard to claims and actions in the South China Sea region. Beijing has not only challenged the freedom of navigation in the region but it has also opposed oil exploration by India and others in Vietnam's territorial waters in what it claims as Chinese territory.

While the UPA government pursued a consistent 'Look East' policy, it dithered and gave mixed signals - the withdrawal from one of the oil blocks in Vietnam being a case in point. In contrast, Sushma Swaraj has visited the region three times in the last six months since becoming foreign minister - Myanmar, followed by Singapore and then Vietnam. President Pranab Mukherjee visited Vietnam when the long-pending MoU for extending the line of credit of $100 million to Hanoi for defence purchases was signed. And Vietnam's PM Nguyen Tan Dung became the first leader from Southeast Asia whom India hosted little over a month after Mukherjee's visit, signalling that Delhi intends to walk the talk in expanding the strategic partnership.

Notwithstanding the Chinese pressure, Vietnam and India signed seven agreements, which included two pacts in oil exploration. Modi has made it clear that India remains committed to the modernisation of Vietnam's defence and security forces. Vietnam, in turn, offered India rights for exploration in two additional oil and gas blocks in the South China Sea region over and above three blocks where ONGC is present. New Delhi and Hanoi are also keen to expand trade and investment. As many as 50 CEOs accompanied PM Dung during his India trip. Textile and garments, chemicals, agriculture and fisheries are areas that have been identified for Indian investments. Vietnamese investors are keen to grasp the opportunity to invest in Modi's '100 Smart City' projects. Power projects could be another lucrative area for Indian energy majors besides joint ventures in ports with both countries having long coastlines.

Besides Vietnam, Singapore is another key pillar of India's Asean policy. The city-state sent its foreign and defence ministers to Delhi days after the Modi government took charge. Defence is one area where Singapore is keen to ramp cooperation beyond joint exercises and training. The new vistas would include defence hardware purchases, joint production and greater sharing of information on security challenges.

Indonesia has quietly stepped up its economic engagement with India, particularly in the natural resources sector. Malaysia has been seeking more attention from India and the Philippines remains a neglected state for New Delhi. The newly-signed free trade agreement with the Asean, however, is also expected to increase India's trade with the region. A prerequisite for wider engagement with the Asean region remains direct connectivity and one expects that direct and regular flights will be launched between the 10 countries and India.

With stability in the South China Sea region high on the agenda at the Asean and East Asia Summits next week, all eyes will be on Modi on his commitment to step up India's presence in the region.

Source : economictimes.indiatimes.com

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