Act East Policy: Objectives, Significance, Challenges and Indo-Pacific Strategy
Source: Indian Express
GS II: India and its Neighbourhood- Relations.
Overview
- News in Brief
- Act East Policy
- Significance of the Act East Policy
- Challenges
- Way Forward & Conclusion
Why in the News?
Prime Minister Narendra Modi’s recent visits to Indonesia, Australia, and New Zealand have reaffirmed India’s commitment to the Act East Policy and its growing engagement with the Indo-Pacific region.
News in Brief
- The visits reinforced the Act East Policy, with emphasis on trade, connectivity, maritime security, and strategic cooperation with Indo-Pacific partners.
- They come amid an increasingly uncertain Indo-Pacific, marked by growing strategic competition, China’s assertiveness, and the need for a free, open, inclusive, and rules-based regional order.
- The Act East Policy has emerged as a key pillar of India’s foreign policy, strengthening its role as a responsible regional power.
Act East Policy
Evolution: Look East Policy (1991) to Act East Policy (2014)
- Look East Policy (1991)– Launched by Prime Minister P.V. Narasimha Rao.
- To strengthen economic and trade relations with Southeast Asia as part of India’s economic liberalization.
- Act East Policy (2014)– Announced by Prime Minister Narendra Modi at the 12th ASEAN-India Summit.
- It expanded the policy beyond economic engagement to include strategic, security, connectivity, cultural, and maritime cooperation across the Indo-Pacific.
Objectives
- Enhance trade, investment, and joint ventures with ASEAN and broader East Asian economies to integrate India into global supply chains.
- Develop critical physical infrastructure—such as the India-Myanmar-Thailand Trilateral Highway and the Kaladan Multimodal Transit Transport Project—to physically link India’s Northeast with Southeast Asia.
- Deepen defense partnerships, ensure maritime security, and promote a free, open, and inclusive Indo-Pacific region.
- Build soft power through shared heritage, tourism, and educational exchanges to create sustained, long-term regional diplomacy.
Difference between Look East Policy and Act East Policy
| Look East Policy (1991) | Act East Policy (2014) |
|---|---|
| Focused mainly on economic engagement. | Comprehensive approach covering economic, strategic, security, and cultural cooperation. |
| Limited largely to Southeast Asia. | Covers the broader Indo-Pacific region. |
| Emphasized trade and investment. | Emphasizes trade, connectivity, defence, maritime security, and regional stability. |
| Relatively passive engagement. | Proactive and action-oriented diplomacy through bilateral and multilateral partnerships. |
Significance of the Act East Policy
- The policy has enabled India to play a more active role in the Indo-Pacific by deepening engagement with ASEAN and other regional partners, thereby enhancing its diplomatic influence.
- It has opened new avenues for trade, investment, and resilient supply chains, supporting India’s economic growth and reducing dependence on a few markets.
- The policy has strengthened defence partnerships, joint military exercises, and maritime cooperation, helping India address evolving security challenges in the region.
- By improving connectivity with Southeast Asia, the policy aims to transform the Northeast into a hub for trade, investment, tourism, and cross-border cooperation.
- The Act East Policy reinforces India’s commitment to a free, open, inclusive, and rules-based Indo-Pacific, contributing to regional peace and stability.
- Shared civilizational links, educational exchanges, tourism, and diaspora engagement have strengthened mutual trust and long-term partnerships with East Asian countries.
Key Regional and Multilateral Groupings
- ASEAN – Central platform for India’s engagement with Southeast Asia.
- East Asia Summit (EAS) – Forum for strategic and political dialogue in the Indo-Pacific.
- Quad – India, Australia, Japan, and the US cooperate on maritime security, technology, and resilient supply chains.
- BIMSTEC– It is the critical bridge connecting India’s “Neighborhood First” and “Act East” policies, making it a primary delivery mechanism for its broader Indo-Pacific vision.
- Indian Ocean Rim Association (IORA) – Strengthens economic and maritime cooperation in the Indian Ocean Region.
- ADMM-Plus – ASEAN-led defence forum that enhances practical security cooperation among member states and dialogue partners.
Key Bilateral Partnerships
- Indonesia – Strengthens maritime security, defence cooperation, and India’s engagement in the Indian Ocean and Indo-Pacific.
- Australia – Deepens strategic, defence, critical minerals, and Indo-Pacific cooperation under the Comprehensive Strategic Partnership.
- New Zealand – Expands trade, education, agriculture, and Indo-Pacific cooperation through the Strategic Partnership and Roadmap 2030.
- Japan – A key partner in infrastructure development, connectivity, defence cooperation, and investment, particularly in Northeast India.
- South Korea – Enhances trade, technology, manufacturing, defence, and resilient supply chains under the Special Strategic Partnership.
Challenges
- The prolonged political turmoil in Myanmar has severely disrupted flagship connectivity projects like the India-Myanmar-Thailand Trilateral Highway and the Kaladan project.
- India’s trade deficit with ASEAN continues to widen which has been further exacerbated by India’s exit from the Regional Comprehensive Economic Partnership (RCEP), limiting India’s regional market leverage.
- Physical connectivity projects remains slow due to security challenges, particularly insurgency and the abolition of the Free Movement Regime along the India–Myanmar border.
- Many ASEAN countries prefer to remain neutral in the US–China strategic rivalry, making it difficult for India to strengthen its Indo-Pacific partnerships.
- Despite strong civilizational ties, India’s cultural engagement with the region has weakened in recent years, reducing its overall influence.
India and the Indo-Pacific: Strategic Relevance
- The Indo-Pacific is the world’s primary strategic and economic corridor, hosting over 60% of global maritime trade and 50% of global GDP.
- Its stability is vital to global supply chains, energy security, and the preservation of a rules-based maritime order.
- India’s Indo-Pacific vision is centered on building a free, open, and inclusive region that respects international law and the sovereignty of all nations.
- Moving away from traditional balancing, India’s strategy promotes cooperative security, ASEAN centrality, and sustainable economic growth.
Key Maritime and Regional Initiatives of India
- SAGAR (2015)
- India’s vision for Security and Growth for All in the Region, focusing on maritime security, economic cooperation, capacity building, and stability in the Indian Ocean.
- MAHASAGAR
- An expanded maritime vision that builds on SAGAR by promoting economic diplomacy, technological connectivity, sustainability, and India’s role in Humanitarian Assistance and Disaster Relief (HADR).
- Indo-Pacific Oceans Initiative (IPOI) (2019)
- A voluntary, non-treaty initiative based on seven pillars, including maritime security, ecology, resources, capacity building, disaster risk reduction, science and technology, and trade.
- Maritime Security and Blue Economy
- India promotes maritime security through joint patrols, anti-piracy efforts, and maritime domain awareness, while advancing the Blue Economy through the sustainable use of marine resources and resilient coastal infrastructure.
Way Forward & Conclusion
The Act East Policy has evolved into a key pillar of India’s Indo-Pacific strategy. Sustained implementation, stronger regional partnerships, and enhanced connectivity will be crucial for advancing India’s strategic and economic interests while contributing to a free, open, and inclusive Indo-Pacific.
Key Takeaways
UPSC Prelims and Mains Practice Question
With reference to India’s Act East Policy, consider the following statements:
- It was launched in 2014 as an upgrade to the Look East Policy.
- It focuses only on economic cooperation with ASEAN countries.
- It seeks to strengthen strategic, cultural, and connectivity ties in the Indo-Pacific.
Which of the statements given above is/are correct?
A. 1 and 3 only
B. 2 only
C. 1, 2 and 3
D. 3 only
Answer: A
Mains Practice Question
Q. Examine the significance of India’s Act East Policy in strengthening India’s strategic and economic engagement with the Indo-Pacific region.
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