India’s Act East Policy (AEP), introduced in 2014, marks a strategic shift in India's foreign policy, aiming to enhance India’s engagement with Southeast Asia, East Asia, and the Indo-Pacific region. With a focus on improving economic ties, strengthening regional security, and enhancing cultural exchanges, the Act East Policy has notably emphasised the role of India's North-eastern Region (NER), positioning it as the gateway to Southeast Asia. This alignment is key to enhancing India’s presence in the region and leveraging its strategic position for greater regional cooperation.
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Present Status of Act East Policy
The Act East Policy has seen significant progress, particularly in infrastructure development, defence cooperation, economic integration, and cultural diplomacy.
Key achievements include:
1. Increased Connectivity: The Act East Policy has led to the development of essential connectivity projects that link India’s Northeast with Southeast Asia. Prominent initiatives such as the Kaladan Multi-Modal Transit Transport Project and the India-Myanmar-Thailand Trilateral Highway have bolstered road and sea transport routes. Furthermore, inland water transport (IWT) has been enhanced with initiatives like trial cargo shipments between India and Bangladesh, paving the way for greater trade linkages.
2. Defence and Security Cooperation: Ensuring maritime security and enhancing defence collaboration with Southeast Asian nations are strategic pillars of the Act East Policy. Joint exercises such as SIMBEX with Singapore and trilateral maritime engagements with nations like Vietnam and Indonesia underscore India’s growing security role in the region, particularly in countering the rising maritime assertiveness of China in the South China Sea.
3. Economic Growth and Trade: The policy has facilitated greater economic integration between India and ASEAN countries. India’s trade with ASEAN has grown significantly, from USD 2 billion in 1992 to USD 72 billion by 2017-18. The ongoing efforts to form Free Trade Agreements (FTAs) and engage with economic forums like the ASEAN-India Free Trade Area (AIFTA) are pivotal in expanding India’s regional economic footprint.
4. Cultural Diplomacy: Cultural engagement, focusing on people-to-people ties, remains a key pillar of India’s Act East Policy. Cultural exchanges and the Indian diaspora in Southeast Asia play a crucial role in fostering goodwill and strengthening India's relations with the region.
Despite these accomplishments, challenges remain, including trade imbalances, infrastructure gaps, and security concerns. Nevertheless, the Act East Policy continues to evolve, with greater emphasis on deepening trade and regional cooperation.
How Act East Policy aligns with Advantage Assam 2.0, an updated version of Assam's state-level investment initiative, capitalises on the state's geographical advantage as a bridge between India and Southeast Asia. The objectives of Advantage Assam 2.0 closely align with the broader goals of the Act East Policy, creating a synergy that drives economic growth, infrastructural development, and increased regional connectivity.
Here’s how:
1. Leveraging Northeast India’s Strategic Location: Assam’s position, at the intersection of India’s Act East Policy and Southeast Asia, uniquely places it at the centre of regional connectivity efforts. With the development of essential infrastructure, such as rail links, ports, and airports, Assam is becoming the focal point of regional trade and commerce. Advantage Assam 2.0 aims to enhance Assam’s connectivity with Southeast Asia, aligning with the Act East Policy’s broader goals of regional integration and development.
2. Infrastructure and Connectivity Development: Advantage Assam 2.0 focuses on infrastructure development to enhance Assam’s connectivity. This includes building and upgrading roads, railways, and inland water transport systems, all critical components of the Act East Policy. Projects like the Agartala-Akhaura rail link and Kaladan Multi-Modal Transit Project will strengthen India’s connectivity to Southeast Asia, making Assam an integral part of the ASEAN-India economic corridor.
3. Industrial Growth and Investment Opportunities: Advantage Assam 2.0 also focuses on promoting industrial growth in Assam, particularly in sectors like energy, petrochemicals, agriculture, and renewable energy. This ties directly with the objectives of the Act East Policy, which aims to foster economic growth through regional partnerships and industrial development. The enhanced connectivity resulting from both initiatives will create new opportunities for investment in Assam, positioning it as an industrial hub for Southeast Asia.
4. Promoting Trade and Investment with ASEAN: The Act East Policy’s primary goal of enhancing trade with ASEAN countries aligns with the core objectives of Advantage Assam 2.0. Assam, positioned as the gateway to Southeast Asia, stands to benefit from increased trade and investment from ASEAN countries. The ASEAN-India Free Trade Area (AIFTA) and other trade agreements will facilitate the development of economic corridors connecting Assam to ASEAN nations, boosting trade and investment.
5. Developing Human Capital: Another vital component of Advantage Assam 2.0 is the emphasis on skill development and capacity building. This complements the Act East Policy’s focus on fostering people-to-people exchanges and regional human resource collaboration. By focusing on education, vocational training, and capacity-building, Assam will be better equipped to support industrial growth and regional cooperation in the future.
What to Look Forward to in Context of Advantage Assam 2.0?
The synergy between Advantage Assam 2.0 and the Act East Policy brings substantial opportunities for Assam. Looking ahead, several developments are anticipated:
1. Enhanced Regional Connectivity: Assam’s infrastructure is set to improve significantly. The completion of rail and road links, along with port facility upgrades and inland waterways development, will integrate Assam into the broader ASEAN-India economic corridor, further enhancing regional connectivity.
2. Sectoral Investment Focus: Assam is likely to see increased investments in key sectors like petrochemicals, textiles, and renewable energy, in line with Advantage Assam 2.0. These sectors stand to benefit from enhanced trade routes and 3. infrastructure developed under the Act East Policy, helping Assam tap into ASEAN markets.
3. Boosting Trade via Inland Water Transport (IWT): Inland water transport (IWT) will be a game changer for Assam, providing cost-effective and sustainable transportation for exports. The expansion of routes like the Maia-Aricha waterway will directly contribute to the Act East Policy’s goal of improving trade connectivity in the region.
4. Cultural and Educational Exchanges: Assam will see a rise in cultural and educational exchanges under the Advantage Assam 2.0 initiative. These exchanges, alongside tourism initiatives, will strengthen people-to-people ties, enhancing cultural diplomacy and further cementing Assam’s role as a cultural hub for Southeast Asia.
5. Act East Policy and Advantage Assam 2.0: Going hand in hand, the Act East Policy and Advantage Assam 2.0 complement each other in a powerful way. While the Act East Policy provides a broad national framework for regional engagement, Advantage Assam 2.0 focuses on implementing these goals at the state level, driving infrastructure development, investment, and industrial growth within Assam.
Both policies work together to ensure that Assam plays a central role in realising India’s broader strategic and economic objectives in the Indo-Pacific region. The development of Assam’s infrastructure, its role in trade and investment, and the strengthening of cultural ties will ensure that the state emerges as a hub for regional commerce, making it a critical link between India and Southeast Asia.
In conclusion, the Act East Policy and Advantage Assam 2.0 are aligned in their vision to enhance India’s connectivity with Southeast Asia, improve regional security, and catalyse economic growth in Assam. By focusing on key sectors such as infrastructure development, trade linkages, and capacity building, these policies will not only enhance India’s influence in the Indo-Pacific region but also unlock Assam’s economic potential, positioning it as a gateway to Southeast Asia. The cooperation between the national and state-level initiatives will play a pivotal role in shaping the future of India’s engagement with Southeast Asia.
(The writer is Regional Director- NE, Indian Chamber of Commerce. All views and opinions expressed are author’s own)
