Overview

The Act East Policy (AEP) represents India’s strategic shift towards enhancing its engagement with the Asia-Pacific region, particularly East and Southeast Asia. Initially conceptualized in the early 1990s under the "Look East" policy, the AEP has evolved into a more dynamic and comprehensive strategy, reflecting India’s growing economic, political, and strategic aspirations on the global stage. It underscores India’s efforts to forge stronger economic, diplomatic, and security ties with East Asia, Southeast Asia, and the Pacific. This article by Academic Block dives into the origins, objectives, and significance of the Act East Policy, as well as its impact on India's foreign relations, particularly with key regional players like Japan, South Korea, ASEAN countries, and Australia.

Origins and Evolution of the Act East Policy

From "Look East" to "Act East"

The precursor to the Act East Policy was India’s "Look East" policy, which was initiated in 1991 under the leadership of then-Prime Minister P.V. Narasimha Rao. The Look East Policy sought to improve India’s relations with Southeast Asia, focusing primarily on economic integration and trade. In the aftermath of the Cold War and India's economic liberalization, the policy was aimed at enhancing economic ties, boosting regional trade, and engaging with the rapidly growing economies of East Asia. The shift toward the Look East Policy was a direct response to India’s underperformance in the global economic order and its need to diversify its international partnerships.

However, as the geopolitical landscape of Asia evolved, India recognized the necessity of deepening its engagement beyond Southeast Asia to include East Asia and the Pacific region. The need for a more comprehensive and proactive policy was evident as India’s global aspirations grew. In 2014, under the leadership of Prime Minister Narendra Modi, India redefined its approach by officially adopting the Act East Policy. The Act East Policy was not only an economic initiative but also a broader geopolitical strategy that sought to strengthen security partnerships, expand regional trade, and foster deeper political cooperation with countries in the Asia-Pacific region.

Key Shifts in the Policy's Focus

While the Look East Policy was largely focused on economic objectives, the Act East Policy expanded the scope of India’s engagement with the region to include security, strategic, and cultural dimensions. The Act East Policy emphasizes the need for a “whole-of-government” approach that integrates diplomatic, economic, and defense efforts to achieve India’s regional and global objectives. Over the years, this policy has evolved with India’s growing role in the Indo-Pacific region, aligning its interests with global trends like the rise of China and the shifting dynamics of international trade.

Objectives of the Act East Policy

The primary goal of the Act East Policy is to promote India’s economic and strategic interests in the Asia-Pacific region. Several objectives underlie this broad vision:

1. Strengthening Economic Ties

India’s economic objectives under the Act East Policy focus on improving trade and investment with countries in East and Southeast Asia. The policy aims to tap into the vast consumer markets of these regions, build partnerships in sectors like infrastructure, technology, and manufacturing, and integrate India into regional value chains. India's participation in regional trade initiatives like the Regional Comprehensive Economic Partnership (RCEP) and the ASEAN Economic Community (AEC) is part of this broader effort. Through the Act East Policy, India seeks to enhance its exports, boost its industrial capabilities, and attract foreign investments into critical sectors such as energy, technology, and services.

2. Fostering Regional Security Cooperation

In terms of security, the Act East Policy seeks to build stronger defense and security relationships with East and Southeast Asian countries. Given the increasing concerns over maritime security, terrorism, and regional stability, India aims to play a more active role in ensuring peace and security in the Indo-Pacific region. The policy highlights India’s commitment to multilateral security frameworks like the East Asia Summit (EAS), the ASEAN Regional Forum (ARF), and the ASEAN Defense Ministers’ Meeting (ADMM-Plus). India’s engagement with these forums allows it to contribute to shaping security norms and addressing regional challenges, including maritime disputes and terrorism.

3. Promoting Connectivity and Infrastructure Development

A crucial component of the Act East Policy is the emphasis on enhancing connectivity, both physical and digital, between India and the countries of the Asia-Pacific region. Initiatives such as the India-Myanmar-Thailand Trilateral Highway, the Kaladan Multi-Modal Transit Transport Project, and the Asia-Africa Growth Corridor (AAGC) exemplify India’s efforts to create infrastructure networks that facilitate regional trade and integration. By improving connectivity, India seeks to bolster its role as a central player in the regional supply chains and to stimulate economic growth in India’s northeastern states, which are strategically located between South and Southeast Asia.

4. Cultural and People-to-People Ties

The Act East Policy also recognizes the importance of cultural and people-to-people exchanges in strengthening bilateral relations. India shares deep cultural, historical, and civilizational links with many East and Southeast Asian countries, and promoting these ties is seen as crucial for fostering long-term relationships. Cultural diplomacy, educational exchanges, and tourism are areas in which India has made significant strides. Initiatives like the “Know India Programme” for diaspora youth and the promotion of Buddhism as a unifying cultural thread with countries like Myanmar, Thailand, and Japan are key aspects of this outreach.

Key Pillars of the Act East Policy

1. India-ASEAN Relations

The Association of Southeast Asian Nations (ASEAN) is a cornerstone of India’s Act East Policy. India’s relations with ASEAN have expanded considerably in recent years, with ASEAN emerging as India’s fourth-largest trading partner. India has actively participated in the ASEAN Regional Forum (ARF) and the East Asia Summit (EAS), where it collaborates with regional partners on a range of issues, including trade, security, and disaster management. India’s “Look East” transformation into “Act East” can be seen in its proactive role in ASEAN-led initiatives and its increasing involvement in the ASEAN Defense Ministers’ Meeting (ADMM) and the ASEAN Defense Ministers’ Meeting Plus (ADMM-Plus).

2. India-Japan Relations

India’s relationship with Japan is one of the most important in the context of the Act East Policy. Both countries share a strategic vision for a free, open, and inclusive Indo-Pacific region. India and Japan have deepened their economic and defense ties, with Japan emerging as one of India’s largest sources of foreign direct investment (FDI). The collaboration between India and Japan is multifaceted, including joint infrastructure projects, technology transfers, defense cooperation, and alignment on regional security issues. The strengthening of bilateral relations between these two democracies reflects India’s intent to play a prominent role in regional and global affairs.

3. India-South Korea Relations

South Korea, with its advanced technology sector and economic prowess, plays a key role in the Act East Policy. India’s ties with South Korea have flourished in recent years, particularly in the areas of trade, investment, and technology. South Korea’s expertise in manufacturing, infrastructure development, and high-tech industries presents India with significant opportunities for growth and collaboration. Additionally, the defense and strategic cooperation between the two countries have expanded, with a focus on maritime security and counter-terrorism efforts.

4. India-Australia Relations

Australia is another crucial partner in India’s Act East Policy, especially in terms of regional security and trade. The two countries share common interests in promoting stability in the Indo-Pacific region and are key members of the Quad (Quadrilateral Security Dialogue), a security partnership with the United States and Japan. The increasing engagement between India and Australia in the areas of defense, counter-terrorism, and maritime security reflects their mutual interest in ensuring a free and open Indo-Pacific. Moreover, Australia’s growing trade ties with India, especially in the education and services sectors, have further solidified the partnership.

5. India’s Engagement with the United States

While the United States is not traditionally considered a part of East Asia, its increasing role in the Indo-Pacific region is undeniable. The Act East Policy also recognizes the importance of deepening India’s strategic partnership with the U.S. The India-U.S. relationship has evolved significantly, with the two countries collaborating on security issues, counter-terrorism, and defense technology. The U.S. is an important partner for India in its efforts to counter China’s growing influence in the region, and the two countries have expanded their cooperation through initiatives like the Quad and other multilateral forums.

The table below presents a concise summary of the key pillars of India’s Act East Policy, highlighting the central aspects of India’s relationships with various regional powers and organizations in the Indo-Pacific:

Challenges and Criticisms

While the Act East Policy has made significant strides in fostering India’s relationships with the Asia-Pacific region, it faces several challenges. One of the major hurdles is the complex geopolitical dynamics of the region, particularly the rise of China. China’s assertive behavior in the South China Sea, its Belt and Road Initiative (BRI), and its growing influence in the Indo-Pacific have led to concerns among India and its regional partners. India’s ability to navigate these tensions, particularly through partnerships like the Quad, will be crucial in ensuring the success of the Act East Policy.

Another challenge lies in the uneven pace of economic integration and infrastructure development. While initiatives like the Asia-Africa Growth Corridor (AAGC) and the India-Myanmar-Thailand Highway show promise, the implementation of such projects faces delays and logistical challenges. Additionally, India’s northeastern states, which are central to the Act East Policy, remain underdeveloped and lack the necessary infrastructure and connectivity to fully capitalize on India’s regional aspirations.

Geopolitical Tensions with China

India’s deepening engagement with countries like Japan, the U.S., and Australia, particularly through the Quad framework, has caused unease in Beijing. China views the Quad as a counterbalance to its rising power in the Indo-Pacific region. This strategic rivalry is further complicated by India’s ongoing border disputes with China, notably in areas like Aksai Chin and Arunachal Pradesh. India’s approach to the Act East Policy is, therefore, not without its geopolitical challenges, as it seeks to balance regional partnerships while managing its relationship with China.

The Future of the Act East Policy

The future of India’s Act East Policy (AEP) will be shaped by its growing strategic and economic engagements in the Indo-Pacific region. Strengthening ties with ASEAN, particularly through trade, security cooperation, and regional multilateral forums like the East Asia Summit (EAS), will remain central to India’s objectives. India will also continue to enhance its bilateral relationships with key regional partners, including Japan, South Korea, Australia, and the United States, focusing on defense, infrastructure, and technology collaborations, especially in countering China’s rising influence.

As China’s assertiveness continues to challenge regional stability, India will deepen its strategic partnerships with like-minded nations to ensure a balance of power in the Indo-Pacific. The Quad will play an increasingly pivotal role in promoting a free and open regional order, with India aiming to safeguard maritime security and counter China’s Belt and Road Initiative (BRI). Strengthening its naval presence and ensuring freedom of navigation in key sea lanes will be a priority for India’s future maritime strategy.

India will also focus on enhancing its technological influence in the region through digital infrastructure projects and collaborations in sectors like artificial intelligence and cybersecurity. By leveraging its soft power, including cultural exchanges and educational partnerships, India seeks to consolidate its role as a regional leader. Overall, the future of the Act East Policy will be characterized by India’s proactive role in shaping the Indo-Pacific’s security, economic, and technological landscapes, while addressing emerging geopolitical challenges.

Final Words

The Act East Policy is a reflection of India’s evolving role in the Asia-Pacific region and its broader ambitions on the global stage. By focusing on economic integration, security cooperation, infrastructure development, and cultural diplomacy, India has positioned itself as an important player in the Indo-Pacific region. The policy’s success will depend on how effectively India navigates its regional challenges, enhances its partnerships, and ensures that its interests are aligned with those of its partners. The Act East Policy represents a proactive, forward-looking strategy that aims to strengthen India’s influence in a rapidly changing geopolitical landscape. Through continued engagement with East Asia and the broader Indo-Pacific, India is poised to play a critical role in shaping the future of the region. We would love to hear your thoughts in the comments below to help us make this article better. Your feedback is important to us. Thank you for Reading!