India's diplomatic landscape underwent a significant transformation with the transition from the Look East Policy to the Act East Policy. Launched in 1991, the Look East Policy aimed to develop political, economic and security cooperation with Southeast Asian nations, primarily as a counterbalance to China's influence in the region. Subsequently, in 2014, Prime Minister Narendra Modi introduced the Act East Policy, which focuses on the extended neighbourhood in the Indo-Pacific region, with ASEAN as its core. The objective of Act East Policy is to promote economic cooperation, and cultural ties and develop strategic relationships with countries in the Indo-Pacific region through continuous engagement at bilateral, regional and multilateral levels, thereby providing enhanced connectivity in its broadest sense, including political, economic, cultural and people to people relations. The Act East Policy stands on four pillars known as the 4 C's: Culture, Commerce, Connectivity, and Capacity Building. Prime Minister Modi's vision for the region is summarized in the acronym SAGAR—Security and Growth for All in the Region. Under the Act East Policy, North East is considered as a gateway to Southeast Asian Countries. In the Look East Policy, North East India was in focus but efforts were minimal when compared to the Act East Policy.
India has made significant progress in implementing the Act East Policy, establishing institutional mechanisms like annual summit-level meetings, active participation in the East Asia Summit and engagement in various regional forums. The country has become an active member of the ASEAN Regional Forum (ARF) and has contributed to forums like BIMSTEC, Mekong Ganga Cooperation, Asia Cooperation Dialogue, and the Indian Ocean Rim Association (IORA).
India emphasizes development cooperation with neighbouring countries, focusing on comprehensive socio-economic progress, trade, and connectivity. Development assistance is tailored to partner countries' needs, including Lines of Credit, Grant assistance, High Impact Community Development Projects, Technical Consultancy, Disaster Relief, Humanitarian aid and capacity-building through ITEC. India's project expertise spans diverse sectors for infrastructure and socio-economic development.
Significant Grants in Aid initiatives in neighbouring countries encompass the Akhaura-Agartala Rail Link with Bangladesh; Punatsangchhu-I (1200 MW HEP) and Punatsangchhu-II (1020 MW HEP) with Bhutan; Construction of Ministry of Defense (MoD) Building and Greater Male Connectivity Project with Maldives; Construction of 69 Bridges on TKK road, Kaladan Multi-Modal Transit Project, Upgradation of Kalewa-Yargi Road section in Myanmar; Construction of Integrated Check Post at Bhairahawa, Nepal-Bharat Maitri Polytechnic at Hetauda, National Police Academy, Panauti, India-Nepal Cross Border Rail Link: JayanagarBardiba, India-Nepal Cross Border Rail Link: JogbaniBiratnagar with Nepal; India Housing Projects Phase-III and Phase-IV with Sri Lanka.
Parallelly, key infrastructure projects under Lines of Credit in neighbouring countries are the Upgradation of Mongla Port, Power Evacuation Facilities of Rooppur Nuclear Power Plant Project, Barapukuria – Bogra – Kaliakoir Power Transmission Line with Bangladesh; Multiple road projects with Nepal; Great Maldives Connectivity Project, Development of Sports Infrastructure, Construction of Cricket Stadium Complex in Maldives, Water & Sewerage projects in 34 Islands, Gan Airport Development Project, Gulhifalhu International Port Development Project with Maldives; Yenwe and Kunchaung irrigation scheme with Myanma, Upgrading railway track from Maho-Anuradapura-Omanthai with Sri Lanka.
India-Japan relations have grown strong in the last decade. The 2+2 Ministerial Dialogue, held in Tokyo is a reflection of the commitment from both sides to keep up the momentum in the India-Japan relationship, witnessing increased investments in various sectors. The rapidly changing nature of threats in the Indo-Pacific, including the strategic consequences of China’s rise, are added imperatives to further this momentum. Similarly, India and South Korea agreed to expand trade by upgrading the existing bilateral agreement and resolving industry-specific issues to achieve $50 Bn bilateral trade by 2030. Metallurgy, automobile, electronics, prime movers, machine tools, hospitals and diagnostic centres are the top sectors which have attracted investment from South Korea.
India has also attracted substantial Foreign Direct Investment (FDI) from ASEAN countries, totalling $77 billion since 2000. This investment has flowed into sectors such as auto components, shipping, ports, highways, and food processing, setting the stage for further growth in the coming years. India's ties with ASEAN have flourished, with the region being its fourth-largest trading partner. The ASEAN-India Free Trade Area (AIFTA), established in 2010, has facilitated economic cooperation. India has initiated significant infrastructure projects such as the Kaladan Multi-modal Transit Transport Project and the India-Myanmar-Thailand Trilateral Highway Project, showcasing its commitment to connectivity and economic integration.
Being a key participant in the Quadrilateral Security Dialogue (Quad), India's involvement in the Quad underscores its commitment to promoting a free and open Indo-Pacific region and enhancing cooperation on various diplomatic, economic, and security fronts with the other Quad member nations. The Quadrilateral Security Dialogue (Quad) between India, Japan, the USA, and Australia, established in 2007 and revitalized in 2017, serves as a strategic response to China's territorial ambitions in the South China Sea. On 22 September 2023, a Quad Foreign Ministers' Meeting was held on the sidelines of the opening week of the 78th Session of the UN General Assembly. Discussion focused on deepening cooperation between Quad partners, delivering the Quad initiatives announced at the May Quad Leaders' Summit, and support for the rules-based international order.
While the Act East Policy has yielded positive outcomes, certain milestones remain unmet. There is a crucial need for competitive manufacturing to integrate India's economy with global supply chains in Southeast and East Asia. Holistic reforms, including capital sector reforms, labour reforms, easing land acquisition, and addressing infrastructure deficits are imperative for India to become a manufacturing hub and check its trade deficit.
India's cultural and civilizational linkages with Southeast and East Asian nations, dating back to ancient times and reinforced during the freedom struggle, offer a unique advantage. Soft power, emanating from cultural connections and the Indian diaspora, can strengthen people-to-people relations and enhance India's standing in the region.
To deepen economic ties, regional value chains must be created, especially in sectors like food processing and agriculture, where India holds a significant advantage. Collaboration in design, engineering, research & development, and promoting cooperation among Small and Medium Enterprises (SMEs) through technology transfers and joint ventures are crucial for faster growth.
The Northeast region, strategically positioned as a gateway to Southeast Asia, presents both opportunities and challenges. Connectivity, peaceful international borders and people-to-people connections are vital for maximizing the region's potential. Initiatives in innovation, research, and industry-academia interface can showcase the strengths of the region and attract international investments.
India's shift from the Look East Policy to the Act East Policy has brought significant diplomatic transformations. The pillars of Culture, Commerce, Connectivity, and Capacity Building have provided a comprehensive framework for engagement. Looking forward, deeper economic ties with ASEAN hinge on creating regional value chains and promoting collaboration in research and development. The North East's strategic importance demands efforts in connectivity and international partnerships. Collaboration between India and ASEAN is essential for shared prosperity and security in the dynamic Indo-Pacific region.
(The authors are Socioeconomic Research Specialist and Policy Research Expert. All views and opinions expressed in the article are the author’s own)