Over the past half a century India’s engagement with ASEAN has endured significant transformation, from cultural ties and economic relations to strategic and diplomatic partnerships. Intensive and continuous involvement with Southeast Asian countries in the field of connectivity, trade, culture, defense and people to people contact at bilateral, regional and multilateral levels has been revitalized. Under Act East policy India’s main concern about the economic development of North Eastern Regions (NER) eventually led to improvement in trade and people to people contact.
The Indian Myanmar Thailand (IMT) project which was conceptualized earlier got a big push and a speedy implementation resulting in a major influx in trade and economy. NER now serves as a gateway to Southeast Asia. The Kaladan Multimodal transit transport project is expected to be concluded by July 2025, between India’s eastern seaport and North-eastern states through Myanmar which shortens the distance between Kolkata and Sittwe port in Myanmar providing a strategic link to North-East there by reducing traffic on the Silliguri
Corridor. Apart from Myanmar, The Mekong India economic corridor (MIEC) which connects India with the Mekong region such as Cambodia, Laos, Thailand and Vietnam, has been another considerable initiative taken by India.
Another significant element is India’s active participation in regional groupings like Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) which
has strengthened India’s bond with Myanmar, Sri Lanka, Thailand, Nepal, and Bhutan leading three key sectors Transport & Communication, Tourism, and Counter-Terrorism &
Transnational Crime since 1997.
So, a niche area with respect to trade with the North Eastern countries under Act East Policy has been developed. Certain products are exclusively created for the Southeast countries such as Myanmar, Bhutan, Thailand, Vietnam and many more.
However, if we talk about larger dynamics the bigger nations have become extremely important in the field of trading and connectivity. The trade war between US and China has
dislodged the overall trading dynamics affecting the global supply chains, stock market and consumer prices. In order to protect the regional turf India needs to be a global player and
play with the biggies. To achieve that what India needs to do is strengthen its ties with bigger partners and use Quadrilateral Security Dialogue (QUAD) for that.
Recently, on 21st January 2025 a foreign ministers meeting was held in Washington DC which is marked as the first high level engagement among QUAD nations; India, The United
States, Japan and Australia. Surprisingly, China has been a major trading partners with QUAD nations but with U.S. putting 245% tariff on China it has raised a trade tension in
between two nations.
Therefore, China approached other QUAD nations for increasing their trade with them, particularly Australia and Japan. Australia has denied increasing significant trading with
China, India has also shown certain reluctance for the same. In order to strengthen its ties and do better in the global market India needs to put tarrifs on China along with The U.S., Japan and Australia.
Beyond physical connectivity the Act East Forum with Japan has been formulated in September 2017 where an official agreement was made during the India–Japan Annual
Summit in Gandhinagar, Gujarat. Recently on 19th February 2024 its 7th meeting was held in New Delhi, Co-chaired by India’s foreign secretory and Japan’s ambassador to India with
much participation from central ministers, implementing agencies and Northeastern state government of India.
Japan has financially supported the construction of over 750 km of new roads, in India.
The Act East policy supports the vision of a “Free, open and inclusive Indo-Pacific.” Where everyone is welcomed, rules are followed and no one bullies others. Countries can make
independent choices in foreign policy and trade. People and goods can move freely across borders especially though international waters like South China sea.
External Affairs Ministry has emphasized on act east policy being the cornerstone of India’s regional diplomacy and Indo-pacific vision for over a decade. U.S. being India’s largest trading partner, with bilateral trade valued at $190 billion until recently, a meeting was held in New Delhi with the motive of unlocking economic opportunities and negotiate a bilateral trade deal. Economy, trade and geopolitical ties were the major discussions. The visit from The U.S. is seen as an important diplomatic mission by the administration, as it coincides with a rapidly intensifying trade war between Washington and Beijing, which is New Delhi’s main rival in the region.
Therefore, in the coming years it has been expected that The Act East Policy will most likely become more strategic rather than diplomatic whether through stronger maritime exercises
or economic corridors. New Delhi is making it clear that the Indo pacific matters and India is here to lead, partner and secure the global power balance shift. India is now taking a
leadership role in Indo-Pacific affairs.
