10 Years of India's Act East Policy

Posted 12 Sep 2024

Updated 14 Sep 2024

4 min read

Why in the News?

Experts have pointed out that the recent Indian PM’s visit to Singapore is about giving a fresh impetus to India’s engagement with South East Asia and more broadly the vast Pacific region.

India and East Asia: From Look East to Act East Policy

Genesis of Look East Policy (LEP): Post-Cold War, India lost USSR as strategic partner. Therefore LEP, initiated in the early 90s, was aimed to forge ties with US and its Southeast Asian allies, countering China's influence.
The Look East Policy and ASEAN: As a forward step in the direction of operationalising the ‘Look East’ policy, India joined ASEAN in 1992 as a sectoral dialogue partner.
- India became a Dialogue Partner in 1996 and a Summit-level Partner in 2002; forged a strategic partnership in 2012.
India’s Act East Policy (AEP): India launched India’s ‘Act East’ policy in 2014. The policy which was originally conceived as an economic initiative, has gained political, strategic and cultural dimensions.

Act East policy (AEP) in Action

An infographic image outlineing India's strategic interests and partnerships in the Indo-Pacific region. It highlights India's established partnerships with various countries, its alignment with regional policies, and its stance on key issues. The image also emphasizes India's commitment to ASEAN unity and its support for an open Indo-Pacific, while subtly indicating efforts to counter China's influence in the region.

Expansion of AEP from East Asia to the Indo-Pacific: Look East Policy solely focused on ASEAN; AEP expanded strategic scope, emphasizing on Indo-Pacific region with ASEAN as core in extended neighbourhood.
- E.g., The Indo-Pacific Oceans Initiative launched in 2019.
Strengthening of Multilateral and Regional engagement: India continues to forge closer partnership with ASEAN, BIMSTEC, Asia Cooperation Dialogue (ACD), Indian Ocean Rim Association (IORA), etc. E.g., Recent adoption of BIMSTEC Charter.
Growing institutional collaboration: With the United States (US) and its allies – Japan, Australia, and South Korea. E.g. India had joined US-led the Indo Pacific Economic Framework for Prosperity (IPEF), Supply Chain Resilience Initiative (SCRI), etc.
- Japan has provided loans for connectivity projects in Northeast India.
India’s proactive role in defence diplomacy and exports:
- In 2022, Philippines became BrahMos' first export destination of shore-based anti-ship missiles from India.
- India-Vietnam military logistics pact: Respective militaries to access each other’s bases and enhance the scale and scope of joint production respectively.
Energised Connectivity Programmes: Kaladan Multi-Modal Transit Transport Project connecting India's Mizoram state with Myanmar's Sittwe Port, India-Myanmar-Thailand Trilateral Highway, Mekong-India Economic Corridor.
India’s active Socio-cultural and developmental outreach: Evidenced by increasing people-to-people ties (2 million diaspora strength) and significant state visits like Prime Minister’s visit to Brunei and Singapore.
- Developmental outreach towards Pacific Island countries: Establishment of Forum for India-Pacific Islands Cooperation (FIPIC) and India’s Vaccine Maitri initiative, which provided vaccines to Papua New Guinea.

Key Challenges to Act East Asia Policy

An infographic image outlineing key points about India's trade and investment cooperations. It highlights that ASEAN is India's 4th largest trading partner, accounting for 10% of India's total trade. It also notes that nearly 50% of India's trade is centered in the Indo-Pacific Region, with 90% of India's trade and energy carried through the Indian Ocean. Lastly, it mentions that Japan is the 5th largest investor in the Indian economy.

Delay in Infrastructure Development: Kaladan Multi-modal Project’s delay have caused its budget to balloon six times to Rs 3,200 crore, from Rs 536 crore in 2008.
Political turmoil and civil unrest in Bangladesh: Uncertainties over the future of India-Bangladesh connectivity projects under the new political situation.
Influx of refugees into India's northeast: Led to destabilizing the borders and causing ethnic conflict in bordering states. E.g., Manipur unrest.
China's expanding footprint in the Indian Ocean region: This could impact India's access to strategic maritime trade routes through the Mongla Port in Bangladesh.
Competing with China: China's significant economic and political influence in East Asia can make it challenging for India to gain traction. E.g., In 2023, the trade between China and ASEAN reached USD 911.7 billion.
Expanding India’s trade deficit with ASEAN: From US$ 7.5 billion annually when the agreement was enacted in 2011 to approximately US$ 44 billion in 2023.

Way Forward

Trade: Re-negotiation of ASEAN Trade in Goods Agreement (ATIGA) at the earliest and address the issue of widening India’s trade deficit with ASEAN.
Infrastructure: Enhanced connectivity through completion of pending infrastructural projects
Security cooperation: Enhance maritime security cooperation in the Indian Ocean and South China Sea
Cultural diplomacy: Leverage shared cultural heritage, especially with Buddhist-majority countries.
Multilateral engagement: Strengthen ties with other regional powers like Japan, Australia and Taiwan.