Ten years of India’s Act East Policy

This year marks the completion of 10 years of India’s Act East Policy (AEP), an upgrade from its earlier Look East Policy, which was announced on 13 November 2014, by the Indian Prime Minister at the ninth East Asia Summit in Nay Pyi Daw, Myanmar. The announcement marked a new shift in India’s strategic outlook, elevating Southeast Asia’s stature in India’s geostrategic calculus. Since then, India’s Act East Policy has also influenced India’s engagement with the Indo-Pacific region, playing the role of a North Star. As the Prime Minister travels to Laos for the 21st ASEAN-India and 19th East Asia Summit (EAS) on the 10^th and 11^th of October, assessing India's progress becomes critical.

A crucial aspect of India’s Act East Policy is the strategic convergence between India and ASEAN’s political imagination of the Indo-Pacific region, emphasised by India’s commitment to ASEAN centrality, ASEAN Unity, and ASEAN Outlook on the Indo-Pacific (AOIP).

A crucial aspect of India’s Act East Policy is the strategic convergence between India and ASEAN’s political imagination of the Indo-Pacific region, emphasised by India’s commitment to ASEAN centrality, ASEAN Unity, and ASEAN Outlook on the Indo-Pacific (AOIP). This convergence has translated into strengthening the comprehensive strategic partnership between India and ASEAN and increasing bilateral high-level visits, as shown in Figure 1, a critical marker of deepening ties with the region. Similarly, on the ASEAN side, we see greater alignment with India regarding a spectrum of issues, ranging from trade to connectivity, defence, and security. This partnership ensures that the Indo-Pacific region upholds the international rules-based order and remains the epicentre for the next phase of global economic growth.

Figure 1: High-Level Official Visits between 2014-Present

Source: Made by Author

*High-level officials' visits only include visits from the president, vice president, and prime minister.

*This table also includes important virtual summits with ASEAN member countries.

Diplomacy, defence, and security cooperation

The most significant contribution of the AEP has arguably been the considerable expansion of India’s diplomatic and geostrategic outreach. While the Look East Policy had primarily focused on economic cooperation, AEP has emphasised strategic dimensions, particularly in the Indo-Pacific region. This approach was prompted by the rising geopolitical importance of the Indo-Pacific and the mounting challenges and uncertainties posed by China’s assertions across the region. Maritime security, particularly in the Indo-Pacific, has been a central concern, prompting India’s proactive role in ensuring freedom of navigation, supporting maritime domain awareness capabilities, and tackling non-traditional security threats like piracy. This has positioned India as a reliable partner in regional security frameworks, bolstered by its participation in the Quad and other multilateral platforms.

While the Look East Policy had primarily focused on economic cooperation, AEP has emphasised strategic dimensions, particularly in the Indo-Pacific region.

A fundamental approach in India’s diplomacy has been bolstering policy synergies. For instance, the Indo-Pacific Oceans Initiative (IPOI) and the AOIP are complementary in many respects. India has emerged as a strong voice in the East Asia Summit (EAS), ASEAN Regional Forum (ARF), and ASEAN Defence Ministers Meeting (ADMM-Plus), consolidating its diplomatic footprint. This institutional engagement has been critical for maintaining India’s relevance in the rapidly evolving dynamics of Southeast Asia, reflected in the first India-ASEAN maritime exercises in 2023 and its intensifying defence diplomacy with strategic partners in the region. Yet, as the policy matured, its scope widened beyond ASEAN. India’s deepening strategic ties with Japan, South Korea, and Australia have been equally important in shaping its Indo-Pacific strategy. Japan, in particular, has become one of India’s closest partners under AEP, with bilateral defence cooperation becoming a cornerstone of their relationship.

Trade and connectivity

Currently, India is ASEAN’s seventh-largest trading partner, while ASEAN is India’s fourth-largest partner. Substantial progress has been achieved between India and Southeast Asia since the signing of the trade agreement; in the last FY23, the trade reached US$ 122 billion dollars, up from US$ 9 in 2002, and is expected to cross US$ 150 by the end of 2024 (as shown in Figure 3). Indian private sector companies, such as Jindal Steel, TVS Motor, and Bluebird Solar, have particularly shown interest in the emerging market and invested in renewable energy, mobility startups, mining, and pharmaceuticals sectors. However, issues linked to trade imbalance persist, such as the burgeoning deficit of US$ 44 billion in FY23, an increase from US$ 7.5 billion in FY11. It is expected that the review of the ASEAN-India Trade in Goods Agreement (AITIGA) by 2025 will further enhance and diversify bilateral trade, making it more beneficial for both parties.

Figure 2: India-ASEAN Trade Figures (USD Billions)

Source: Department of Commerce

Connectivity projects—infrastructure and digital—are emerging as crucial pillars of India’s AEP to realise the full economic and trade potential. Two major projects are catered towards improving connectivity: the India-Myanmar-Thailand Trilateral Highway and Kaladan Multi-Modal Transit Transport (KMMTT) (Waterway and Roadway component). The former is being built, and the latter was inaugurated on 9 May 2023 (currently operational). Technological ties have become an important pillar of India’s Act East Policy, emphasising close cooperation with members of Southeast Asian countries like Singapore and Malaysia. This shift was visible in the Indian PM’s recent visit to Singapore, where both sides signed cooperation agreements on semiconductors, considered the backbone of the next industrial revolution. Besides, India also engages in capacity-building through the Indian Technical and Economic Cooperation (ITEC) programme with Southeast Asian countries like Cambodia, Laos, and Vietnam. Digital connectivity is a crucial link that both countries focus on establishing for increasing commerce, cooperation, and other purposes, such as through initiatives like the Digital Public Infrastructure (DPI) and India-ASEAN fund for the digital future.

Technological ties have become an important pillar of India’s Act East Policy, emphasising close cooperation with members of Southeast Asian countries like Singapore and Malaysia.

Cultural connect

The cultural component of India’s AEP continues to play a vital role in strengthening ties with Southeast Asia by leveraging shared historical and civilisational linkages. Key initiatives include promoting Buddhist heritage through projects like the revival of the Nalanda University and the International Buddhist Confederation, which reinforce spiritual and cultural connections with countries like Myanmar, Thailand, and Cambodia and underscore India’s active role in fostering the revival of Buddhist circuits. Educational and cultural exchanges are another important aspect, with India offering scholarships to ASEAN students and establishing the ASEAN Socio-Cultural Community under the ASEAN-India Cultural Centre. The Indian diaspora in countries like Malaysia and Singapore act as a cultural bridge, strengthening bilateral relations. Additionally, yoga diplomacy has gained prominence, with Southeast Asia embracing International Yoga Day, further enhancing India's cultural outreach. The cultural component of AEP is deeply intertwined with India’s strategic and economic initiatives, as it facilitates mutual understanding and strengthens diplomatic efforts.

Conclusion

The 10 years of AEP have brought remarkable changes in trade, connectivity, technology, defence and security ties, further emboldening India’s comprehensive strategic partnership with the Southeast Asian region. As Southeast Asia becomes increasingly vulnerable to climate change and non-traditional security threats, India’s role in regional disaster management, climate diplomacy, and maritime domain awareness is set to grow. In his 2023 discussion with ASEAN leaders, PM Modi gave a new blueprint for the next phase of cooperation with the region in his 12-point proposal, emphasising the need to strengthen and expand the ties further into new domains. India is also working with ASEAN on global challenges like food security and climate change, as reflected in their participation in the Global South Summit. India should also work to expand its network of strategic partnerships by engaging more proactively with middle powers in the Indo-Pacific, such as South Korea, Vietnam, and New Zealand.

Abhishek Sharma is a Research Assistant at the Observer Research Foundation

Pratnashree Basu is an Associate Fellow with ORF’s Strategic Studies Programme.

The authors would like to acknowledge the efforts of Yuvvraj Singh and Ria Nair, Research Intern, who helped with data compilation

• Domestic Politics and Governance
• India
• ASEAN centrality
• cultural diplomacy
• defence cooperation
• India's Act East Policy
• Indo-Pacific Region
• maritime security
• strategic partnership
• technological ties
• trade and connectivity

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