India’s relationship with the Association of Southeast Asian Nations (ASEAN) has evolved significantly since the early 1990s. Initiated through the ‘Look East Policy’ in 1991, India became a sectoral partner of ASEAN in 1992, a dialogue partner in 1996, and elevated to a summit-level partner in 2002. In 2012, this partnership was further upgraded to a strategic level. The ‘Act East Policy’ in 2014 reinforced India’s commitment to deeper engagement with ASEAN. By 2022, the relationship had matured into a Comprehensive Strategic Partnership, underscoring the depth of mutual cooperation.

Economic collaboration stands as a cornerstone of this partnership. ASEAN is India’s fourth-largest trading partner, accounting for approximately 11% of India’s global trade. The ASEAN-India Free Trade Area has significantly boosted bilateral trade, reaching USD 110.39 billion in 2021-2022. Singapore, in particular, is a major trade partner and was the largest source of Foreign Direct Investment into India during the last financial year, with investments valued at USD 11.77 billion.

Strategically, both India and ASEAN share a commitment to regional stability, especially in the Indo-Pacific region. This alignment is evident in their mutual emphasis on maritime security, freedom of navigation, and adherence to international law. The elevation of their ties to a Comprehensive Strategic Partnership in 2022 highlights this shared vision.

However, challenges persist. Differences over trade policies, such as concerns regarding the ASEAN-India Free Trade Agreement, have occasionally caused friction. Additionally, varying stances on regional security issues, like the South China Sea disputes, can pose challenges to a unified approach.

To strengthen this partnership amidst evolving geopolitical dynamics, both parties can focus on enhancing connectivity through infrastructure projects, deepening economic integration by addressing trade imbalances, and collaborating on emerging areas like digital technology and climate change. Regular dialogues and people-to-people exchanges will further cement this multifaceted relationship.

Flexible Exchange Rate

A flexible exchange rate, or floating exchange rate, is a system where a currency’s value is determined by market forces—supply and demand—without direct government or central bank intervention. This leads to continuous fluctuations in the currency’s value.

Factors Influencing the Indian Rupee’s Value Against the US Dollar

1. Global Economic Conditions
   • US Dollar Strength: The Indian rupee’s depreciation against the US dollar in 2024 was primarily due to the strengthening of the US dollar globally. As of July 24, 2024, the rupee had depreciated by 0.6% against the US dollar. In comparison, other major Asian currencies like the Japanese Yen and South Korean Won declined by 8.4% and 6.7%, respectively.
2. Crude Oil Prices
   • Impact on Trade Deficit: India imports a significant portion of its crude oil. Rising crude oil prices increase the import bill, widening the trade deficit and exerting pressure on the rupee. In 2024, Brent crude prices rose by more than 6%, adding to the rupee’s depreciation pressures.
3. Foreign Exchange Reserves
   • Reserve Levels: A decline in India’s foreign exchange reserves can weaken the rupee. As of January 10, 2025, reserves fell to a 10-month low of $625.87 billion, marking the sixth consecutive week of decline.
4. Interest Rate Differentials
   • Capital Flows: Differences in interest rates between India and the US influence foreign investment flows. Higher interest rates in the US can attract investors away from India, leading to rupee depreciation.
5. Political Stability and Economic Performance
   • Investor Confidence: Political stability and robust economic growth in India attract foreign investments, bolstering the rupee. Conversely, political uncertainty or economic downturns can lead to depreciation.
6. Market Speculation
   • Investor Sentiment: Speculative activities based on future expectations of the rupee’s value can lead to short-term appreciation or depreciation.

In summary, the Indian rupee’s value against the US dollar is influenced by a combination of global economic trends, commodity prices, foreign exchange reserves, interest rate differentials, political stability, and market speculation.

Current Status of Oil and Gas Pipelines in India

India’s oil and gas pipeline network forms a vital part of its energy infrastructure. The country has an extensive network of pipelines transporting crude oil, petroleum products, and natural gas across states. Major pipelines include the Jamnagar-Loni LPG pipeline and the Hazira-Vijaipur-Jagdishpur (HVJ) gas pipeline. The Pradhan Mantri Urja Ganga project aims to expand the natural gas network in eastern India, promoting industrial growth and clean energy. As of 2023, India’s gas pipeline infrastructure stands at over 20,000 kilometers, with significant projects under development to connect under-served regions.

Advantages of Pipeline Transportation

• Cost Efficiency: Pipelines are the most economical way to transport large volumes of oil and gas over long distances.
• Environmental Benefits: With minimal emissions compared to road and rail, pipelines are eco-friendly.
• Safety: Pipelines reduce risks associated with accidents or spills during transport.
• Reliability: They operate continuously and are unaffected by traffic or weather.

Disadvantages of Pipeline Transportation

• High Initial Investment: Laying pipelines requires substantial capital.
• Limited Flexibility: Once laid, pipelines cannot alter their route to meet new demands.
• Maintenance Risks: Leakage or corrosion poses environmental and safety hazards.
• Land Acquisition Issues: Acquiring land for pipelines often faces legal and social hurdles.

Despite challenges, pipeline networks are crucial for India’s energy security and economic growth

Significance of the Indian Diaspora in Enhancing India’s Global Influence

• Economic Contributions: In 2023, remittances from the Indian diaspora reached a record $125 billion, underscoring their pivotal role in India’s economy.
• Political Influence: The Indian diaspora’s growing political influence is reshaping governance in their adopted nations, with individuals holding significant positions and advocating for India’s interests.
• Cultural Ambassadors: Through festivals, cuisine, and art, the diaspora promotes Indian heritage, enhancing India’s soft power globally.

Government Strategies to Enhance Engagement

• Policy Development: Implement comprehensive diaspora engagement policies to facilitate development-centric public-private partnerships.
• Investment Facilitation: Streamline procedures and offer incentives for diaspora investments, fostering economic growth and innovation.
• Leveraging Expertise: Establish mechanisms to utilize the professional expertise of the diaspora in sectors like education, healthcare, and technology through knowledge-sharing initiatives.
• Consular Support: Provide robust support services to address the concerns of overseas Indians, fostering a sense of belonging and trust.

By implementing these measures, the government can deepen its engagement with the Indian diaspora, harnessing their potential to further India’s development and global influence.

Between 1765 and 1833, the East India Company (EIC) transitioned from a commercial enterprise to a governing body under increasing British state control.

Key Developments:

• 1765 – Diwani Rights: The EIC secured the right to collect revenue in Bengal, Bihar, and Orissa, marking its initial governance role in India.
• 1773 – Regulating Act: Parliament introduced this act to address corruption and financial issues within the EIC, establishing a system of dual control between the Company and the Crown.
• 1784 – Pitt’s India Act: This act created a Board of Control to oversee EIC operations, enhancing governmental supervision over its activities.
• 1813 – Charter Act: The EIC’s trade monopoly was reduced, allowing private traders to participate in commerce with India, reflecting a shift towards free trade policies.
• 1833 – Saint Helena Act: The EIC’s remaining trade monopolies were abolished, and it was restructured as an administrative arm of the British government, paving the way for direct Crown rule.

These legislative measures illustrate the British state’s progressive assertion of authority over the EIC, transitioning it from a commercial enterprise to a subordinate role under direct government supervision, laying the groundwork for the eventual establishment of the British Raj.