Indias act east policy and growing trade relations with South East Asia
PankajSrivastava
India's Act East Policy has been a significant shift in its foreign policy towards Southeast Asia. This policy aims to strengthen India's economic and strategic relations with ASEAN member countries, Japan, and South Korea. The policy, which was launched in 2014, is an extension of India's Look East Policy, which was initiated in the early 1990s.
The Act East Policy is a reflection of India's growing economic and strategic interests in the Asia-Pacific region. The policy aims to promote economic cooperation, cultural ties, and people-to-people contacts between India and Southeast Asia. It also seeks to enhance India's strategic influence in the region and strengthen its security cooperation with ASEAN member countries.
Trade is a vital component of India's Act East Policy. The policy seeks to increase India's trade and investment relations with Southeast Asian countries. India's trade with ASEAN has grown significantly over the past decade, increasing from $21 billion in 2005 to $96 billion in 2018. The ASEAN region is India's fourth-largest trading partner.
India's trade with Southeast Asian countries is diverse, covering a wide range of sectors, including agriculture, textiles, electronics, and automotive. India's exports to the ASEAN region include pharmaceuticals, engineering goods, and chemicals. Imports from ASEAN countries to India include machinery, electronic goods, and crude oil.
India has also signed several free trade agreements (FTAs) with ASEAN countries to boost its trade relations in the region. The India-ASEAN Free Trade Area (FTA) is one such agreement that came into effect in 2010. The FTA aims to reduce tariffs and trade barriers between India and ASEAN member countries. The agreement has helped to increase India's exports to ASEAN countries, which have grown at an annual rate of 14% since 2010.
India's trade relations with Southeast Asia have also been strengthened by the signing of the Regional Comprehensive Economic Partnership (RCEP) agreement. The RCEP is a free trade agreement between ASEAN member countries and six other countries, including India, China, Japan, South Korea, Australia, and New Zealand. The agreement, which was signed in November 2020, aims to create a free trade area covering nearly one-third of the world's population and GDP.
Apart from trade, India's Act East Policy also focuses on enhancing its strategic relations with Southeast Asian countries. India has been conducting joint military exercises with ASEAN member countries to promote cooperation and interoperability between their armed forces. India has also been providing assistance to Southeast Asian countries in capacity building, disaster relief, and counter-terrorism.
Cultural diplomacy is another important aspect of India's Act East Policy. India has been promoting its soft power in Southeast Asia through the establishment of cultural centers, Bollywood films, and Indian cuisine. The Indian Council for Cultural Relations (ICCR) has set up several cultural centers in Southeast Asian countries to promote Indian culture and language. Bollywood films have also been popular in Southeast Asia, and Indian cuisine has been gaining popularity in the region.
India's Act East Policy has been successful in strengthening India's economic and strategic relations with Southeast Asian countries. The policy has helped to increase India's trade and investment in the region and enhance its strategic influence. India's trade relations with ASEAN member countries have grown significantly, and the signing of the RCEP agreement is expected to boost bilateral trade further. India's cultural diplomacy has also been successful in promoting its soft power in the region. The Act East Policy is a reflection of India's growing role in the Asia-Pacific region and its commitment to promoting peace and stability in the region.
TAGS : asean, economic , foreign policy, indias act east policy
