10 Years of India’s Act East Policy: A Decade of Connectivity, Trade, and Diplomacy

• The ‘Act East Policy’ since its inception has served as a diplomatic pathway to deepen economic and strategic engagement with the ASEAN bloc and other Indo-Pacific nations.
• The 10-year milestone of the Act East Policy serves as an opportunity to assess its achievements, address challenges, and chart a future roadmap.
• Through the Act East Policy, India has actively participated in ASEAN-led mechanisms such as the East Asia Summit (EAS), the ASEAN Regional Forum (ARF), and the ASEAN Defence Ministers’ Meeting-Plus (ADMM-Plus).

The year 2024 marked a decade of completion of India’s Act East Policy. Although similar in vision, it is regarded as the revamped version of the earlier Look East Policy launched in the early 1990s by the Narasimha Rao government. Since then the LEP has been successfully carried under different leaderships signifies its importance as a foreign policy and also indicates the will of the preceding leaders in strengthening India’s relations with ASEAN.

It was the success of the ‘Look East Policy’ that enthused the Indian foreign ministry officials to develop it into a more action-oriented and outcome-based policy.[1] Thereby, to further strengthen its relations with its extended eastern neighbourhood, India unveiled its Act East Policy at the 12th ASEAN-INDIA Summit held in 2014 at Nay Pyi Taw in Myanmar. While the Look East Policy specifically focused on economic and security cooperation, the approach under the ‘Act East Policy’ has been further broadened to incorporate the cultural, political, regional and strategic dimensions as well. The Former External Affairs Minister of India, Ms Sushma Swaraj during her visit to Singapore in 2014 said that “Look East is no longer adequate, now we need to Act East”.^[2]

Over the last decade, India-ASEAN dialogues have resulted in their deepened cooperation across several key domains such as infrastructure, trade, skills, manufacturing, smart cities, connectivity projects, science and technology and regional integration. According to the Plan of Action for ASEAN-India for the period 2016-2020, the three pillars identified as areas of cooperation are ‘economic’, political security’ and ‘socio-culture’. Their relations thus have not only progressed but have also entered a new paradigm following the launch of the ‘Act East Policy’. Under the policy, the 3 C’s that are ‘Culture’, ‘Connectivity’ and ‘Commerce’ hold intrinsic value. These 3 C’s are the three pillars of the India-ASEAN partnership and were proposed as a key policy suggestion by Ms Sushma Swaraj along with the suggestion of the 5Ts, that is, Tradition, Talent, Tourism, Trade and Technology.

The progress made under India’s Act East Policy and the subsequent growth of India-ASEAN relations has been briefly summarised as follows:

Trade, Investment and Economic Cooperation

Since the early 1990s, there has been a remarkable inflow of two-way trade between India and ASEAN which has only expanded since the Act East Policy. At present ASEAN has become India’s fourth largest trading partner.[3]  A total of 11.3% of India’s global trade in 2022-2023 was with the ASEAN grouping whereby India-ASEAN witnessed a bilateral trade of USD 131.5 billion in the same year.[4] This enhanced economic cooperation between the two sides will give way to the unhindered exchange of goods and services across the borders.

India and ASEAN mutually signed the Free Trade Agreement back in 2010 which includes FTAs in goods, services as well as in investments. As per the ASEAN-India Trade in Goods Agreement, markets were opened and duties were reduced.^[5] At the Commemorative India-ASEAN Summit held in 2018, the two sides expressed their will to further strengthen their economic ties. Over the years, Indian investment in ASEAN has crossed over US$40 billion and investment from the ASEAN region to India has crossed US$70 in the same period.[6] Such good and flourishing economic ties with ASEAN are one of the major objectives under the Act East Policy.

Another major positive change that has taken place economically over the last ten years is the incorporation of several key trade agreements between India and ASEAN. The ASEAN-India Economic Ministers Meetings, the ASEAN-India Business Council and several working groups overlook and supervise these economic trade activities between India and ASEAN.^[7] The ASEAN-India Business Council provides a platform for private sectors from both sides to collaborate. The analysis and recommendations of the trade agreements and policies by these private agents are the council’s key features. APIX, launched by India in 2018 at the ASEAN-India Summit is a network of fintech cooperation that links the financial institutions and companies of India and ASEAN. Another key specialised forum to solely discuss the economy and trade between India and ASEAN are ASEAN Economic Ministers Meeting. It is an annual event that takes place before the ASEAN-India Summit whereby the commerce ministers meet and overview the trade agreements between India and ASEAN. Hence the Act East Policy’s vision is to strengthen India and ASEAN’s economic engagements in a way that would yield high growth in trade, investments and services for the two.^[8] 

A key indicator of flourishing bilateral relations between any two regions is the increased number of high-level visits.

Revisiting Ancient Linkages

In the present times, the building and harnessing of cultural ties between India and Southeast Asia is an extension of their historical and civilisational linkages. For instance, India had been a maritime nation as early as the ancient ages. It was due to such an early contact and connection with the Indian civilization that most countries of Southeast Asia share similar culture, customs and traditions with India. Nowadays, policy experts and historians have been revisiting the ancient Hindu-Buddhist-Islamic linkages between India and Southeast Asia that act as a key driver in the further strengthening of their relations. A significant initiative in enhancing cultural relations with Southeast Asia was made when Nalanda University situated in Bihar was opened. It has been further supported by the East Asian Summit which emphasizes recovering lost connections that existed in Asia.

Though there have been cultural events in the past before the Act East Policy, the magnitude and essence of cultural interactions, however, have increased now. The Ministry of Culture in India has launched initiatives that cater to the cultural engagements and interactions between India and ASEAN. At present, there are several schemes under the GOI to increase cultural connectivity between the two sides such as the Global Engagement scheme by the Ministry of Culture fostering stronger India and Southeast Asia ties. India also hosts the International Buddhist Conclave which witnesses attendees on a large scale from several Buddhist monasteries and organisations from Southeast Asia. The Archaeological Survey of India (ASI) owing to its technical expertise has also been involved in the restoration as well as the conservation of the heritage and cultural sites such as in Cambodia, Laos and Myanmar.

The Indian Council on Cultural Relations (ICCR) too has been regularly hosting various cultural events and interacting with the ASEAN countries. It has conducted seminars and organised events to highlight India and Southeast Asia’s cultural linkages. For instance, Jakarta and ICCR organised several events to showcase Indian cultural footprints in Southeast Asia. In Indonesia, the Festival of India continued for the year and an international conference was organised by ICCR on historical links between India and Southeast Asia. In the year 2015, the first international conference on “ASEAN-India Cultural Links” was held in New Delhi to strengthen their social and cultural ties.^[9] In 2017, the second such international conference was hosted in Jakarta, on the theme, “ASEAN-India Cultural and Civilisational Links.” During the conference, Vongthep Arthakaivalvatee, Deputy Secretary General for the ASEAN Socio-Cultural Community, in his keynote address stressed the importance of intercultural dialogue to bridge differences and promote cultural diversity.^[10]

Over the last decade, India-ASEAN dialogues have resulted in their deepened cooperation across several key domains such as in infrastructure, trade, skills, manufacturing, smart-cities, connectivity projects, science and technology and regional integration

Enhanced Diplomatic Outreach

A key indicator of flourishing bilateral relations between any two regions is the increased number of high-level visits. This is also true when speaking of India-ASEAN relations with the high magnitude of visits from either side over the past few years. There now exist several avenues of diplomacy between India and ASEAN such as the Track 1.5 and Track 2 level arrangements like the Delhi Dialogue, ASEAN-India Network of Think Tanks (AINTT), and the diplomats training courses among others.^[11] Hence, a significant contribution of the Act East Policy has arguably been the considerable expansion of India’s diplomatic and geostrategic outreach.^[12] As also mentioned by Prof. Harsh V. Pant in an article, a key difference identified between Look East and Act East is the increased and enhanced diplomatic engagement between India and ASEAN.

Infrastructural Development and Connectivity Projects

Enhanced connectivity between the two regions has been one of the topmost priorities for both India as well as ASEAN. The vision has been to enhance connectivity that is both physical as well as digital with the former consisting of rail, road, sea and air connectivity. India had committed to a US$ 1 billion Line of Credit for ASEAN’s connectivity projects.^[13] Not only will such an improved vision of connectivity provide both India and Southeast Asia with better trade and investment opportunities but will also give a major boost to their tourism and education sectors.

Some of the successful infrastructural ventures under the Act East Policy include the Kaladan Multi-Modal Transit Transport Project (KMMTT), and the India-Myanmar-Thailand Trilateral Highway Project, among others which have been estimated to yield high mutual benefits for both sides. The KMMTT Project between India and Myanmar was announced in the year 2008. It links India’s Kolkata to Myanmar’s Sitwe and Paletwa and its primary aim is to provide and increase land and water connectivity between India and Myanmar. The construction of a sea link through the Sittwe port aims to facilitate the movement of cargo vessels through the Bay of Bengal. The project began in 2010 with an initial deadline of 2014, however, it witnessed massive delays and was finally completed in 2023. Another key project is the India-Thailand-Myanmar Trilateral Highway which started in 2002 and is one of the earliest connectivity projects between India and ASEAN. The project was visualised as the “highway of opportunity and friendship” facilitating the movement of goods, services, people, and ideas.[14] It has been proposed to also extend the highway to Cambodia, Laos and Vietnam. 

The Mekong-India Economic Corridor (MIEC) is another project that connects India with Myanmar, Cambodia, Thailand and Vietnam. The project envisions linking South and Southeast Asia by reducing the travel distance to boost investment and trade opportunities. By 2016, India was also a part of the MGC Working Group that seeks to enhance maritime cargo transportation that will directly benefit India and Southeast Asia.[15] There are also proposals to connect India’s Andaman and Nicobar to Indonesia’s Sabang as part of India-ASEAN’s maritime connectivity projects. Better connectivity with Southeast Asia will not only boost India-ASEAN ties but will also prove beneficial to India domestically by providing its Northeastern region with better economic and educational opportunities. As per a study conducted by the Economic Research Institute for ASEAN and East Asia (ERIA), the potential benefits from an increased India-ASEAN connectivity will yield cumulative gains of over 5 per cent of GDP for Cambodia, Myanmar, Thailand and Vietnam, and over 2.5 per cent of GDP for India.^[16]

In such a globalised world, connectivity does not only mean physical but also includes digital and cyberspace. In its Act East Policy, India, being a leading IT service provider, also puts equal emphasis on digital connectivity, and digital economy and aspires to cooperate with states in the field of cyberspace.^[17] In 2017, the first ASEAN-India Connectivity Summit was conducted on the theme “Powering Digital and Physical Linkages for Asia in the 21st Century”, emphasising the importance of connectivity and technology for India-ASEAN relations in the AEP.^[18]

Enhanced connectivity between the two regions has been one of the topmost priorities for both India as well as ASEAN.

Increased People-to-People connectivity

The year 2022 was celebrated as the ASEAN-India Year of Friendship on the completion of thirty years of their dialogue relations. A major linkage between the two sides is the Indian diaspora. For example, the Indian diaspora in countries like Singapore and Malaysia fosters cultural connectivity between India and ASEAN.^[19] The Pravasi Bhartiya Divas have been regularly organised in Southeast Asia along with several cultural exchange programmes. Some mechanisms to further enhance cultural and educational exchanges between the two sides are Students Exchange Programmes, Special Course for ASEAN Diplomats, Media Exchange Programmes, Young Farmers Exchange Programmes, the ASEAN-India PhD fellowship Programme whereby PhD Fellowships were launched for ASEAN students by India in 2019. Southeast Asian countries celebrating International Yoga Day highlight yet another cultural connectivity between India and ASEAN.^[20]

Strategic and Security Enhancements

India and ASEAN apart from having bilateral relations are also part of key multilateral groupings which has further added meaning to their existing relations and given them new avenues for cooperation. Such as the Indian Ocean Rim Association (IORA), Bay of Bengal Initiative for Multi-Sectoral Technical and E-commerce Cooperation (BIMSTEC), and Mekong Ganga Cooperation (MGC). India’s membership in these bilateral groupings also reflects its determination of its ‘neighbourhood first’ approach. The Act East Policy has been formulated alongside India’s increasing engagements in the Indo-Pacific where both India and ASEAN are key players.^[21] In recent years the two sides have also been part of several defence and security dialogues. For instance, the two sides conducted their first joint maritime exercise, the AIME (ASEAN-India Maritime Exercise) in 2023. This indicates the intensification of their defence diplomacy in the region.

Way Forward

India’s vision towards the ASEAN nations has been broadened since the inception of the Act East Policy and their relations have evolved from an economic alliance to a strategic partnership over the years. India now engages more actively with ASEAN and aims to play an increased role in the Indo-Pacific region. Similarly, there has been an increased alignment over the years from the ASEAN side towards India regarding a spectrum of issues such as trade, connectivity, defence, and security.

It is highly likely that soon both sides will benefit from increased cooperation in infrastructure, trade, skills, manufacturing, smart cities and urban renewal projects such as through Make in India. It has been estimated that by 2025-2030 India will have become the world’s top energy consumer and it would need to work with countries like the ASEAN to sustain its energy demands. Also in the present age when we are surrounded by things that are mostly technology-based, it is essential for ASEAN and India to also explore and cooperate in the fields of science and technology and engage more in cyberspace. At the same time, India also needs to work on improving its record of timely completion and delivery of projects especially the ones related to infrastructure and development.

References:

• _{^[1] Jha, Pankaj. “Vietnam’s Salience in India’s Act-East Policy”. Oped Column Syndication. March 23, 2019.}
• _{^[2] Chand, Manish. Act East: India’s ASEAN Journey. November 10, 2014. https://www.mea.gov.in/outoging-visit-detail.htm?24216/Act+East+Indias+ASEAN+Journey}
• _{^[3]https://www.hcisingapore.gov.in/article?id=eyJpdiI6Ijk1WEpTTnJ2NTFFTG96eXB5OWJWSlE9PSIsInZhbHVlIjoidkM2UVFwWmFOTGxcL3lRbHdNRGJWXC9RPT0iLCJtYWMiOiI4ODZlNjQ2OTQyYTQ2MGVkYmZkZGQ2YmMyYzJlYWYxNGJhYmJkMTNmNTNhMTc5OWQ4OGU3OGYxZDdmNGIyNDA2In0=0 in.} 
• _{^[4] India participates in the 20th ASEAN-India Economic Ministers’ Meeting in Semarang, Indonesia. Aug, 2023. New Delhi. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1950902}
• _{^[5]https://www.asean.org/wp-content/uploads/images/2015/October/outreach-document/Editedpercent20AIFTA.pdf}
• _{^[6] Chakravarty, Pinak Ranjan. India’s changing global priorities and the role of the Act East policy. Observer Research Foundation. April, 2018. https://www.orfonline.org/research/indias-changing-global-priorities-and-the-role-of-the-act-east-policy}
• _{^[7] Overview, “ASEAN India Dialogue Relations”. https://asean.org/wp-content/uploads/images/2015/November/asean-india/Overview%20ASEAN-India%20Dialogue%20Relations%20-%20November%202015.pdf}
• _{^{[8] Marjani, Niranjan, “30 Years of Asean-India Relations: Advances and Challenges”, Centre for East Asian Studies. February, 2023.}}
• _{^[9]  Sebastian, Sarish ; Varghese, Philip ; B.,Shalini. Study Report; India’s Neighbourhood Policy towards the Southeast Asian Region: A Study on Act East Policy. Hann Seidel Stiftung. Christ (Deemed to be University). NCR, Bangalore. 2022 https://india.hss.de/publications/indias-neighborhood-policy-towards-the-southeast-asian-region-a-study-on-act-east-policy-pub2402/}
• _{^[10] ASEAN, India to boost cultural cooperation and linkages. ASEAN. January, 2017.  https://asean.org/asean-india-to-boost-cultural-cooperation-and-linkages/}
• _{^[11] Delhi Dialogue VIII (ASEAN-India Relations: A New Paradigm. Press Release. MEA.18, Feb, 2016. https://www.mea.gov.in/press-releases.htm?dtl%2F26368%2FDelhi_Dialogue_VIII_ASEANIndia_RelationsA_New_Paradigm}
• _{^[12] Sharma, Abhishek. Basu, Pratanashree. Ten Years of India’s Act East Policy. ORF. October, 2024. https://www.orfonline.org/expert-speak/ten-years-of-india-s-act-east-policy}
• _{^[13] ASEAN-India Reaffirm Commitment to Strengthen Cooperation, HANOI, 19 March 2016. asean.org. https://asean.org/asean-india-reaffirm-commitment-to-strengthen-cooperation/}
• _{^[14] India-Myanmar-Thailand Joint Task Force Meeting on the Trilateral Highway Project. Ministry of External Affairs. September, 2012. https://www.mea.gov.in/press-releases.htm?dtl/20541/IndiaMyanmarThailand+Joint+Task+Force+Meeting+on+the+Trilateral+Highway+Project}
• _{^[15] Joint Statement on the 7th Mekong-Ganga Cooperation Ministerial Meeting, Vientiane, July 15, 2016, at https://www.mea.gov.in/bilateral-documents.htm?dtl/27138/Joint_Statement_on_the_7th_MekongGanga_Cooperation_Ministerial_Meeting_Vientian )}
• _{^[16] India: Building connectivity under the Act East Policy. De, Prabhir. 2016.}
• _{^[17] Sebastian, Sarish ; Varghese, Philip ; B.,Shalini. Study Report; India’s Neighbourhood Policy towards the Southeast Asian Region: A Study on Act East Policy. Hann Seidel Stiftung. Christ (Deemed to be University). NCR, Bangalore. 2022 https://india.hss.de/publications/indias-neighborhood-policy-towards-the-southeast-asian-region-a-study-on-act-east-policy-pub2402/}
• _{^[18] Firstpost. December, 2017. https://www.firstpost.com/india/aics-to-be-held-in-new-delhi-meet-to-commemorate-silver-jubilee-of-asean-india-dialogue-partnership-4251019.html}
• _{^[19] Sharma, Abhishek. Basu, Pratanashree. Ten Years of India’s Act East Policy. ORF. October, 2024.} https://www.orfonline.org/expert-speak/ten-years-of-india-s-act-east-policy
• _{^[20] Sharma, Abhishek. Basu, Pratanashree. Ten Years of India’s Act East Policy. ORF. October, 2024.https://www.orfonline.org/expert-speak/ten-years-of-india-s-act-east-policy}
• _{^{[21] Marjani, Niranjan, “30 Years of Asean-India Relations: Advances and Challenges”, Centre for East Asian Studies. February, 2023.}}

Faareha Usmani

Faareha is a final-year Ph.D. scholar researching India’s Act East Policy, with a keen interest in the Indo-Pacific region and India’s maritime relations with its neighbours. She has previously interned at the Indian Council of World Affairs, a think tank under the MEA, and has worked as a Subject Matter Expert and Script Writer in Social Sciences.