The Situation Room: What India’s Act East shift means for India's economy

David Lian, regional president for Asia Pacific at Zeno Group, grounded the India–ASEAN relationship in something older than trade policy. "India and ASEAN share common origins, key links and ancient historical associations," he said. "Culturally, we hold similar values as well."

That inheritance now meets both challenges and opportunities. ASEAN countries find themselves caught between the United States and China, Lian said, struggling to balance both relationships without alienating either side. He pointed to the Singapore Business Federation, which is reconfiguring itself around a multipolar world while holding that balance — work that takes on urgency as Singapore prepares to assume the ASEAN chair in 2027.

Economic ties run beyond policy, he argued. Workers migrating from the Indian subcontinent into Singapore, Malaysia and Indonesia bind the two regions together as firmly as any agreement does.

Lian reserved his sharpest point for how companies read these markets. Neither region is a monolith: India contains 12 distinct cultures, he said, and ASEAN spans 11 countries. Businesses that treat either as a single block will misread both. Cultural exchange, he argued, is what lets companies adapt to local nuance when they enter a new market.

Akanksha Swarup, editor for foreign affairs, Times Now, said: "In a highly volatile, polarised world, I think trust and predictability are the biggest premium, which is why for India, the compass is pointing towards the East."

Swarup also shared that apart from the cooperation in digital infrastructure, maritime cooperation is another key element.  ASEAN nations represent roughly 10% of the world's total coastline. This massive maritime footprint supports highly dense coastal populations, expansive marine biodiversity, and critical global trade routes like the South China Sea and the Strait of Malacca.

As the Hormuz Strait standoff showed, dependence on limited trade routes can have devastating consequences.

Swarup also shared that along with ASEAN, India will also host the 18th BRICS Leaders' Summit in New Delhi on September 12–13, 2026, after officially assuming the rotating BRICS chairmanship on January 1, 2026. 

Why ASEAN Matters

India adopted a new five-year Plan of Action for 2026–2030, significantly expanding the digital economy, artificial intelligence, clean energy and food security into standalone strategic priorities — a marked shift from the outgoing 2021–2025 roadmap. Adopted 10 July 2025 in Kuala Lumpur, the plan operationalises the ASEAN-India Comprehensive Strategic Partnership and is explicitly linked to ASEAN's new 20-year vision, ASEAN 2045: Our Shared Future.

Bhuvan Bagga, South Asia Correspondent, Agence France Presse (AFP), identified the "Chinese lens" as a critical factor in how ASEAN views India and other regional countries. Bhuvan Bagga emphasised the need to examine India's historical bilateral engagements with nations such as Vietnam, the Philippines, and Indonesia, and to explore changes required within the policy frameworks of both India and ASEAN to foster more aggressive and fruitful economic engagement.

 Furthermore, Bagga highlighted the complications within the ASEAN bloc, citing internal divisions regarding how to engage with Laos and Myanmar, and noted that discussions between New Delhi and Tokyo are occurring due to apprehensions about a potential American withdrawal from the region

It is also noteworthy that India's 9 billion dollar mega port on Great Nicobar Island is, as Bagga puts it, "Designed to rival China's investments around the Indian Ocean, and is a site offering a naval presence far closer to Southeast Asia than India's mainland."

For context, originally focused on economic integration with Southeast Asia, India's Act East Policy has upgraded to include heavy strategic and institutional defence cooperation. To neutralise the "String of Pearls," India deploys a counter-encirclement approach often called the "Necklace of Diamonds.

Willie Tan, head of business solutions, Swisslog Healthcare, Asia Pacific, focused on India's potential as a healthcare market, as it has one of the world's largest hospital networks and a rapidly expanding healthcare infrastructure.

Swisslog Healthcare is a global leader in pharmacy automation and delivery transport. Earlier this year, the company announced a strategic expansion of its India operations to address the growing demand for advanced pharmacy management solutions across the region. Grand View Research estimates the "India Medical Automation Market" was $1.52 billion in 2023, growing to $3.09 billion by 2030 at a 10.6% CAGR.

Tan also pointed to India's "Heal in India" push — AYUSH visas, a revamped Medical Value Travel portal, liberalised medical visas, and five planned 'Regional Medical Hubs' under the FY26-27 budget —to promote wellness and medical tourism.

India's overall medical tourism market is projected to nearly double from about $8.7 billion (2025) to $16.2 billion by 2030. India's price advantage over other ASEAN nations means the country is aiming at converting its existing cost advantage into trust and access infrastructure — visa reform, insurer empanelment, and diaspora referral pipelines.

The session was moderated by Megha Choubey, AVP, Zeno Group India