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Reflecting on a Decade of Progress: India’s Act East Policy
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- Written by: Preeti Sharma
- Category: Foreign Policy
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Reflecting on a Decade of Progress: India’s Act East Policy
This year India is celebrating the 10th Anniversary of its Act East Policy, so its high time to review the achievements and challenges of this diplomatic step of the foreign policy experts of India. India knocked at the eastern world with its new 'Act East Policy' that represented a dynamic diplomatic strategy aimed at enhancing economic, strategic, and cultural relationships with the vast Indo-Pacific region across multiple dimensions. Unveiled in November 2014 during the 12th ASEAN-India Summit held in Myanmar, this policy builds upon the foundation laid by the 'Look East Policy' of 1992. While the original Look East Policy primarily concentrated on fostering economic cooperation with ASEAN, the Act East Policy broadens this scope significantly.
The Act East Policy aspires to engage India's extended neighbourhood within the Indo-Pacific, incorporating not only economic collaboration but also a comprehensive framework for security cooperation and broadened engagement with countries in Southeast Asia and East Asia. Japan, South Korea, and members of the Association of Southeast Asian Nations (ASEAN) fall under the core focus of this policy. This strategic pivot underscores India's commitment to forging deeper connections and partnerships with nations across this region, reflecting a more integrated and multi-faceted approach to regional diplomacy. By advancing initiatives that encompass trade, investment, Infrastructure Development, cultural exchange through People-to-People connect, diaspora engagement, and security partnerships, India seeks to solidify its presence and influence in the Indo-Pacific region, thereby contributing to regional stability and prosperity.
Under this policy, India took significant initiatives i.e. economic ventures involving regional forums like the East Asia Summit (EAS) and Asia-Europe Meeting (ASEM), security endeavors including joint military drills and counter-terrorism collaboration and cultural initiatives promoting festivals, educational exchanges, and fostering mutual comprehension. The Act East Policy strives to bolster connectivity between Northeastern states, including Arunachal Pradesh, and neighboring countries, thereby strengthening foreign relations. India’s Act East Policy is anchored in 4 key pillars – Culture, Commerce, Connectivity, and Capacity Building. Lets review the performance of AEP based on these criteria.
Under the Neighbourhood First Policy, development collaboration is a cornerstone of our interactions with adjacent nations, concentrating on strengthening bilateral ties across all dimensions of socio-economic progress, including trade and connectivity. India’s developmental aid is customized to the requirements of partner nations and strives to fulfill as many of their requests as technically and financially viable. The main channels of India's developmental assistance include Lines of Credit (LOC), grant aid, High Impact Community Development Projects (HICDP), technical consultancy, disaster relief, humanitarian aid, and capacity-building initiatives under the Indian Technical and Economic Cooperation Programme (ITEC). Indian proficiency is exhibited in project planning and execution across a broad spectrum of sectors, covering both infrastructure and socio-economic development.
India and Japan have formalized a 2+2 Ministerial Dialogue. PM Modi stressed expanding this dialogue to include the US-Japan-India trilateral at the ministerial level. New Delhi's involvement in QUAD meetings with the US, Japan, and Australia, particularly post-2017, highlights India's interest in Indo-Pacific strategic discussions. India and South Korea have also established multiple bilateral mechanisms for strategic cooperation. India's economic ties with ASEAN have significantly grown, culminating in over $131 billion in trade in 2022-23 and extensive bilateral investments.ASEAN being one of the major trade partners of India with a share of 11% in India's global trade. The bilateral trade stood at USD 122.67 billion during 2023-24. On diving deep inside, AEP took significant steps connecting Northeast India to East Asian nations and former Foreign Minister of India Mrs. Sushma Swaraj in 2015, underscored North Eastern Region as ‘land bridge to ASEAN’. Northeast India, comprising eight states, shares a 5,182-kilometer international border with China, Myanmar, Bangladesh, Nepal, and Bhutan. Renowned for its ethnic and cultural diversity, the region's strategic location facilitates integration with South, East, and Southeast Asia. The Act East Policy aims to enhance this integration, fostering economic development and regional cooperation. General VK Singh in 2015 stated that the Act East Policy prioritizes Northeast India, including Arunachal Pradesh, by enhancing border trade, connectivity, cultural exchanges, and people-to-people contacts with the ASEAN region. Bilateral and regional initiatives focus on developing physical infrastructure and fostering economic and cultural ties to strengthen this strategic interface. The Act East Policy (AEP) serves as a bridge between North Eastern India, including Arunachal Pradesh, and the ASEAN region. Various projects have been undertaken to enhance connectivity of the North East States through Myanmar and Bangladesh, including the Kaladan Multimodal Transit Transport Project and the Protocol on Inland Water Transit and Trade (PIWT&T). Additionally, the use of Chattogram and Mongla Ports in Bangladesh facilitates the movement of goods to and from India. The government has also sanctioned projects to develop Inland Water Transport (IWT) infrastructure on National Waterways NW-2 (Dhubri-Sadiya stretch of river Brahmaputra) at a cost of Rs. 461 Crore. (ii) NW-16 (river Barak) & Indo-Bangladesh Protocol (IBP) route at a cost of Rs. 145 Crore. in the North-Eastern Region (NER) from 2020-21 to 2024-25. Economic Backwardness of Northeast India, demands precise diplomatic actions under AEP by connecting links with ASEAN and East Asian countries. The Act East Policy seeks economic prosperity for Northeast India through export expansion to East and Southeast Asia, leveraging cultural and geographic proximity. Despite its resource wealth, the region remains underdeveloped, reliant on central aid. Although the proposed projects aim to spur export-led growth, but it is imperative to address insurgency, market infrastructure, connectivity, technology, and governance issues for longterm growth century of India and South East.
(The author is an Assistant Professor in School of International Studies as an expert of Himalayan Geopolitics & South Asia)