India’s Act East Policy: Success and Challenges
Introduction
India launched the Act East Policy (AEP) in 2014 as an improved version of
the Look East Policy (LEP) from 1991. This policy aims to strengthen India’s
economic, strategic, and cultural ties with Southeast Asia and beyond. It
focuses on improving relations with ASEAN, Japan, South Korea, and Australia
while also countering China’s growing influence in the Indo-Pacific region.
Successes of the Act East Policy
1. Stronger Economic Ties with ASEAN
ASEAN is India’s fourth-largest trading partner, with trade exceeding $110
billion in 2022-23 (Ministry of Commerce & Industry). The ASEAN-India Free
Trade Agreement (AIFTA), signed in 2010, has helped boost trade, and
further negotiations are in progress.
2. Better Infrastructure and Connectivity
Key projects like the India-Myanmar-Thailand Trilateral Highway (IMT) and the
Kaladan Multi-Modal Transit Transport Project aim to improve connectivity
between India and Southeast Asia. The north East Economic Corridor (NEEC)
is being developed to connect India’s Northeast with ASEAN countries,
boosting trade and investment.
3. Stronger Security and Strategic Engagement
India actively participates in regional security forums such as the ASEAN
Defence Ministers’ Meeting Plus (ADMM+) and the Quad (India, US, Japan,
Australia). India has strengthened naval cooperation with countries like
Indonesia, Vietnam, and the Philippines to ensure maritime security in the
Indo-Pacific region.
4. Cultural and People-to-People Diplomacy
India shares deep historical and cultural ties with Southeast Asia, particularly
through Buddhism and ancient trade links. The Introduction of e-Visa
facilities for ASEAN countries has increased tourism and student exchanges
between India and Southeast Asia.
Challenges Facing the Act East Policy
1. Infrastructure Delays and Bureaucratic Issues
Important projects like the IMT Highway and Kaladan Project face delays due
to land acquisition problems, lack of funding, and political instability in
Myanmar (Ministry of External Affairs reports). India’s Northeast region still
lacks proper infrastructure, making it difficult to boost trade with Southeast
Asia.
2. China’s Increasing Influence
China’s Belt and Road Initiative (BRI) and heavy investments in Southeast
Asia make it a dominant player in the region. Many ASEAN countries prefer
economic ties with China due to its larger trade volume and investment
capabilities.
3. Trade Imbalance with ASEAN
India has a trade deficit of over $43 billion with ASEAN (RBI Data 2023),
meaning it imports more than it exports. ASEAN countries have not shown
much interest in renegotiating trade agreements, limiting India’s market
access.
4. Political Instability in the Region
The military coup in Myanmar (2021) has affected India’s connectivity
projects in the country. Ongoing maritime disputes in the South China Sea
create instability in the region, impacting trade and security.
Sources for Research
1. Ministry of External Affairs (India) – Reports on Act East Policy
Developments
2. RBI Data (2023) – Trade Balance with ASEAN
3. Ministry of Commerce & Industry – ASEAN-India Trade Statistics
4. Observer Research Foundation (ORF) – India’s Strategic Engagement in
the Indo-Pacific
