Act East Policy, Countries, History, Objectives, Projects

The Act East Policy is India's comprehensive approach towards strengthening economic, strategic, cultural and connectivity-based relations with Southeast Asia and the wider Indo-Pacific region. Introduced as an evolution of the Look East Policy, it places greater emphasis on commerce, culture and connectivity while giving increasing importance to maritime security, defence cooperation, regional institutions and the development of India's Eastern/Northeastern states.

The Act East Policy seeks to transform India's eastern neighbourhood into a zone of greater economic integration and strategic cooperation. The Association of Southeast Asian Nations (ASEAN) occupies a central position in this approach, alongside India's engagement with countries such as Japan, South Korea, Australia and the Pacific Island states.

Act East Policy History

The Act East Policy builds on India-Southeast Asia relations and represents a shift from earlier limited engagement towards deeper economic, strategic, cultural and connectivity-based cooperation with the region.

• The evolution from the Look East Policy to the Act East Policy marked a shift towards deeper economic, strategic, cultural and connectivity-oriented engagement with the region.
• India launched the Look East Policy in the early 1990s as part of an effort to strengthen economic and strategic relations with Southeast Asia and use India's North East as a gateway towards the region.
• The policy was subsequently upgraded into the Act East Policy by the new government formed in 2014. The shift reflected a move from primarily looking towards the region to undertaking more active engagement through connectivity, commerce, culture, defence and strategic cooperation.
• The policy also placed greater importance on India's North East because of its geographical position bordering Bangladesh, Bhutan, China, and Myanmar.

Act East Policy Objectives

The Act East Policy aims to transform India's historical and geographical links with Southeast Asia into deeper contemporary partnerships. Its major objectives include:

• Strengthening Economic Relations: India seeks to expand trade, investment and business relations with ASEAN and other Indo-Pacific economies.
• Improving Regional Connectivity: The policy places strong emphasis on land, maritime and air connectivity between India, its Northeast and Southeast Asia.
• Developing India's North East: The North Eastern states are intended to become a gateway connecting India with Myanmar and the wider Southeast Asian region.
• Deepening ASEAN Engagement: India seeks to strengthen ASEAN's central role and expand cooperation across economic, political, cultural and security domains.
• Enhancing Maritime Security: India aims to cooperate with regional partners on maritime domain awareness, coastal surveillance, hydrography, search and rescue and protection of sea lanes.
• Promoting Cultural and People-to-People Relations: Historical and civilisational links are used as a foundation for greater cooperation in education, tourism, culture, youth exchanges and scholarships.
• Supporting a Rules-Based Indo-Pacific: India advocates freedom of navigation, respect for international law, peaceful resolution of disputes and an inclusive regional order.
• Expanding Strategic Partnerships: The policy has increasingly incorporated defence and strategic cooperation with ASEAN members as well as countries such as Japan, Australia and South Korea.

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Act East Policy Pillars

The MEA source identifies the Four Cs – Commerce, Culture, Connectivity and Capacity Building as the pillars of India's Act East Policy.

• Commerce: Economic engagement forms an important component of India's relations with ASEAN. Trade, investment, manufacturing, MSMEs and regional value chains are central to this pillar.
• Culture: India's ancient civilisational links with Southeast Asia provide a strong foundation for cultural diplomacy. Cooperation covers heritage, education, tourism, traditional knowledge and people-to-people contacts.
• Connectivity: Physical, maritime, air, digital and economic connectivity are essential for translating India's geographical proximity to Southeast Asia into greater economic integration.
• Capacity Building: India helps Southeast Asia enhance its capability through training, technical support, education, skill development, institutional collaboration, and technological alliances. These programmes foster long-term, mutually beneficial regional cooperation while enhancing the capacities of partner nations.

Act East Policy Projects

Connectivity is one of the most important practical components of the Act East Policy. Several major initiatives have been associated with India's effort to connect its Northeast and mainland India with Southeast Asia.

• India-Myanmar-Thailand Trilateral Highway: The India-Myanmar-Thailand Trilateral Highway is a flagship connectivity initiative designed to connect India with Thailand through Myanmar.
  • The proposed route begins around Moreh on the India-Myanmar border, passes through Myanmar and reaches Mae Sot on the Myanmar-Thailand border.
  • The broader vision involves connecting the route further with Laos, Cambodia and Vietnam.
  • The project is significant because improved road connectivity can facilitate trade, tourism, movement of people and economic activity between India and Southeast Asia.
• Kaladan Multi-Modal Transit Transport Project: The Kaladan Multi-Modal Transit Transport Project is intended to provide a multimodal connectivity link between Kolkata and Sittwe in Myanmar, with onward connectivity to Mizoram through river and land routes.
  • It can provide an alternative connectivity route for India's North East and strengthen India's links with Myanmar.
• Railway Connectivity with Bangladesh: Rail links under the Act East Policy have strengthened India and Bangladesh relations.
  • The Agartala–Akhaura railway link, inaugurated on November 1, 2023, is an example of cross-border rail connectivity intended to improve movement between Tripura, Bangladesh and the wider Indian railway network while facilitating access to regional trade routes.
• Maritime Connectivity: India has explored stronger maritime links between its eastern coastline and ASEAN countries.
  • There is strong potential for connections involving ports in India, Myanmar, Thailand, Indonesia, Malaysia and Singapore.
  • There is also a proposal to connect the Dawei Port in Myanmar and Chennai and to explore opportunities for cruise tourism and roll-on/roll-off shipping.
• Air Connectivity with ASEAN and BBIN Countries: State and federal plans target making Guwahati the primary gateway, proposing direct air links from the Northeast to major capitals in ASEAN and BBIN nations.
• Digital Connectivity through Bangladesh: Digital connectivity is another emerging dimension of India's Act East engagement.
  • Possibility of using Bangladesh's Cox's Bazar submarine cable landing station to improve high-speed connectivity to India's Northeast.
  • Better digital infrastructure could support IT-enabled services, e-commerce and technology-driven businesses in the region.

Act East Policy vs Look East Policy Difference

Act East Policy Challenges

India's Act East Policy faces major challenges from severe delays in cross-border infrastructure projects, political instability and conflict in neighbouring regions, and an increasing trade deficit with ASEAN nations.

• Trade Imbalance with ASEAN: A rising trade deficit hampers economic reciprocity and questions the efficacy of India’s trade diplomacy.
  • Example: According to a NITI Aayog Trade Watch Quarterly report, India's trade deficit with its Free Trade Agreement (FTA) partner countries rose by 59.2% during the April–June quarter (Q1 FY26) of 2025 compared to the previous year. This widening gap was largely driven by a contraction in exports to ASEAN, India's largest FTA export market.
• Infrastructure Delays: Project delays weaken connectivity and reduce India’s strategic credibility in the East, Southeast and FIPIC region.
  • India-Myanmar-Thailand (IMT) Trilateral Highway faces delays because of Myanmar's prolonged political instability, armed conflict and security challenges along parts of the proposed route.
• Geopolitical Instability and Great Power Rivalries: The return of great power rivalries, particularly between the United States and China, has altered the regional strategic environment.
  • ASEAN’s once advantageous position between the two powers has now become a space of tension and competition.
• Regional Political Instability: Political transitions in neighbours disrupt projects and diplomatic engagement.
  • Bangladesh’s political transition delayed High Impact Community Development Projects (HICDPs).
• Border Security & Refugee Influx: Refugee spillovers strain Northeast stability and affect land connectivity.
  • Cross-border refugee movements following Myanmar's conflict have added humanitarian and security pressures in India's Northeast, particularly Manipur and Mizoram.
• China's Economic and Strategic Domination: India's support for a rules-based maritime order and strategic space are threatened by China's military expansion and grey-zone operations in the South China Sea.
  • China's PLA Navy presence at Ream Naval Base, Cambodia, in the Gulf of Thailand near the Malacca Strait.

Act East Policy Way Forward

To make the Act East Policy more effective, India needs to increase its infrastructure investment in the region and focus on future opportunities such as increasing defence exports. Other measures which can be taken also include,

• Trade: Expedite the review of the ASEAN Trade in Goods Agreement to address tariff asymmetries and curb the rerouting of Chinese goods through ASEAN countries.
• Infrastructure: Ensure timely completion of key connectivity projects to strengthen regional linkages.
• Multilateral Engagement: Enhance strategic coordination with regional powers such as Japan, Australia, and Vietnam for a stable Indo-Pacific region and resilient supply chains of semiconductors, GPUs, AI accelerators and critical minerals.
• Cultural diplomacy: Through Buddhist cultural ties, especially with Thailand, Myanmar, and Vietnam, promote shared heritage.
• Defence Exports: Expand defence-industrial cooperation and increase exports of indigenous defence technology such as anti-ship and coastal defence missiles (Naval Anti-Ship Missile – SR), air defence systems (Akash), maritime patrol vessels, and troop protection gear (ballistic helmets & body armour) to ASEAN and other East Asian and Pacific nations.
• Climate Change Cooperation: Strengthen collaboration on renewable energy, disaster-risk reduction, and climate adaptation through initiatives such as the International Solar Alliance and regional blue-economy partnerships.
• Critical Minerals Partnership: Strengthen critical mineral partnerships with Indonesia (nickel), Vietnam (rare earths), and Myanmar (rare earths) to secure resilient supply chains for India's green and digital transition.
• Disaster Preparedness: Promote a regional tsunami-ready initiative with Indonesia and Thailand, supported by joint HADR exercises and early-warning tsunami systems.

Act East Policy UPSC PYQs

Q1. Evaluate the economic and strategic dimensions of India’s Look East Policy in the context of the post-Cold War international scenario. (UPSC Mains 2016)

Q2. Which of the following connectivity projects is/are a part of cooperation between India and the ASEAN member countries? (UPSC Prelims 2026)

1. Kaladan Multi-Modal Transit Transport Project 
2. IMT Trilateral Highway 
3. Agartala-Akhaura Rail Line

Select the answer using the code given below: 

a) 1 and 2 

b) 2 and 3 

c) 1 and 3 

d) 2 only

Ans: (a)

Q3. With reference to India's projects on connectivity, consider the following Statements: (UPSC Prelims 2023)

1. East-West Corridor under Golden Quadrilateral Project connects Dibrugarh and Surat.
2. The Trilateral Highway connects Moreh in Manipur and Chiang Mai in Thailand via Myanmar.
3. Bangladesh - China - India - Myanmar Economic Corridor connects Varanasi in Uttar Pradesh with Kunming in China.

How many of the above statements are correct?

a) Only one

b) Only two

c) All three

d) None

Ans: (d)