10 Years of India’s Act East Policy

Why in the News?

Recent visits by Indian Prime Minister Narendra Modi to Singapore have highlighted the renewed focus on enhancing India’s engagement with Southeast Asia and the broader Pacific region. This year marks the 10th anniversary of India’s Act East Policy (AEP), launched in 2014.

Background: From Look East to Act East

• Look East Policy (LEP): Initiated in the early 1990s after India lost the USSR as a strategic partner, LEP aimed to strengthen ties with the US and Southeast Asian nations to counter China’s influence.
• ASEAN Engagement: India became a sectoral dialogue partner with ASEAN in 1992, progressing to a Summit-level Partner in 2002 and forging a strategic partnership in 2012.
• Act East Policy: Launched in 2014, AEP evolved from an economic focus to encompass political, strategic, and cultural dimensions.

Act East Policy in Action

• Expansion to Indo-Pacific:
• AEP broadened its strategic focus beyond ASEAN to include the entire Indo-Pacific region, highlighted by the Indo-Pacific Oceans Initiative launched in 2019.
• Strengthening Multilateral Engagement:
• India has solidified partnerships with organizations like ASEAN, BIMSTEC, and the Indian Ocean Rim Association (IORA), including the recent adoption of the BIMSTEC Charter.
• Institutional Collaboration:
• Increased cooperation with the US and allies such as Japan, Australia, and South Korea, including participation in the Indo-Pacific Economic Framework for Prosperity (IPEF).
• Defense Diplomacy:
• India has become a significant player in defense exports, with the Philippines being the first recipient of BrahMos missiles. Military logistics agreements with Vietnam enhance operational collaboration.
• Connectivity Projects:
• Initiatives like the Kaladan Multi-Modal Transit Transport Project and the Mekong-India Economic Corridor aim to improve regional connectivity.
• Socio-Cultural Outreach:
• Enhanced people-to-people ties, bolstered by a 2 million strong Indian diaspora and significant state visits, underscore India's commitment to cultural connections. Initiatives like the Forum for India-Pacific Islands Cooperation (FIPIC) and the Vaccine Maitri initiative highlight India’s developmental outreach.

Key Challenges to Act East Policy

• Delay in Infrastructure Development:
• Projects like the Kaladan Multi-Modal Project have faced significant delays, causing costs to escalate dramatically—from ₹536 crore in 2008 to ₹3,200 crore now.
• Political Turmoil in Bangladesh:
• Recent political instability in Bangladesh raises uncertainties for India-Bangladesh connectivity projects, potentially hampering regional cooperation.
• Influx of Refugees:
• The influx of refugees into India’s northeast has destabilized borders and led to ethnic conflicts, such as the unrest in Manipur, complicating India's domestic security landscape.
• China's Expanding Influence:
• China's growing presence in the Indian Ocean, particularly through initiatives like the Belt and Road Initiative, threatens India's strategic maritime trade routes, including access to ports like Mongla in Bangladesh.
• Competing with China:
• China's substantial economic and political clout in East Asia poses challenges for India. For instance, trade between China and ASEAN reached approximately USD 911.7 billion in 2023, overshadowing India's efforts.
• Widening Trade Deficit with ASEAN:
• India's trade deficit with ASEAN has grown from USD 7.5 billion in 2011 to around USD 44 billion in 2023, indicating a need for more balanced trade relations.

Way Forward

• Trade Negotiations:
• Prioritize renegotiation of the ASEAN Trade in Goods Agreement (ATIGA) to address the trade deficit and enhance market access for Indian goods.
• Infrastructure Completion:
• Focus on completing pending infrastructure projects to improve connectivity and trade routes, ensuring timely execution and budget management.
• Enhanced Security Cooperation:
• Strengthen maritime security collaboration in the Indian Ocean and South China Sea to safeguard strategic interests and counter potential threats.
• Cultural Diplomacy:
• Leverage shared cultural heritage, especially with Buddhist-majority nations, to enhance people-to-people ties and foster goodwill.
• Multilateral Engagement:
• Build stronger partnerships with regional powers like Japan, Australia, and Taiwan to create a more resilient and diversified diplomatic network in East Asia.