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Act East PolicyEdit

Act East Policy is India’s strategic framework for deepening engagement with East and Southeast Asia, emphasizing economic integration, connectivity, energy security, and security cooperation. Building on the earlier Look East Policy, Act East broadens the geographic and practical scope of engagement to include not only economic diplomacy but also regional institutions, maritime security, and supply-chain resilience. The policy seeks to align India’s growth with the dynamism of its eastern neighbors while advancing a stable, rules-based order in the Indo-Pacific. In practice, it combines trade, investment, infrastructure, and people-to-people ties with a security dimension that recognizes the maritime commons as a shared asset and a vital component of national interest.

From the outset, Act East Policy was presented as a pragmatic shift to reorient India’s diplomatic and economic outreach toward East and Southeast Asia. It complements other axis of Indian policy, including the neighborhood-first approach and broader strategic thinking about the Indo-Pacific. The policy involves a wide range of instruments—bilateral and multilateral agreements, connectivity initiatives, and confidence-building measures—designed to reduce distances in commerce, culture, and security. In this sense, Act East Policy is not a single grand project but a framework for sustained engagement with a set of economies that together shape regional growth and trade routes. Key interlocutors include the ASEAN bloc and major economies such as Japan and South Korea, alongside partners in Southeast Asia and the broader Indo-Pacific ecosystem that includes Australia and Singapore.

Background

The predecessor to Act East Policy was the Look East Policy, introduced in the early 1990s as India pursued economic liberalization and a closer alignment with East and Southeast Asia after years of policy divergence. Over time, the Look East framework matured into a more proactive and security-conscious posture, culminating in the articulation of Act East under the Modi administration. The shift reflected a recognition that the Indian economy’s expansion, supply chains, and strategic interests are increasingly intertwined with East and Southeast Asia. It also reflected a mounting awareness that regional stability and open economic rules in the Indo-Pacific would benefit India’s growth trajectory. The policy is pursued through several platforms and forums, including ASEAN, East Asia Summit, and BIMSTEC.

Core objectives and instruments

  • Economic integration and trade

    • The policy prioritizes expanding trade and investment links with East and Southeast Asia, leveraging existing frameworks such as the ASEAN-India Free Trade Area. While trade agreements open markets, the broader aim is to create diversified and resilient supply chains that reduce overreliance on any single market. India has also engaged in regional talks related to broader economic integration and has sought to align its industrial policies with regional demand.

  • Connectivity and infrastructure

    • A central pillar is physical and digital connectivity. Projects such as the Kaladan Multi-Modal Transit Project and the India–Myanmar–Thailand Trilateral Highway (IMTTH) are intended to improve inland routes and port access, linking India’s northeastern states with Southeast Asia. The aim is to lower transit costs, shorten delivery times, and integrate regional logistics networks. In parallel, digital connectivity and cross-border energy networks are pursued to support manufacturing and trade.

  • Energy security and resource diversification

    • East and Southeast Asia are important for energy supply and diversification of sources. The policy seeks to expand cooperation in oil and gas, as well as electricity and renewable energy trade, to help stabilize India’s energy mix while contributing to regional energy markets.

  • People-to-people ties and cooperation

    • Beyond governments and corporations, Act East emphasizes people-to-people exchanges, education, tourism, and cultural links. These ties are viewed as essential for long-term trust and cooperation, shaping business and diplomatic relationships in ways that complement formal agreements.

  • Security and regional order

    • The maritime domain is central to the policy’s security dimension. Ensuring freedom of navigation, secure sea lines of communication, and collaboration on maritime safety are viewed as prerequisites for stable growth. Engagement with regional security architectures, joint exercises, and capacity-building programs are part of this dimension, with an emphasis on rules-based order and deterrence of coercive behavior.

  • Regional institutions and multilateral engagement

    • The policy actively leverages regional groups such as BIMSTEC, ASEAN, and forums like the East Asia Summit to pursue collective interests, resolve disputes through dialogue, and align standards and norms that facilitate trade and security cooperation.

Implementation and regional effects

  • Growth of trade and investment

    • Over time, Act East has contributed to a measurable intensification of economic ties with East and Southeast Asia. Indian firms have pursued manufacturing, technology transfer, and services partnerships in destinations across the region, while eastern partners have sought access to India’s large consumer market and growing middle class. The policy’s success depends on reducing tariff and non-tariff barriers and improving the efficiency of cross-border logistics.

  • Infrastructure and connectivity progress

    • Infrastructure diplomacy under Act East has produced a steady stream of investments and project negotiations in roads, ports, rail, and digital networks. While some projects reach completion and others advance in stages, the overall trajectory aims to shorten regional travel times and enable smoother cross-border commerce. The success of these efforts often hinges on local governance, financing, and coordinated cross-border planning.

  • Security and maritime cooperation

    • The Indo-Pacific security dimension of Act East seeks to deter coercive actions in shared sea lanes and to develop interoperable capabilities among partners. Joint exercises, intelligence sharing, and coordinated responses to regional challenges—such as piracy or disruptive maritime behavior—are framed as contributing to regional stability that benefits all economies involved.

  • Regional institutions and governance

    • By actively engaging with BIMSTEC and ASEAN mechanisms, India aims to harmonize standards and facilitate investment, while also reinforcing a regional order that favors open markets and predictable rules. The policy’s effectiveness here depends on sustained diplomatic effort, credible commitments, and the ability to translate multilateral commitments into bilateral advantages.

Controversies and debates

  • Strategic purpose and regional balance

    • Proponents view Act East as a pragmatic, interests-based approach to diversify trade, secure supply chains, and reinforce a stable regional order. Critics, however, sometimes frame it as a strategic counterweight to a rising China or as a bailout for stalled domestic reforms by seeking growth through foreign markets. Advocates argue that engagement with East and Southeast Asia reduces strategic risk by elevating interdependence and shared interests, while critics may contend that balance-of-power calculus could tempt overreach or complicate ties with other major partners.

  • Trade policy and domestic impacts

    • The push for deeper regional integration runs alongside India’s broader economic reform program. Some critics contend that tariff and non-tariff barriers, inconsistent regulatory environments, or inadequate domestic capacity can blunt the immediate benefits of Eastward engagement. Supporters counter that the policy is designed to complement Make in India and national manufacturing goals, leveraging regional demand to grow domestic production capabilities and employment.

  • Sovereignty, standards, and governance

    • Engagement with regional partners raises questions about standards, environmental safeguards, and labor norms. Critics may fault certain projects for insufficient local consultation or for potential environmental impacts. Proponents emphasize that cooperation with manufacturing and logistics partners comes with shared governance, transparent procurement, and adherence to international norms, arguing that economic development will improve living standards.

  • The RCEP and regional trade architecture

    • The Regional Comprehensive Economic Partnership (RCEP) has been a focal point in debates about India’s role in regional trade architecture. India’s cautious stance on multilateral pacts involving competitors or asymmetrical terms is often cited by critics of expansive regional agreements, while supporters argue that selective participation and bilateral deals can better preserve national interests. This tension illustrates the broader challenge of balancing openness with safeguarding domestic industry.

  • Perception of “westernization” vs. local priorities

    • Some discussions around Act East touch on concerns about cultural and political sovereignty, especially in regions where economic ties coincide with sensitive political dynamics. A practical, market-driven view holds that economic engagement should be guided by reciprocity and mutual benefits, without allowing external pressures to redefine domestic policy choices.

Notable frameworks and related concepts

  • BIMSTEC and regional cooperation

    • BIMSTEC serves as a bridge between South Asia and Southeast Asia, combining economic collaboration with security and development initiatives. The framework reflects a pragmatic approach to regional connectivity that complements but does not replace broader ASEAN-oriented engagement. See BIMSTEC for more on its structure and projects.

  • Look East Policy

    • The antecedent policy provides historical context for the shift to Act East, illustrating a long-standing priority of integrating India into regional markets and security architectures that surround the Indian Ocean and the Pacific. See Look East Policy for a deeper look at its origins and evolution.

  • ASEAN and Indo-Pacific architecture

    • ASEAN is central to India’s outward-facing strategy, with multiple channels of dialogue, trade, and security cooperation. The Indo-Pacific concept frames the geographic and strategic space in which Act East operates, emphasizing freedom of navigation, open markets, and cooperative security arrangements. See ASEAN and Indo-Pacific for related discussions.

  • Energy and infrastructure links

  • Trade and investment architectures

    • The policy interacts with regional trade arrangements and negotiations, including ASEAN-related agreements and broader regional forums. See India–ASEAN relations and RCEP for debates about regional trade architecture and national participation.

See also