Act East Policy

India's Look East (now Act East) policy is an effort to cultivate extensive economic and strategic relations with the nations of Southeast Asia in order to bolster its standing as a regional power and a counterweight to the strategic influence of China. Initiated in 1991, marked a strategic shift in India’s perspective of the world. It was developed and enacted during P.V. Narsimha Rao’ government.

Recent Developments

Moreh-Tamu Land Route Opened

  • Sixteen years after India, Myanmar, Thailand agreed to build a 1,300-km highway, to bind the three countries together, and bring India closer to ASEAN, two crossings were opened on August, 2018. The aim is to cover 500 km, from Myanmar’s border with India at Moreh, to Mandalay in central Myanmar, the first leg of the ‘Trilateral Highway’.
  • Trilateral Highway: This is the ambitious project that seeks to connect India with Myanmar and onwards to Thailand, which India hopes will be its gateway to ASEAN. The first 160 km stretch is called the India-Myanmar Friendship Highway (IMFH).
  • Since the 1990s, India has recalibrated its Myanmar policy with the Look East and Act East visions. Trilateral highway is key to entry into the ASEAN region and strengthen the Act East policy of India.

Indonesia: A Close Maritime Neighbour of India

Prime Minister Narendra Modi paid the first official visit to Indonesia on 29-30 May, 2018. His visit to Indonesia was a part of his five-day, three-nation visit to Singapore, Indonesia, and Malaysia - to boost the Act East Policy and strengthen ties with the ASEAN countries.

Agreements Signed

Maritime Cooperation: India and Indonesia will develop a naval port in Sabang, a strategic location on the tip of Sumatra Island and at the entrance of the vital Malacca Straits. The two countries also agreed to step up defence and maritime cooperation, with both countries agreeing to align their national maritime policies - India’s Indo-Pacific policy with Indonesia’s policy of ‘global maritime fulcrum’.

Free Visa: Prime Minister Narendra Modi announced a 30-day free visa for Indonesian citizens and invited the diaspora to travel to their country of origin to experience the ‘New India’.

Bilateral Trade: India and Indonesia agreed to double their efforts to boost bilateral trade to $ 50 billion by 2025.

Signing of Two Major Agreements: India and Indonesia signed two major agreements on defence and space, 13 MoUs on trade, culture, archaeology, etc.

Exercise Komodo

  • On May 4, Indonesia officially launched the 2018 iteration of its biennial multilateral naval exercise Komodo (MNEK). The drills, featured participants from neighbouring Southeast Asian countries’ major powers such as China and India. Komodo 2018 was hosted from May 4 to May 9 in Lombok Island and nearby waters with a focus on cooperation to respond to disasters and humanitarian crises.

Strategic Importance of Asia’s Longest Bi-directional Tunnel

  • Prime Minister Narendra Modi on May 19 laid the foundation stone for the Rs 6,808.69-crore strategic Zojila tunnel, Asia’s longest bi-directional tunnel, in Jammu and Kashmir. It spans over 14.15 km, which is expected to be completed in 2026.
  • This pass is most strategic for the entire Kargil sector which has seen intrusion and war in the past and will help the armed forces for round-the-clock supplies.
  • It will provide connectivity to the region besides employment to the local youths.
  • The tunnel will cut through mountains, providing a safer and quicker alternative to the Zojila pass.
  • It will connect the Kashmiri hill-station Sonmarg to the town of Dras in Kargil. The two lane tunnel will be more than 14 km long.
  • When completed, it will be Asia’s longest bi-directional tunnel and a veritable marvel of engineering.
  • The Zoji La tunnel will likely have an unprecedented impact on the entire region. Currently, the NH1A is one of the only two routes to access the region of Ladakh. The other route makes its way from Manali, Himachal Pradesh straight up north through the Rohtang pass, into Ladakh.

Look East to Act East Policy

In November 2014, Look East policy was renamed as “Act East” policy by the Prime Minister Narendra Modi in the 9th East Asia Summit in Nay Pyi Taw, Myanmar.

  • India’s Act East Policy focusses on the extended neighbourhood in the Asia-Pacific region. The policy which was originally conceived as an economic initiative, has gained political, strategic and cultural dimensions including establishment of institutional mechanisms for dialogue and cooperation.
  • India has upgraded its relations to strategic partnership with Indonesia, Vietnam, Malaysia, Japan, Republic of Korea (ROK), Australia, Singapore and Association of Southeast Asian Nations (ASEAN) and forged close ties with all countries in the Asia-Pacific region.
  • Further, apart from ASEAN, ASEAN Regional Forum (ARF) and East Asia Summit (EAS), India has also been actively engaged in regional fora such as Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), Asia Cooperation Dialogue (ACD), Mekong Ganga Cooperation (MGC) and Indian Ocean Rim Association (IORA).
  • Act East Policy has placed emphasis on India-ASEAN cooperation in our domestic agenda on infrastructure, manufacturing, trade, skills, urban renewal, smart cities, Make in India and other initiatives. Connectivity projects, cooperation in space, S&T and people-to-people exchanges could become a springboard for regional integration and prosperity.

Approaches Evolved for Act East Policy

Multidimensional Approach: Various plans at bilateral and regional levels include steady efforts to develop and strengthen connectivity of Northeast with the ASEAN region through trade, culture, people-to-people contacts and physical infrastructure (road, airport, telecommunication, power, etc.). Some of the major projects include Kaladan Multi-modal Transit Transport Project, the India-Myanmar-Thailand Trilateral Highway Project, Rhi-Tiddim Road Project, Border Haats, etc.

Regional Cooperation: The ASEAN-India Plan of Action for the period 2016-20 has been adopted in August 2015 which identifies concrete initiatives and areas of cooperation along the three pillars of political-security, economic and socio-cultural. India continues with stepped up efforts to forge closer partnership with concerned regional and Multilateral Organisations such as ASEAN, ARF, EAS, BIMSTEC, ACD, MCG and IORA.

Cultural Contacts: On the Civilisational front, Buddhist and Hindu links could be energized to develop new contacts and connectivity between people. On Connectivity, special efforts are being made to develop a coherent strategy, particularly for linking ASEAN with our North East. Measures, including building transport infrastructure, encouraging airlines to enhance connectivity in the region, contacts between academic and cultural institutions are underway.

Economic Cooperation: India’s economic engagement with ASEAN has been stepped up – regional integration and implementation of projects are priorities. The ASEAN-India Agreement on Trade in Service and Investments has entered into force for India and seven ASEAN countries from 1 July 2015. The ASEAN-India Trade Negotiating Committee has been tasked to undertake a review of the ASEAN-India Trade in Goods Agreement.

Mutual Strategic Interest: On strategic issues, India has increasing convergence on security interests with key partners both in bilateral and multilateral format. Closer cooperation in combating terrorism, collaborating for peace and stability in the region and promotion of maritime security based on international norms and laws are being pursued.

Objectives of the “Act East Policy”

  • The objective of “Act East Policy” is to promote economic cooperation, cultural ties and develop strategic relationship with countries in the Asia-Pacific region through continuous engagement at bilateral, regional and multilateral levels thereby providing enhanced connectivity to the States of North Eastern Region including Arunanchal Pradesh with other countries in our neighbourhood.
  • The North East of India has been a priority in our Act East Policy (AEP). AEP provides an interface between North East India including the state of Arunachal Pradesh and the ASEAN region.

Criticism of India’s Act East Policy

  • For a major part of the post-independence period, ‘continental mindset’ had dominated Indian strategic thinking. Border disputes and wars with Pakistan and China have been the major factors that have contributed to this thinking.
  • The influence of continental mindset is evident in India-Southeast Asia relations. Currently, only two projects are underway to improve connectivity between India and Southeast Asia. One is the India-Myanmar-Thailand Trilateral Highway, running from Moreh in Manipur state in Northeast India to Mae Sot in Thailand passing through Myanmar, and the other is Kaladan Multi-Modal Transit Transport Project.
  • The trilateral highway is also expected to be further extended to Laos and Cambodia. The Kaladan project will connect Indian’s state of Mizoram (again in Northeast India) with the rest of India as well as with Southeast Asia.
  • In many of the events (any turmoil in the ASEAN region), the government of India showed less interests in the matters like Myanmar political crisis, etc. On the same time there existed many MOUs between the nations though the actual economic trade is still not very significant between ASEAN and India.

Ways to Improve

If India wants its Act East policy to be successful it needs to take a number of further steps:

  • Build and Maintain Infrastructure: India must strengthen important infrastructure projects such as the trilateral highway linking India–Myanmar–Thailand, etc. India should enhance its connectivity with ASEAN instead of dragging its feet. Connectivity through road, rail, maritime and air can foster trade integration between ASEAN and India.
  • Promoting Diaspora: India needs to utilise its diaspora more effectively. So far, it has engaged only with the Indian diaspora in Singapore, Malaysia and to some extent Thailand. India needs to pay greater attention to the Indian community in Myanmar.
  • Enhance Engagement with other Countries: There is scope for greater engagement with countries like Indonesia and the Philippines. There is immense potential for strengthening India–Indonesia relations.
  • Make States Key Stakeholders: A large number of Indian states are beginning to engage with Southeast Asian countries, especially Singapore and Malaysia. While it is logical to make north eastern states key stakeholders in the Act East policy, it is also important to rekindle ties between other Indian states and ASEAN countries.
  • Engage in Trade: For a big leap, India must move up the manufacturing and technology frontier, with greater propensity and capacity to export products like electrical machinery, nuclear reactors, iron and steel, and vehicles.
  • Reduce Bottlenecks: Alongside, India must focus on encouraging and adopting trade facilitation measures like simplification and harmonisation of trade procedures, setting regional single windows for custom clearance, recognition of custom transit documents and proper coordination between border authorities.
  • Increase People to People Contact: Indian cities that share a common history and heritage with countries in ASEAN can deepen relations on the basis of religious history. For instance, the Buddhist site of Sarnath near Varanasi receives a large number of tourists, many from Thailand.

ASEAN -India Rising Bonhomie

  • India rolled out a red-carpet welcome to leaders from the Association of Southeast Asian Nations (ASEAN) to mark 25 years of New Delhi’s ties with the ASEAN bloc, as part of India’s “Act East” policy.
  • All 10 heads of states from ASEAN (comprising of Singapore, Cambodia, Vietnam, Indonesia, Malaysia, Thailand, Myanmar, Philippines, Laos and Brunei) were invited as chief guests at India’s 69th Republic Day celebrations.

Background

  • India and ASEAN observed 25 years of their Dialogue Partnership, 15 years of Summit Level interaction and 5 years of Strategic Partnership throughout 2017 by undertaking a wide range of activities, both in India and through the Missions in ASEAN Member States, which culminated in a Commemorative Summit on the theme “Shared Values, Common Destiny” on 25 January 2018.

Significance for India

  • The celebration was preceded by the Delhi Declaration, which (among other things) called for deepened counterterrorism ties between India and ASEAN. The Delhi Declaration underlines specific concerns about cross-border terrorism and freedom of navigation that commits them to an early implementation of various agreed projects, including their Plan of Action 2016-2020.
  • The enhanced ties between the two entities follow a convergence of interests on various issues connected to the Asia-Pacific region. These include regional stability, maritime security, prevention of terrorism, increased connectivity via sea, land and air, and amplified trade between the nations involved.
ASEAN-India Summits and East Asia Summits: Past, Present and Projected
Year Venue (ASEAN) ASEAN-India Summit East Asia Summit Host & Venue (EAS)
2020 Vietnam 18th 15th EAS Vietnam
2019 Thailand 17th 14th EAS Thailand
2018 Nov Singapore Breakfast Informal Summit 13th EAS 14-15 Nov Central Area, Singapore
2018 25 Jan New Delhi

Commemorative Summit


2017 14 Nov Manila,Philippines 15th 12th EAS, Pasay, Ph. 13-14 Nov Pasay, Philippines
2016 08 Sep Vientiane, Laos 14th 11th EAS, 6-8 Sep

Vientiane, Laos

2015 Kuala Lumpur,Malaysia 13th 10th EAS 21-22 Nov Kuala Lumpur, Malaysia
2014 Nay Pyi Taw, Myanmar 12th 12-13 Nov 9th EAS Nay Pyi Taw Myanmar (Burma)
2013 9-10 Oct Bandar Seri Begawan, Brunei 11th 8th EAS 9-10 Oct

Bandar Seri Begawan, Brunei

2012 20-21 Dec New Delhi Commemorative Summit
2012 19 Nov Phnom Penh, Cambodia 10th 7th EAS 19-20 Nov Phnom Penh, Cambodia
2011 19 Nov Bali, Indonesia 9th 6th EAS 18-19 Nov

Bali, Indonesia

2010 30 Oct Hanoi, Vietnam 8th 5th EAS 30 Oct Hanoi, Vietnam
2009 24 Oct Thailand 7th 4th EAS 25 Oct Cha-am & Hua Hin, Thailand
2007 Singapore 6th 21 Nov 3rd EAS 21 Nov

Singapore

2007 14 Jan Cebu, Philippines 5th 2nd EAS 15 Jan Mandaue, Philippines
2005 13 Dec Kuala Lumpur, 4th 1st EAS 14 Dec 2005

Kuala Lumpur,Malaysia

2004 30 Nov Vientiane, Laos 3rd
2003 Bali, Indonesia 2nd
2002 5 Nov Phnom Penh, Cambodia 1st