According to the global financial services major, the India-ASEAN trade corridor, currently worth around USD 80 billion, has been growing fast at a compound annual growth rate of 23 per cent over the past decade.
In FY 2013-14, India's exports to the bloc stood at USD 33.13 billion.
In addition, the new Indian government has prioritised strengthening ties with the Association of South East Asian Nations.
"We expect exports to ASEAN to reach USD 280 billion in 10 years, at which point it would hold a 15 per cent share in Indian exports," Standard Chartered said in a research report.
The report added that this projection is based on the assumption that India's export/GDP ratio will continue to rise as the economy liberalises and integrates further with the global economy.
Several complementaries in India-ASEAN exports suggest room for both parties to gain from trade.
India has an advantage in pharmaceuticals, gems and jewellery, and iron and steel, while the ASEAN bloc has an advantage in natural resources and electronics.
According to the report, there are six areas with export potential -- include Petroleum products, organic chemicals, vehicles (including auto components), pharmaceuticals, gems and jewellery and apparel and clothing accessories.
These categories rank among India's top 10 export items by value.
"The first three are categories where ASEAN already accounts for a sizeable chunk of total Indian exports, and where export growth is high. The last three are areas where we feel there is potential for India to increase export growth rates," the report said.
Standard Chartered further noted that greater physical connectivity within the region via the trilateral highway and the Mekong corridor is likely to enhance trade in the India-ASEAN corridor, and should also be a priority for India's new government.
In a bid to enhance trade ties, India and ASEAN have already implemented Free Trade Agreements in goods. For services and investments, both sides have concluded negotiations.
ASEAN comprises Indonesia, Malaysia, the Philippines, Singapore, Thailand, Myanmar, Cambodia, Laos, Vietnam and Brunei.