At 10, the path ahead for India’s Act East policy

Strengthened diplomatic outreach and expansion in the geographical scope of India’s engagements are two of AEP’s most significant contributions in the past decade. These two aspects are firmly underpinned by a distinctive strategic dimension, contrasting with the earlier LEP, which was primarily economic in focus, and aimed at integrating India into the fast-growing economies of Southeast Asia after the collapse of the Soviet Union. However, AEP under Prime Minister (PM) Narendra Modi took a broader approach, incorporating security cooperation, regional connectivity, and institutional engagement with the Association of Southeast Asian Nations (Asean) and East Asian nations. The transition from “looking” east to “acting” east signalled India’s intent to play a more active and strategic role in the region emphasising the four Cs: Culture, Connectivity, Commerce, and Capacity Building.

One of the major milestones in the 10 years of AEP has been elevating India’s relationship with Asean to a strategic partnership. This deepened collaboration, formalised in 2018 during the India-Asean Commemorative Summit, reflects the enhanced cooperation between India and Southeast Asia in areas like defence, trade, and cultural exchange. Since 2015, bilateral trade has almost doubled, there has been a notable rise in India’s exports and foreign direct investment from Asean countries, alongside an improvement in India’s diplomatic visibility across the region.

Another key success has been articulating India’s Indo-Pacific vision, most notably in PM Modi’s 2018 speech at the Shangri-La Dialogue. This marked India’s formal entry into the broader Indo-Pacific discourse, where it emphasised a free, open, and inclusive region. India’s vision of the Indo-Pacific is underpinned by its commitment to maritime security, regional stability, and augmenting its role as a net security provider. This shift was about expanding India’s diplomatic reach and a response to the ambiguities surrounding China’s growing assertiveness in the region.

Third, India’s Indo-Pacific outreach, closely linked with the AEP, is centred around maritime security cooperation. India has significantly enhanced its defence diplomacy through bilateral and multilateral frameworks, focusing on maritime security, counter-terrorism, and defence capacity-building.

Finally, India’s effort to enhance regional connectivity through infrastructure projects, such as the India-Myanmar-Thailand Trilateral Highway, the Protocol on Inland Water Transit and Trade, the use of Chattogram and Mongla Ports of Bangladesh for movement of goods to and from India, and so on. Many of these, however, have been plagued by delays, which have left its northeastern region underdeveloped and under-integrated with Southeast Asia. India must also focus on expanding its maritime infrastructure, particularly on its eastern seaboard, to enhance its position as a hub for maritime trade and security. Given the increasing importance of the Indo-Pacific in global geopolitics, India will need to deepen its security cooperation with both Asean nations and Quad partners.

On the economic front, India must reassess its trade diplomacy, particularly in the context of the strong dependencies of regional economies on China. India’s trade with Asean has grown but remains below its potential. Without a robust trade agreement in place, India’s economic engagement with Southeast Asia has lacked the dynamism seen in its strategic and diplomatic overtures. India could pursue bilateral trade agreements with Asean nations or develop new frameworks that better protect its domestic industries while promoting regional economic integration. Digital economy partnerships, particularly in areas like fintech and e-commerce, offer promising opportunities for collaboration.

Finally, India must leverage its soft power to build stronger cultural and people-to-people ties with Southeast Asia. The Indian diaspora in the region, cultural exchanges, and educational collaborations remain underutilised tools in India’s diplomatic arsenal. As regional geopolitics grows more complicated, it can serve as a bridge to strengthen its political and economic relationships. The next decade of the AEP will be crucial in positioning India to strengthen its leadership in the increasingly dynamic Indo-Pacific region.

Harsh V Pant is vice president, Studies and Foreign Policy at Observer Research Foundation (ORF).Pratnashree Basu is an associate fellow, Indo-Pacific, ORF. The views expressed are personal

Get Current Updates on…

See more