Rewind: The Journey to the East

The shift was prompted by the end of the Cold War, which not only severed India’s longstanding ties with the Soviet Union but also strained its economy due to rising oil prices during the Gulf War. In response, India sought new partnerships in Southeast Asia, where historical and cultural ties already existed.

The 'Look East Policy' led to formal dialogues with the Association of Southeast Asian Nations (ASEAN) starting in 1992, eventually culminating in the ASEAN-India Comprehensive Strategic Partnership in 2022. It was during Prime Minister Narendra Modi's tenure that this policy was rebranded as the 'Act East Policy' at the India-ASEAN summit in Myanmar in 2014. Modi emphasised a more proactive role in the region, focusing on four pillars: Culture, Commerce, Connectivity, and Capacity Building.

The 'Act East Policy' aims to strengthen India’s economic and security relations with Southeast Asia, Northeast Asia, and Oceania, positioning India’s Northeast as a vital regional gateway. External Affairs Minister Dr S. Jaishankar has underscored the potential for enhanced connectivity through initiatives that link Myanmar and Bangladesh, thus improving trade routes to Vietnam and the Philippines.

However, India faces significant challenges, particularly political instability in Myanmar, which has hindered ongoing connectivity projects like the Kaladan Multi-Modal Transport Transit Project. Additionally, unrest in Bangladesh poses risks to India’s development initiatives and may increase cross-border crime.

The economic aspect of the 'Act East Policy' is crucial, as ASEAN nations are significant investors in India. Yet, India struggles with a growing trade deficit with ASEAN, which reached $43 billion in 2023. Its withdrawal from the Regional Comprehensive Economic Partnership (RCEP) negotiations has raised concerns about waning trade engagement with ASEAN countries.

In the Indo-Pacific region, India aims to counterbalance China's rise through strategic partnerships and military collaboration with nations such as Japan, Australia, and the Philippines. The revived Quad initiative has further established India as a key player in regional security.

As India advances the 'Act East Policy,' it must adeptly navigate complex geopolitical dynamics while strengthening economic and security ties to bolster its influence in the region. Effective management of domestic and regional challenges will be essential for India to assert itself as a significant power in the evolving global landscape.