sign in sign up
<<
Home , Look East policy (India)

LOOK EAST POLICY OF When did Look East Policy Start? Look East Policy of India was launched in 1991 by the Government of India led by the former Prime Minister Narasimha Rao. The objective was to develop political, economic and security co-operation with countries in . After the , India wanted to act as a counterweight to in Southeast Asia. Which policy of India succeeded Look East Policy? Act East Policy of India succeeded Look East Policy. The main objective was to have greater engagement in all spheres with countries in Southeast Asia as well as with far Eastern countries like , , and countries in the Pacific region like Australia. What is the difference between the Look East Policy and Act East Policy? The major difference is Act East Policy not only focussed on developing political co- operation but also a cultural and strategic relationship between India and extended neighbourhood of Asia Pacific region. India has upgraded its relationship to a strategic level with many Asia Pacific countries. There is continuous engagement with these countries at regional, bilateral, and multilateral level. There is a greater impetus on people to people contacts, involvement in infrastructure projects of India and enhanced co-operation in Maritime security-related issues. When was Act East Policy Launched? Act East Policy was launched in 2014 by the Government of India led by Prime Minister . Important Facts about Look East Policy of India 1. The look east policy tends to connect to ASEAN and the East Asian nations with an Asianisation content. 2. India has made several multilateral agreements with East Asian nations that have boosted India’s act east policy. 3. The significant bilateral relationships are mentioned below: • India-China Relations • India- Relations • India- Relations Other forums, regional groupings or platforms that have supported India’s look east policy are mentioned below: • BCIM – , China, India and Myanmar Economic Corridor • BIMSTEC – Bay of Bengal Initiative of Multisectoral Technical and & Economic Cooperation • SAFTA – South Asian Free Trade Area • ASEAN – Association of South Eastern Asian Nations • EAS – • MGC – Mekong-Ganga Cooperation

www.pragnyaias.com 7288081111

The first Trans Asian Car rally from Guwahati to Batam (Indonesia) passing through North Eastern States of India, Myanmar, , Laos, , , Malaysia and in 2004 was an important sign for the advent of India’s Look East Policy. Several governmental initiatives that boosted India’s Look East Policy are: • Trans Asian highway starting from Singapore to Istanbul passing through India • Trans Asian Railway from Delhi to • 800 km long Trans-National Gas Pipe Line between Myanmar, Bangladesh and India Significance of India’s Look East Policy 1. The North-Eastern states of India were given a direct role under the Look East Policy. 2. Opening the doors for maritime oriented look east policy by bringing in pictures the coastal states of East India. This way it will help to build relations with southeastern nations that are dominantly coastal. 3. The look east policy was seen as a step towards competing China’s presence in East Asia. ACT EAST POLICY OF INDIA, LAUNCHED IN 2014 - A COMPREHENSIVE OVERVIEW 1. India’s Act East Policy is based on 4 C’s – Culture, Commerce, Connectivity and Capacity Building. 2. As described by PM Modi, India’s vision for the region is SAGAR – Security for All and Growth for All. 3. This article covers the ‘Act East Policy’ of India launched in 2014 and helps one understand its difference with ‘Look East Policy’ of India launched in 1991. ‘Act East Policy’ of India – Objectives The Objective of ‘Act East Policy’ is to promote economic cooperation, cultural ties and develop a 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 with other countries in our neighbourhood. Difference between Act East Policy (2014) and Look East Policy (1991) Both the policies are 2 succeeding phases, in the evolution of India’s policy towards South East Asia and East Asia. Some of the major differences in the ‘Act East’ Policy and ‘Look East’ Policy of India are mentioned in the below table.

ACT EAST POLICY LOOK EAST POLICY

Act East Policy was launched in 2014 Look East Policy was launched in 1991

It was launched by Current Prime Minister It was launched by former Prime Minister of India – Narendra Modi of India – PV Narasimha Rao

www.pragnyaias.com 7288081111

India was in a very favourable position India had a very fragile economy when from the perspective of economic might Look East Policy was launched, due to the when Act East Policy was launched in 1991 Economic crisis. India was in a 2014. transition phase to a liberalized economy.

Focus is more on boosting economic co- Focus more on boosting economic co- operation, building infrastructure for operation. greater connectivity, importantly strategic & security ties

This was initiated to tackle the changing The Indian economy was heavily Geo-political scenario due to dominance dependent on the Soviet Union, but the fall by China, in the South China Sea and its of Soviet Bloc propelled India to look at increasing influence in the Indian Ocean alternative regions, i.e. South East Asia to Region. sustain the economy. India realised there was immense scope for growth in the region, as Japan and China had already become a major economic player in the region.

Act East Policy has a greater strategic and The focus was more on boosting trade and political angle to the cooperation. investment relations with Southeast Asian Relationships with Japan, South countries. There was not much focus on Korea, Vietnam, Malaysia, and Australia Quad – India, USA, Japan and Australia or have been upgraded to a strategic up-gradation to the strategic partnership partnership to counter the dominance of with other nations in the region. China in the entire region.

Focusing more on historical, cultural, Historical ties between India and ASEAN linguistic and religious ties through more were not given much prominence and people to people exchanges. therefore not capitalised in its Look East Policy.

Heavy focus is being given to the North East of India was neglected in its development of the North East region. plans of forging deeper ties with East Asia. India believes that the North East region of India can be the gateway to East Asia and Southeast Asia. Japan is helping India by providing funds for many infrastructure projects.

www.pragnyaias.com 7288081111

India is collaborating with Japan in India did not focus on developing developing infrastructure in Sri Lanka, infrastructure in other countries. Myanmar and Bangladesh

Greater focus on defence cooperation Not much focus on defence cooperation Some of the similarities between both Act East Policy of 2014 and Look East Policy of 1991 are listed below. 1. Shared Economic Interests 2. Common Strategic Interests. Association of South East Nations (ASEAN) – Introduction ASEAN was founded in 1968. It is a grouping of 10 nations, geographically located in the South-East Asia Region. The 5 founding members of ASEAN are 1. Thailand 2. Singapore 3. Indonesia 4. 5. Malaysia India became a member of ASEAN Regional Forum (ARF) in 1996. India and ASEAN started holding annual summits from 2002 to give an impetus to co-operation in the following areas. 1. Economic ties 2. Social-Cultural ties 3. Political ties 4. Strengthen Security ties Act East Policy of India – Institutional Mechanisms & Regional Forums To build greater cooperation between India & ASEAN the following institutional mechanisms are used to forge stronger partnerships. 1. Annual Summit Level Meetings 2. India is an active member of the East Asia Summit 3. 30 Sectoral Dialogue Mechanisms 4. India has become an active member of ARF (ASEAN Regional Forum) 5. India has also been involved with other regional forums like the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), Mekong Ganga Cooperation, Asia Cooperation Dialogue and the Indian Ocean Rim Association (IORA). India & ASEAN – Infrastructure, Trade & Commerce Ties 1. India’s 4th Largest Trading Partner is ASEAN. 2. In the Financial Year 2017-18, the volume of trade between both nations was more than $ 80 billion. 3. In the same financial year, India’s imports from ASEAN were more than $ 45 billion and India’s exports to ASEAN were around $ 34 billion.

www.pragnyaias.com 7288081111

4. AIFTA (ASEAN – India Free Trade Area) i.e. free trade area between India and ten member states of ASEAN came into effect in 2010. 5. Supporting ASEAN startups through ASEAN India Grand Challenge to provide a commercially viable solution for key problems of India. 6. Some of the major Infrastructure projects are Kaladan Multi-modal Transit Transport Project, the India-Myanmar-Thailand Trilateral Highway Project, Rhi-Tiddim Road Project, Border Haats, etc 7. In August 2015, the ASEAN-India Plan of Action (2016 – 2020) was adopted. This identifies concrete steps and cooperation areas on the triumvirate of political-security, socio-cultural and economic pillars. 8. Recently India started building a deep seaport in Sabang, Indonesia. This is to further strategic cooperation between India and Indonesia. Sabang is close to Andaman and Nicobar Islands of India. Japan – Investments in India 1. India and Japan have institutionalised 2+2 Ministerial Dialogue. 2. Focus is more on doubling Japanese investments in India in sectors like Transportation (Bullet Train is an example), smart cities, skill development etc. 3. India has decided to set up Japanese Industrial townships and electronic parks. 4. Japanese investments in India increased from $1.7 billion in 2014 to $4.7 billion in 2016-17. 5. Japanese Investments have flowed into vital sectors like chemical, automobile, pharmaceuticals and telecommunications. South Korea – Investments in India 1. By the end of 2018, FDI from South Korea reached more than $5.5 billion. 2. South Korea has a huge presence in the Indian automobile market through Hyundai and in the electronics segment through Samsung, LG. ASEAN – Investments in India From 2000, the FDI (Foreign Direct Investment) received by India from ASEAN is $ 77 billion. In the coming years, this will see an upward trajectory. Investment from ASEAN countries has flowed into India in the following domains. 1. Auto Components 2. Shipping 3. Ports 4. Highways 5. Food Processing Quad – (Quadrilateral Security Dialogue) 1. Quad is an informal strategic dialogue between India, Japan, USA, and Australia 2. It was established in 2007, however, it did not find much traction as Australia withdrew. 3. Quad was reestablished in 2017, after meeting between 4 Heads of States at the ASEAN Summit in 2017. 4. The reason for its revival was the growing tensions in the South China Sea due to the territorial ambitions of China in the region.

www.pragnyaias.com 7288081111

5. Indian Navy conducts massive military exercises with the US Navy and Japanese Navy; named Malabar Exercise. Regional Comprehensive Economic Partnership Program (RCEP) 1. It is a proposed Free Trade Agreement between 10 members of ASEAN and 5 FTA Partners (Australia, New Zealand, China, Japan, South Korea) of ASEAN. 2. Although India is an FTA partner of ASEAN, it opted out of RCEP in November 2019. 3. India cited that RCEP will negatively impact on Indian citizens. Way Forward – India & ASEAN 1. Regional Value chains need to be created to expand the economic cooperation between India and ASEAN. 2. India is World’s largest producer of milk and 2nd largest producer of food grains. Regional value chains can add value to the food processing sector and the agriculture sector. 3. Collaborate more in the field of design, engineering, Research & Development. 4. Promote cooperation between Small and Medium Enterprises (SME) through technology transfers, joint ventures, and business partnerships. 5. For faster growth in the economic ties between India & ASEAN, more focus needs to be given in areas such as transportation, banking, Information Technology Services, and Environmental Services. 6. Japan is investing in projects to help develop infrastructure in the North East of India. Under current PM Modi, India believes that North East is the gateway to Southeast Asia and East Asian countries. 7. Give more thrust to Air Connectivity, land connectivity and Maritime security as a major chunk of World’s trade passes through this region. 8. On the civilization front, Buddhist and Hindu links could be promoted to forge new contacts and connectivity among the people.

www.pragnyaias.com 7288081111