Look East to Act East — Policy Evolution

India's engagement with Southeast and East Asia has evolved over three decades from a reactive foreign policy stance to a proactive strategic doctrine.

Phase Name Year Key Features
Phase 1 Look East Policy 1992 (P.V. Narasimha Rao) Economic integration with ASEAN; dialogue partner status; trade and investment focus
Phase 2 Look East — Deeper 2000s Expanded to East Asia (Japan, South Korea, Australia); FTA negotiations; maritime dimension added
Phase 3 Act East Policy 2014 (Narendra Modi, East Asia Summit, Nay Pyi Taw) More active, strategic, and defence-oriented; Northeast India as gateway; Indo-Pacific framing; people-to-people connectivity

Key distinctions between Look East and Act East:

  • Look East was primarily economic; Act East adds security, culture, and connectivity dimensions
  • Act East explicitly includes Northeast India as a bridge to Southeast Asia
  • Act East coincides with India's emerging Indo-Pacific strategy and Quad membership
  • Act East recognises ASEAN's centrality in the regional architecture

ASEAN — Overview

Feature Details
Full name Association of Southeast Asian Nations
Founded 8 August 1967 (Bangkok Declaration)
Members 10 — Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam
Headquarters Jakarta, Indonesia
ASEAN Charter Adopted October 2007 (came into force December 2008) — gave ASEAN legal personality
ASEAN Centrality The principle that ASEAN must remain the core of Indo-Pacific regional architecture; central to all ASEAN-led mechanisms (ADMM+, ARF, EAS)
Decision-making Consensus-based; non-interference in internal affairs
GDP ~$3.6 trillion combined (one of world's largest economies)

ASEAN-led mechanisms where India participates:

  • East Asia Summit (EAS) — India a founding member, 2005
  • ASEAN Regional Forum (ARF)
  • ASEAN Defence Ministers' Meeting Plus (ADMM+)
  • ASEAN+1 meetings with India

India-ASEAN Relations — Milestones

Year Milestone
1992 India becomes ASEAN Dialogue Partner
1995 India joins ASEAN Regional Forum (ARF)
2002 India-ASEAN Summit-level engagement established
2005 India joins East Asia Summit (founding member)
2009 ASEAN-India Trade in Goods Agreement (AITIGA) signed
2010 AITIGA comes into force
2012 India-ASEAN Strategic Partnership
2022 (November) India-ASEAN Comprehensive Strategic Partnership (CSP) — highest tier
2022 30th anniversary of India-ASEAN Dialogue Partnership

The Comprehensive Strategic Partnership (CSP), announced at the ASEAN-India Summit in Phnom Penh in November 2022, is the highest designation in the ASEAN relationship framework. India joined the US, China, and Australia as CSP-level partners.


ASEAN-India Trade in Goods Agreement (AITIGA)

The ASEAN-India Free Trade Agreement in Goods was signed in August 2009 and came into force in January 2010 (India-Singapore, then phased for others).

Trade Data

Year India Exports to ASEAN India Imports from ASEAN Trade Deficit
FY 2010–11 (base) ~$26.6 billion ~$30.6 billion ~$4 billion
FY 2022–23 ~$44 billion ~$87.5 billion ~$43.57 billion
FY 2024–25 ~$38.96 billion ~$84.16 billion ~$45.2 billion

India's trade deficit with ASEAN widened nearly 10-fold from AITIGA's implementation, leading to significant criticism.

Key Indian Concerns with AITIGA

  • Rules of Origin violations: Goods (especially Chinese goods) re-routed through ASEAN countries to access India's lower FTA tariffs
  • Tariff asymmetry: India gave deeper cuts in more sectors than ASEAN nations reciprocated
  • Non-tariff barriers: ASEAN countries imposed NTBs on Indian agricultural products
  • Trade deficit: From ~$4 billion to ~$45 billion in 15 years

AITIGA Review (2024–2025)

  • Formal review process began in 2024 via a Joint Committee
  • Ten rounds of negotiations completed as of late 2025
  • India seeks: stricter rules of origin, product-specific rules (PSRs), enhanced market access, NTB reduction
  • Target: conclude review by end of 2025 / early 2026

RCEP — India's Exit (2019)

The Regional Comprehensive Economic Partnership (RCEP) is a 15-nation mega free trade agreement signed in November 2020, covering ASEAN-10 + China, Japan, South Korea, Australia, New Zealand.

India walked out of RCEP negotiations on 4 November 2019 at the Bangkok Summit.

Reasons for India's Exit

Concern Details
Trade deficit fears Fear of Chinese goods flooding India via ASEAN route; India already had large deficits with China and ASEAN
Agriculture and dairy New Zealand dairy exports would devastate Indian dairy farmers; Australian agricultural exports a threat
Ratchet clause A one-way liberalisation trap — once tariffs are lowered, they cannot be raised
Base year RCEP used 2014 as base year; India wanted 2019; the difference meant deeper cuts for India
Services market access India wanted liberal mode 4 (movement of professionals) access — denied
Auto-trigger mechanism India sought safeguard clauses if imports surge past thresholds — not accepted

Current RCEP status: RCEP came into force on 1 January 2022 for 12 of 15 countries. India remains outside RCEP but has been left open an invitation to rejoin. India has not rejoined as of 2026.


Indo-Pacific Economic Framework (IPEF)

Launched in May 2022 by the US, IPEF has 14 members including India. India joined three of four pillars but opted out of the Trade Pillar (Pillar 1) citing sensitivity of market access commitments.

Pillar Subject India
Pillar 1 — Trade Market access, digital trade, labour, environment Not participating
Pillar 2 — Supply Chains Resilient supply chains Participating
Pillar 3 — Clean Economy Clean energy, decarbonisation Participating
Pillar 4 — Fair Economy Anti-corruption, tax Participating

India-Japan Relations

Feature Details
Partnership status Special Strategic and Global Partnership (upgraded September 2014 under PM Modi and PM Abe)
ODA Japan is India's largest bilateral ODA donor — cumulative commitments exceeding ¥5 trillion; financing DMIC, freight corridors, metro systems, Northeast connectivity
Defence cooperation 2+2 Dialogue (since 2019); ACSA (Acquisition and Cross-Servicing Agreement, 2020); GSOMIA-equivalent; joint exercises Dharma Guardian (Army), JIMEX (Navy), Sheen Yudh (Air Force)
Technology Joint production of US-2 amphibious aircraft; Bullet Train (Mumbai-Ahmedabad) financed by Japan ODA
Quad India-Japan both founding Quad members; close alignment on Indo-Pacific maritime security
Nuclear Civil nuclear cooperation agreement signed 2016 (India-Japan)
Semiconductors Japan is key partner in India Semiconductor Mission (2021)

"Special" — reflects depth of trust and absence of historical conflict. "Strategic" — defence, maritime, nuclear cooperation. "Global" — UNSC reform, climate, Indo-Pacific coordination.


India-South Korea Relations

Feature Details
Partnership status Special Strategic Partnership (2015)
CEPA Comprehensive Economic Partnership Agreement (CEPA) signed 2009, came into force 1 January 2010
Trade ~$25 billion bilateral trade (2024)
Defence K9 Vajra self-propelled howitzers (Artillery modernisation); submarine technology cooperation; Samsung, LG, Hyundai investments in India
Korean investments Hyundai, Kia, Samsung, LG — significant manufacturing investments in India
CEPA review CEPA modernisation negotiations ongoing; India seeks enhanced services market access

India-Vietnam Relations

Feature Details
Partnership Comprehensive Strategic Partnership (upgraded October 2016)
Defence India extended $500 million Line of Credit for defence procurement; BrahMos missiles under discussion; joint naval patrols in South China Sea
South China Sea Common interest in freedom of navigation; Vietnam supports India's UNSC bid
Trade ~$15 billion bilateral trade (2024)
Culture Vietnam's Cham community has historical Hindu ties; Mỹ Sơn temple complex (UNESCO)

Vietnam is India's most important strategic partner within ASEAN, particularly given shared maritime security concerns with China.


India-Australia Relations

Feature Details
Partnership Comprehensive Strategic Partnership (June 2020)
ECTA Economic Cooperation and Trade Agreement (ECTA) signed 2 April 2022; India's first bilateral FTA with a developed country in over a decade
Critical minerals Australia-India Critical Minerals Investment Partnership; lithium, cobalt, rare earths
Quad Australia and India both in the Quad framework
Defence AUSINDEX naval exercises; +1 format; MLSA (Mutual Logistics Support Agreement, 2020)

Mekong-Ganga Cooperation (MGC)

Feature Details
Launched 2000 (Vientiane, Laos)
Members 6 — India + 5 Mekong countries (Cambodia, Laos, Myanmar, Thailand, Vietnam)
Focus areas Tourism, culture, education, transport and communications
Significance India's direct engagement with the Mekong sub-region; cultural-civilisational links (Buddhism, Ramayana)

BIMSTEC

Feature Details
Full name Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation
Members 7 — Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, Thailand
Founded 1997 (Bangkok Declaration)
Charter Came into force May 2024 (ratified at the 5th BIMSTEC Summit, Colombo 2022)
India's push As an alternative to the deadlocked SAARC; circumvents Pakistan problem
6th Summit 2025 — India hosted the 2nd BIMSTEC Foreign Ministers' Retreat in July 2024
Significance Connects South Asia and Southeast Asia; Bay of Bengal maritime space

Previous Year Questions (PYQs)

Prelims

  1. With reference to BIMSTEC, which of the following statements is correct? (a) It is a sub-regional grouping for Bay of Bengal countries (b) It has 10 member states (c) Its headquarters is in Dhaka (d) It was founded in 2000 (UPSC CSP 2018 — adapted)

  2. India signed its Comprehensive Economic Partnership Agreement (CEPA) with which of the following countries? (a) South Korea and UAE (b) ASEAN and Japan (c) Australia and China (d) Vietnam and Thailand (UPSC CSP 2022 — adapted)

  3. Which of the following was the first region India adopted its "Look East Policy" towards? (a) Central Asia (b) East Africa (c) Southeast Asia (ASEAN) (d) Japan and South Korea (UPSC CSP 2015 — adapted)

  4. The Regional Comprehensive Economic Partnership (RCEP) came into force in January 2022. India is not a member. Which of the following was NOT a reason for India's decision to exit RCEP negotiations in 2019? (a) Concerns about the trade deficit with China widening (b) Lack of safeguard mechanisms against import surges (c) Failure to get adequate services market access (d) India's desire to join the Trans-Pacific Partnership instead (UPSC CSP 2023 — adapted)

Mains

  1. "India's Act East Policy is more than a rebranding of the Look East Policy — it reflects a fundamental shift in India's strategic calculus." Critically examine. (UPSC GS2 2016)

  2. ASEAN is the cornerstone of India's Act East Policy. Examine India's engagement with ASEAN and the challenges in deepening the relationship, particularly in the context of trade imbalances. (UPSC GS2 2020)

  3. What is the significance of the Mekong-Ganga Cooperation (MGC) for India? How does it complement India's ASEAN engagement? (UPSC GS2 2019)


Exam Strategy

For Prelims:

  • ASEAN: 10 members; founded 1967; headquarters Jakarta
  • India-ASEAN: Dialogue Partner 1992 → Summit-level 2002 → Strategic Partner 2012 → Comprehensive Strategic Partnership 2022
  • AITIGA: signed 2009, came into force 2010
  • RCEP: India exited November 2019; RCEP entered force January 2022
  • BIMSTEC: 7 members (India, Bangladesh, Sri Lanka, Nepal, Bhutan, Myanmar, Thailand)
  • India-Japan: Special Strategic and Global Partnership (2014)
  • India-South Korea: CEPA from 2010

For Mains:

  • The Look East → Act East evolution is a reliable essay entry point; emphasise the qualitative shift from economics to security
  • India's RCEP exit shows the tension between trade liberalisation and protecting domestic industry (dairy, manufacturing, agriculture)
  • ASEAN Centrality: India accepts ASEAN as the fulcrum of Indo-Pacific architecture — this is important for contrast with US-led groupings
  • BIMSTEC vs SAARC: India's preference for BIMSTEC reflects Pakistan's blocking role in SAARC
  • Trade deficit data (AITIGA): imports surged 186% vs exports only 65% — powerful statistic for analysis
  • Link IPEF partial participation to India's consistent stance on protecting policy space in trade negotiations