ISAS Insights

Digital connectivity is becoming an increasingly important tool of diplomacy, driven mainly by significant Chinese investments, especially in the Association of Southeast Asian Nations (ASEAN) region. In the 21^st century, digital connectivity will have as significant a geo-political impact as physical connectivity. Increased Chinese presence in the digital markets of ASEAN, therefore, has led to unease amongst the countries of this region. Given India’s rapidly expanding and maturing digital sector, coupled with the presence of indigenously developed digital products that could have relevance in the countries of ASEAN, India could act as a direct competitor to China in this region. Singapore, which is home to a number of India-facing digital companies, and is at the heart of the ASEAN economy, could act as a conduit for greater India-ASEAN digital cooperation. To ensure this, however, India must act on two fronts. Externally, India should be more ambitious and driven in exporting its technology and digital products to the rest of the world, and should improve its overseas project delivery capacities. Internally, India should ensure that its digital markets remain free and open, with clear, well-thought out policies, and should not fall into the temptation of having data localisation requirements.