India’s recent criticism of ASEAN has stirred unease across Southeast Asia. With close economic ties to both India and ASEAN, Singapore faces a delicate balancing act.
Indian Commerce Minister labels ASEAN “China’s B team” at global forum
Singapore holds deep trade, investment and diplomatic ties with India
Analysts question whether this signals a shift in India’s regional strategy
At the India Global Forum in London, Indian Commerce Minister Piyush Goyal made headlines by criticising India’s past Free Trade Agreements (FTAs). In a particularly sharp remark, he dismissed ASEAN as “China’s B team”—a statement that has triggered diplomatic ripples across the region.
Back home, the backlash was swift. Anand Sharma, Congress leader and former commerce minister, called Goyal’s comments “irresponsible and insulting.”
“He forgets the strategic value of these ties. Indonesia’s President was India’s Republic Day chief guest just months ago,” Sharma reminded.
Singapore strengthens its relevance in India–ASEAN ties
Singapore is not merely an observer in this diplomatic episode. It is India’s largest trading partner within ASEAN and a core participant in the India–Singapore Comprehensive Economic Cooperation Agreement (CECA). It also ranks among the top three sources of foreign direct investment into India and is home to more than 10,000 Indian companies.
Goyal’s remarks risk undermining decades of carefully nurtured economic and diplomatic ties. Singapore’s trust and investments did not materialise overnight—they were built on mutual respect and shared strategic interests.
Short-sighted swipe or strategic shift?
In an era where China’s influence is expanding and Indo-Pacific cooperation is gaining momentum, dismissing ASEAN as a proxy for Chinese exports may serve short-term political narratives—but it risks long-term regional alienation.
Countries like Singapore, Vietnam and Malaysia are not just trade partners—they are strategic allies in maintaining a balanced Indo-Pacific.
ASEAN, as a bloc, is India’s fourth-largest trading partner, with annual bilateral trade exceeding $120 billion. Approximately 11% of India’s total exports are directed to ASEAN markets, while the region accounts for 18% of India’s total foreign direct investment since 2000.
These numbers reflect more than economics; they represent trust, collaboration, and shared growth.
What’s next for Singapore?
While Singapore may choose not to respond publicly, the recent developments have sparked key questions across the region. Observers are now asking whether India is gradually pivoting away from ASEAN, and whether new Free Trade AgreementS (FTAs) with the European Union or United States are now taking precedence. At the heart of the uncertainty lies a broader concern: can ASEAN still trust India’s “Act East” policy as a consistent framework for regional engagement?
Remarks spark concern over regional diplomacy
In diplomacy, words from top officials matter. Goyal’s statement sends mixed signals at a time when regional cooperation is more vital than ever.
As Anand Sharma aptly put it, “In an interconnected world, partnerships—not isolation—are the way forward.”
For Singapore, this is not just a moment to observe—it is a moment to stay sharp, stay engaged, and ensure that bridges built over decades are not burned in an instant.