Comparing India’s Look East and Act East Policies

The Look East Policy was launched in the year 1992 by Indian Prime Minister PV Narsimha Rao, a year after the disintegration of the USSR (Soviet Union) in 1991. The Dissolution of the USSR ended the Cold War. India was heavily dependent on the Soviet Union. After its fall, India faced an economic crisis. Therefore, it turned towards the countries of South East Asia. India saw the immense scope of economic growth in South East Asia and also noticed that Japan and China emerged as key entities in the region. This policy was continued even after the reign of PV Narsimha Rao (1991-96). It was successfully enforced by Atal Bihari Vajpayee (1998-2004) and Manmohan Singh (2004-2014). The Look East Policy had four broad objectives ever since it was initiated:

• Regional Economic Integration,
• Reform and Liberalization
• Sustained Economic Growth
• Development of North-East India.

Since the early 1990s, India started focusing on economic cooperation with the East and Southeast Asian countries. This geographical shift in focus area was primarily due to the success of the East Asian economies, especially the Asian Tigers. The Look East Policy had two phases, the first being on the trade and investment process, and the second phase expanded the geographical focus to Australia and East Asia.

The Look East Policy also focuses on sub-regional cooperation:

• BIMSTEC – 

It was launched on the 6th of June 1997. Being a sector-driven grouping, cooperation within BIMSTEC had initially focused on six sectors in 1997 (trade, technology, energy, transport, tourism, and fisheries) and expanded in 2008 to incorporate agriculture, public health, poverty alleviation, counter-terrorism, environment, culture, people-to-people contact, and climate change.

• Mekong Ganga Cooperation –

The Mekong-Ganga Cooperation (MGC) is an initiative by six countries – India and five ASEAN countries, namely, Cambodia, Lao PDR, Myanmar, Thailand, and Vietnam for cooperation in tourism, culture, education, as well as transport and communications. It is named after the Mekong River and River Ganga (both of which are civilizational rivers).

• Bangladesh-China-India-Myanmar Regional Economic Forum (BCIM)

Also known as the Kunming Initiative, the BCIM was formed in 1999 to promote trade and economic development in the sub-region stretching from southwest China to eastern India (‘Kunming to Kolkata’) via Myanmar, India’s northeast region (NER), and Bangladesh.

• Free Trade Area (India-ASEAN)

It was signed in October 2003. Economic co-operation activities under the AIFTA are now being undertaken on agriculture, fisheries, and forestry; services; mining and energy; science and technology; transport and infrastructure; manufacturing; human resource development; and other sectors such as handicrafts, small and medium enterprises (SMEs) and intellectual property rights.

Apart from the above, the Look East Policy has enabled India to become a sectoral dialogue partner with ASEAN in 1992. India is also a member of the ARF (ASEAN Regional Forum) since 1996. Other Projects that have boosted India’s Look East Policy are the Trans Asian Highway from Singapore to Istanbul (via India), Trans Asian Railway from Delhi to Hanoi (Vietnam), and a Trans-National Gas Pipeline between Myanmar, Bangladesh, and India.

Challenges to the Look East Policy-

Another important element of the Look East Policy was the development of India’s the North Eastern States. The North-East Indian Region shares its border with Myanmar and Bangladesh both being the gateway to South East Asia. However, certain challenges are faced by the “Look East Policy”, especially in the North East:

The state of Manipur in particular within the North-Eastern region is badly affected by the “Golden Triangle” where drug addiction is spreading like wildfire. the number of drug addicts has risen from just 600 in 1988 to 31,000 in 1996 and 40,000 in 2002. In recent years, the Chinese expansionist economy has drawn India’s neighbors into its economic arena. Myanmar’s trade with China has grown more rapidly than that with India. Trade Between Bangladesh and China is more than the trade between India and Bangladesh. This is a serious challenge faced by the Look East Policy.

The second Challenge facing the Look East Policy is that India has very limited success in handling ethno-nationalist movements such as the Bodo Front in upper Assam. Secondly, the northeast is also home to scores of ethnic rebellions.  Myanmar’s Rakhine State and Kachin State are battlegrounds for the Karen people and the Tatmadaw (Myanmar Military Forces). In such a situation the Indian Projects (such as the Kaladan Multi-Modal Project) may get stagnated or be destroyed.

The Third Challenge comes from the Siliguri Corridor in West Bengal. This place is also termed Chicken’s Neck. It joins the North Eastern Region to mainland India. The main problem that persists here is elements of LWE (Left Wing Extremism) and the Gorkhaland Rebel Movement towards the Sikkim and Darjeeling zones. Siliguri region is often faced with strikes and “bandhs”. The Naga Insurgency will also prove to be a hindrance in the projects as the former head hunters demand autonomy from the Indian mainland.

Support from Bangladesh is of extreme importance. As long as Bangladesh promotes friendly relations and encourages connectivity, the projects under the Look East Policy will be fulfilled and completed.

THE ACT EAST POLICY

The Act East Policy launched in November 2014, is considered to be an upgrade of the Look East Policy. It was unveiled by Hon’ble Prime Minister of India Shri Narendra Modi at the 12th ASEAN Summit in Myanmar. It was enforced by the NDA Government who came to power in the year 2014. The Act East Policy is focused on the 4C’s which are Culture, Commerce, Connectivity, and Capacity Building.

Initiatives under the Act East Policy-

• Agartala-Akhaura Rail Project – 

This will be the first rail link from the North Eastern Region to Bangladesh. This railway link will connect Gangasagar in Bangladesh to Nischintapur in India and from Nischintapur to Agartala Railway Station. The Ministry of Development of the North East will pay for a 5.47 km track on the Indian Side whereas the remaining rail track in Bangladesh will be financed by the Ministry of External Affairs. 

• Asian Trilateral Highway-

This Highway starts from India and goes to Thailand via Myanmar. This will connect Moreh (India) to Bagan (Myanmar) and Mae Sot (Thailand). This project will boost trade and commerce in the India ASEAN Free Trade Area. This highway is 3660kms long and recently, Bangladesh has expressed its interest in the project.

• Kaladan Multi-Modal Transport Project-

This project connects Sittwe Port in Myanmar to India’s Myanmar Border. This has been created to ensure a multi-modal platform for cargo shipments from the eastern ports to Myanmar and the Northeastern parts of the country through Myanmar. It shall open sea routes and promote Economic Development in the North Eastern States. The project will reduce the need to transport from the volatile narrow Siliguri Corridor (Chicken’s Neck).

• Regional Comprehensive Economic Partnership Program (RCEP)-

It is a free trade agreement between 10 members of ASEAN and five FTA partners (Australia, New Zealand, China, Japan, and South Korea). Although India is an FTA partner of ASEAN it withdrew from the RCEP in 2019 stating that it would negatively impact Indian citizens

Challenges to Act East Policy –

The first challenge to the Act East Policy comes from religion. Most of the ASEAN countries practice Islam, Buddhism, and Christianity. Due to “Hindu Majoritarianism” the civil society in Indonesia, Singapore, and Malaysia have been affected. Secondly, due to inter-religious tensions, the Indian “Buddhist Diplomacy” has failed to garner support

The third challenge comes from the Covid-19. India had suffered a lot and was the worst hit during the pandemic. In Contrast, China being the epicenter of the Covid-19 pandemic handled the situation very effectively. There are instances of pro-Chinese sentiment among the Chinese communities in the ASEAN Region.

WHY IS THE ACT EAST POLICY MORE EFFECTIVE THAN THE LOOK EAST POLICY? 

 Economic Aspect

The Act East Policy was launched at a time when India’s economy was much better than that of the Look East Policy in 1991. The Act East Policy had a much greater focus on defense cooperation whereas this was the lacking factor in the Look East Policy. Also, the development of the North Eastern Region of India was the heavy focus of the Act East Policy. Under the Act East Policy, North East is considered as a gateway to Southeast Asian Countries. In the Look, East Policy North East India was in focus but efforts were minimal when compared to the Act East Policy.

Geopolitical Aspect

The Act East had a much strategical concept. India had formed relations not just with South East Asia but towards countries like South Korea and Japan who funded these infrastructural projects. Moreover, this policy was comparatively benevolent geopolitically for India. There was a greater focus on the Quadrilateral Security Dialogue (QUAD) Nations like Australia, Japan, the USA, and India herself. Relationships and strategic partnerships were forged with the Philippines, Malaysia, and Vietnam to check the dominance of China. The dominance of China was countered at two oceans: South China Seas and the Indian Ocean.

Cultural Aspect

When examined from the lenses of Soft Power diplomacy, The Act East Policy gave more importance to cultural, religious, linguistic exchanges. For example, the civilizational and cultural links date back several thousand years (from prehistoric times) Indian Merchants brought Hinduism and Buddhism to the region. Hindu Kingdoms were found in Sumatra, Bali, and the Philippines. The Hindu Temple Angkor Wat in Cambodia, Barabudar temple in Java bear the testimony. 

The focus of the Look East Policy was only limited to that of trade and investment. Whereas the Act East Policy is focused not only just economic cooperation but also had a security dimension. The Look East Policy had developed relations only with the Southeast Asia Countries. The Act East Policy also gave attention to the East Asian Countries as well.

Investment Aspect

Under the Act East Policy, countries like South Korea and Japan had made various investments in India. For example, The Japanese investments in India include The Bullet Train, pharmaceuticals, telecom, smart cities, chemicals, etc. Japan and India have institutionalized 2+2 Ministerial Dialogue. Japan has also agreed to support Indian initiatives such as Digital India, Skill India, and Make in India. South Korea on the other hand has a huge presence in India particularly in the automobile sector (Hyundai) and in the electronics sector (Samsung and LG) as well. South Korean FDI to India has steadily increased in recent years, reaching US$ 5.71 billion by the end of 2018.

The Look East and Act East Policy have benefitted and improved the stance and position of India externally. India under both policies has achieved considerable success be it geopolitically, internally, externally. However, each policy comes with its pros and cons. This needs to be addressed before formulating and implementing any new venture or step. Despite the best motives and intentions of the Look and Act East Policy, India’s image and standing have suffered. Therefore, Indian Diplomacy and diplomats must take a fresh look and modify the existing policies and make them tailor-made to suit India’s interests domestically as well as internationally.

The Act East Policy is much more effective and comprehensive than the Look East Policy. This does not mean that the Look East Policy should be neglected. Behind the success and foundational base of the Act East Policy was the Look East Policy.

_____________________________________________________________