Act East Policy

Act East Policy is India’s strategic outreach launched in 2014 to deepen economic, security, and cultural ties with Southeast Asia and the wider Indo‑Pacific. It builds on the earlier “Look East” orientation of the early 2000s, but adds a proactive, multilateral dimension that links trade corridors, maritime cooperation, and high‑technology partnerships to India’s growth agenda and regional stability goals.

Origins and Historical Background

The policy was announced by Prime Minister Narendra Modi on 23 May 2014, shortly after the Bharatiya Janata Party formed government. It succeeded the “Look East” policy first articulated by Prime Minister Atal Bihari Vajpayee in 1992 and later expanded under Prime Minister Manmohan Singh in 2000‑2014. The shift from “look” to “act” was codified in the Ministry of External Affairs’ 2015 “Act East Policy Framework”, which cited the 2013 ASEAN‑India Free Trade Area and the 2014 “Indo‑Pacific Oceans Initiative” as foundational documents. The framework also referenced the 2015 MoU on the Bangladesh‑China‑India‑Myanmar (BCIM) Economic Corridor, marking the first formal commitment to a trans‑regional infrastructure network.

Policy Mechanisms and Institutional Framework

Implementation rests on three inter‑locking mechanisms: (1) trade liberalisation through tariff reductions under the ASEAN‑India Free Trade Agreement (FAFTA), which cut duties on 90 % of goods by 2020; (2) connectivity projects overseen by the Ministry of Commerce and the Ministry of Road Transport & Highways, such as the $10 billion BCIM corridor and the $2.5 billion Kaladan Multi‑Modal Transit Transport Project linking Kolkata with Myanmar’s Sittwe port; and (3) strategic engagement coordinated by the Ministry of External Affairs and the Ministry of Defence, exemplified by the 2017 establishment of the “Act East Secretariat” in New Delhi. The policy also institutionalises annual Act East Summits, the first of which convened in New Delhi on 23 May 2018 with participation from all ten ASEAN members, Japan, Australia, and the United States.

India’s Journey and Major Initiatives

Between 2014 and 2023, bilateral trade with ASEAN rose from $13.5 billion in FY2010‑11 to $78.9 billion in FY2022‑23, according to the Ministry of Commerce. Investment flows mirrored this trend, with Indian FDI in ASEAN reaching $5.5 billion in 2022, driven by sectors such as pharmaceuticals, information technology, and renewable energy. Infrastructure milestones include the commissioning of the Vizhinjam International Seaport in Kerala in 2021, a deep‑water facility capable of handling 2.5 million TEU annually, and the operationalisation of the 1,500‑km Kaladan corridor in 2020, which reduced travel time between Kolkata and the Indian‑Myanmar border from 48 hours to 24 hours. On the security front, the Indian Navy’s Eastern Naval Command deployed the destroyer INS Kolkata to Singapore’s Changi Naval Base in 2022, marking the first permanent Indian warship presence in the region.

Current Status and Implementation

The third Act East Summit, held in Jakarta on 28 May 2023, produced a joint declaration to accelerate digital connectivity, with India pledging $1 billion for ASEAN‑wide broadband projects and a $500 million fund for start‑up incubation. In the same year, the Ministry of External Affairs reported that 27 new memoranda of understanding had been signed covering renewable energy, defence training, and maritime domain awareness. The Quad (United States, Japan, Australia, India) conducted its first joint naval exercise in the South China Sea in 2021, reinforcing the policy’s security dimension. As of 2024, the Ministry’s “Act East Dashboard” tracks 112 active projects, of which 68 % are in the pipeline and 34 % have reached implementation stage.

Strategic Significance

Act East Policy positions India as a bridge between the Indian Ocean and the Pacific, counterbalancing China’s Belt and Road Initiative while offering ASEAN a diversified set of partners. By coupling trade liberalisation with hard infrastructure and maritime security, the policy creates a comprehensive platform that supports India’s ambition to become a “net security provider” in the Indo‑Pacific. The policy’s multilateral architecture also enables India to participate in regional fora such as the East Asia Summit and the ASEAN Regional Forum, thereby amplifying its diplomatic leverage and contributing to a rules‑based order in a region that accounts for roughly 60 % of global GDP.