India and South East Asia Relations

Statements 1 and 3 are correct. Vietnam's open economic policy of recent years integrating into global supply chains has made the growth success story possible. Vietnam's export-led growth strategy and global integration are among the key factors behind the country's remarkable achievements in growth and poverty. Vietnam was one among the few countries to post GDP growth rate figures in 2020 when the pandemic hit. Vietnam is projected to be the fastest-growing internet economy in Southeast Asia in the next 10 years.

Statement 2 is not correct. Vietnam is a one-party communist state, not a multi-party parliamentary democracy.


Statement 4 is correct. Thanks to an abundance of low-wage labour, Vietnam's manufacturing sector grew at a compound annual growth in the last decade. As the rest of East Asia developed and wages there rose, global manufacturers were lured by Vietnam's low labour costs and stable exchange rate. Hence,

Statement 5 is not correct. According to the Asian Development Bank Report, e-services including digital financial services are at a very nascent stage in Vietnam.

ASEAN has established Free Trade Agreements (FTAs) with six specific 'Dialogue Partners': China, Japan, South Korea, India, Australia, and New Zealand.

Statement 1 is Correct: Australia is a free-trade partner of ASEAN through the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA).

Statement 2 is Incorrect: Canada is a Dialogue Partner of ASEAN but does not have a formal Free Trade Agreement with the bloc.

Statement 3 is Correct: China is a free-trade partner of ASEAN through the ASEAN-China Free Trade Area (ACFTA).

Statement 4 is Correct: India is a free-trade partner of ASEAN through the ASEAN-India Free Trade Area (AIFTA).

Statement 5 is Correct: Japan is a free-trade partner of ASEAN through the ASEAN-Japan Comprehensive Economic Partnership (AJCEP).

Statement 6 is Incorrect: The USA has been a Dialogue Partner of ASEAN since 1977, but it does not have a Free Trade Agreement with the ASEAN bloc.

The Regional Comprehensive Economic Partnership (RCEP) is a free trade agreement that involves the Association of Southeast Asian Nations (ASEAN) and its FTA partners — Australia, China, Japan, New Zealand, and South Korea. It aims to create a comprehensive economic partnership covering trade in goods, services, investment, intellectual property, and e-commerce.

ASEAN was initially a 10-member bloc consisting of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. In 2025, Timor-Leste (East Timor) formally became the 11th member of ASEAN — marking its first expansion since Cambodia's inclusion in 1999.

In the 22nd ASEAN-India Summit (2025), both sides endorsed the ASEAN-India Plan of Action (2026–2030), focusing on areas such as maritime cooperation, digital innovation, education, and sustainable development. The year 2026 was declared the ASEAN-India Year of Maritime Cooperation.

Hence, the RCEP continues to be associated with ASEAN and its FTA partners, and the correct answer remains (b) ASEAN.

Statement 1 is Incorrect: Bangladesh is not a member of the Mekong-Ganga Cooperation (MGC) initiative. Statement 2 is Correct: Cambodia is one of the five ASEAN members that founded the MGC along with India. Statement 3 is Incorrect: China is not a participant in the MGC, although the Mekong River originates in the Tibetan Plateau. Statement 4 is Correct: Myanmar is a member country of the MGC, representing the Mekong basin region. Statement 5 is Correct: Thailand is a member country of the MGC and was part of its launch in 2000.

The Mekong-Ganga Cooperation (MGC) is an initiative by six countries: India and five ASEAN countries, namely Cambodia, Lao PDR, Myanmar, Thailand, and Vietnam. It was launched in 2000 at Vientiane, Laos, to facilitate closer contacts among people inhabiting these two major river basins. Since the question asks for those who are not participants, Bangladesh (1) and China (3) are the correct answers.

Statement 1 is incorrect: India is not a member of Asia-Pacific Economic Cooperation (APEC), a regional forum aimed at promoting economic integration and trade among Pacific Rim countries.

Statement 2 is incorrect: India is not a member of Association of Southeast Asian Nations (ASEAN), though it is an important dialogue partner and participates in ASEAN-led forums under its Act East Policy.

Statement 3 is correct: India is a member of the East Asia Summit (EAS), a strategic forum of ASEAN members and key regional partners, which India joined in 2005.