India and South Asia - 2 | PSIR Optional for UPSC PDF Download

India’s Act East Policy

• The Act East policy was announced by the Indian Prime Minister in 2014 as a proactive approach to engaging with East and Southeast Asia.
• The roots of this policy can be traced back to the Look East policy of the early 1990s, which aimed to strengthen ties with the economically dynamic East Asian region.
• The Look East policy was initiated due to various factors, including economic,strategic, and political considerations. After the Cold War and the disintegration of the Soviet Union in 1991, India faced economic challenges, including a lack of foreign exchange.
• To address these challenges, India embarked on economic liberalization under Finance Minister Dr. Manmohan Singh. This shift was necessary as the previous licence-permit raj model was no longer viable.
• During this period, many developing countries were liberalizing their import-export regimes and opening their economies to foreign investment, resulting in higher economic growth rates. India, under Prime Minister P.V. Narasimha Rao, looked towards the fast-growing economies of East and Southeast Asia.
• In the early 1990s, East Asia had emerged as the world’s most dynamic economic region. The newly liberalized Indian economy needed to engage with this region for mutual benefit.
• Over time, the Look East policy evolved into a multidimensional approach encompassing economic,political, and defence/strategic aspects. It became one of India’s most successful foreign policy initiatives.
• The transition to the Act East policy reflected India’s intent to deepen and broaden its engagement with East Asia, recognizing the region as the new global centre of gravity.
• The Act East policy aims to strengthen India’s role in regional affairs, acknowledging the growing stakes and interests in East Asia due to its evolving economic and security landscape.

Background

Historical Context of India's Relations with East Asia

• India has been engaging with East Asia for over 2500 years, long before the formal Act East policy.
• Countries like Indonesia, Singapore, and Cambodia have names derived from India, reflecting India's historical influence.
• Indian, Chinese, and Japanese traders, along with local merchants, interacted in Southeast Asia, contributing to a rich exchange of culture, art, architecture, language, literature, and spirituality.

Impact of Colonialism and Post-Colonial Efforts

• Colonialism disrupted the vibrant ties between India and East Asia.
• Post-colonial India made concerted efforts to re-establish and strengthen these links.
• Key initiatives included the Asian Relations Conference in 1947 and support for Indonesia's independence in 1949.

Active Role in East Asian Affairs

• India played a significant role in East Asian affairs, including peacekeeping in Korea in the 1950s and chairing the International Control Commission in Vietnam.
• India co-sponsored the Afro-Asian Conference in 1955 and supported Japan's reintegration into the global community after World War II.
• India was among the first to recognize the People's Republic of China in 1949.

Challenges and Shifts in Foreign Policy

• India's foreign policy faced challenges during the Cold War, with the U.S. leading Southeast Asia into alliances like SEATO.
• India's Non-aligned stance had limited appeal in this context.
• The Bandung Conference in 1955 marked a turning point, leading India to shift its focus away from East Asia.

Recognition of the Cambodian Government

• India recognized the Cambodian government installed by Vietnam in 1980 after the fall of the Pol Pot regime.
• By this time, a significant political and economic gap had developed between India and East Asia.

The ‘Look East’ Policy

Strengthening Ties with Southeast Asia

• ASEAN Engagement: India's partnership with ASEAN evolved from a Sectoral Dialogue Partner in 1992 to a full Dialogue Partner in 1996, joining the ASEAN Regional Forum (ARF) to address regional security.
• Regional Integration: India actively participated in regional multilateral mechanisms, enhancing its ties with Southeast Asia despite initial challenges.

From ‘Looking’ to Engaging East

Shift in Perceptions about India (2000-2014)

• By the early 2000s, perceptions about India shifted significantly due to two main reasons:
• Economic Growth: The Indian economy entered a phase of high growth, attracting global attention.
• Security Concerns in East Asia: Growing security concerns in East Asia, driven by political instability, territorial disputes, uncertainty about US security commitments, and the lack of a regional balance of power, contributed to this shift.
• ASEAN began to see India as a potential economic powerhouse and a country with significant opportunities. India's considerable military capability also positioned it as a stabilizing force in regional security.

Evolution of India's Foreign Policy (2000-2014)

• This period marked India's transition from the "Look East" policy to a more engaged approach towards East Asia, expanding beyond Southeast Asia and ASEAN to include the entire East Asian region.
• China became India's largest trading partner during this time. Notable transformations occurred in India-Japan relations and India-US relations, particularly in the context of East Asia.
• India developed a more robust and multidimensional policy with a multi-pronged approach. This new approach was characterized by three main facets:

Political Engagement

Two-Dimensional Approach to Political Engagement

• Linkages with Regional Multilateral Institutions:
• India focused on strengthening ties with regional multilateral institutions, particularly ASEAN.
• In 2002, India and ASEAN established regular Summit Meetings to facilitate interactions among top political leaders.
• India became a founding member of the East Asia Summit (EAS) in 2005 and joined the ASEAN Defence Ministers Meeting-Plus (ADMM-Plus) in 2010.
• Qualitative Upgrade of Bilateral Relations: India aimed to enhance bilateral relations with select countries, notably Singapore,Vietnam,Japan,Indonesia, and Myanmar.

Economic Links

India's Economic Links in the "Look East" Policy

• India's "Look East" policy was driven by economic imperatives, aiming to integrate with East Asian economic dynamism.
• Initially, the policy struggled to attract significant investments, with China and Southeast Asia being more attractive to investors.
• Post-2000, as countries recovered from the financial crisis and India experienced high growth rates, investor interest in India increased.
• The Framework Agreement on Comprehensive Economic Cooperation with ASEAN in 2003, covering trade in goods, services, and investments, boosted India-ASEAN trade.
• The Trade in Goods agreement became operational in 2010, aimed at removing tariffs on over 80% of traded products.
• Despite a global trade slowdown from 2015 to 2017, these agreements were expected to enhance India’s economic relations with ASEAN.
• Bilateral trade between India and ASEAN rose from about US$6 billion in 2000 to over $65 billion by 2016.
• Foreign Direct Investment(FDI) flows between India and ASEAN also increased significantly during this period.
• India signed Comprehensive Economic Partnership Agreements(CEPA) with countries like Japan, Singapore, South Korea, and Malaysia, reflecting its growing economic ties in the region.
• India participated in the Regional Comprehensive Economic Partnership(RCEP) talks, aimed at creating the world’s largest free trade region, although it eventually withdrew in 2019 over concerns about economic interests.
• RCEP, once finalized, would cover nearly 50% of the world’s population and over 40% of global GDP, highlighting the region's economic significance.
• East and Southeast Asia, with over $5 trillion in foreign exchange reserves and strong value chains, represent a dynamic region crucial for India’s economic future and integration.
• India has significantcatching upto do to fully benefit from these economic partnerships and the opportunities presented by RCEP.

Defence and Strategic Cooperation

Look East Policy: Defence and Security Interaction

• The defence and security aspects of India's 'Look East' policy have seen significant transformation, becoming more robust than economic or political dimensions.
• Activities include joint exercises,training,high-level visits,security dialogues,strategic partnerships, and occasional arms exports.
• In the 1980s, Southeast Asian countries were concerned about the Indian Navy's expansion and the strategic location of Port Blair in the Andamans, which could potentially control the Malacca Strait, a crucial global trade route.
• The end of the Cold War allowed India to rebuild defence links with Southeast Asian nations, starting with inviting senior naval officers for visits and gradually increasing the scale of joint exercises.
• India now conducts a variety of bilateral and multilateral naval exercises with East Asian countries and engages in joint patrolling with Indonesia and Thailand near the Malacca Strait.
• Multilateral exercises include the Malabar joint naval exercises involving India, the US, and Japan.
• India also provides training to foreign military personnel, such as Malaysian pilots and ground crew under a 1993 Memorandum of Understanding (MoU), and offers training in various military fields at prestigious Indian defence institutions.
• India holds numerous Security Dialogues and has forged Strategic Partnerships with countries like Japan, Indonesia, Malaysia, Vietnam, and Singapore.
• India has started exporting defence hardware to countries such as Myanmar and Vietnam.
• The growth of defence and security links reflects increasing security concerns in East Asia and India's rising role in contributing to regional peace and stability, as well as advancing its own interests.
• India's involvement is becoming increasingly significant in the emerging balance of power in East Asia.

Great Powers and the ‘Look East’ Policy

India's 'Look East' Policy: Adapting to Global Changes

• The 'Look East' policy aimed to strengthen political, economic, and defense ties with East Asia, influenced by significant global shifts.
• These shifts are reshaping the regional economic and security landscape, prompting India to align its interests with the dynamic East Asian region.
• China's Rise: The rapid rise of China as a major economic and military power is a key factor. China's assertive actions, particularly regarding territorial claims in the East China and South China Seas, have raised concerns among countries in the region.
• China's challenge to the status quo could lead to conflicts that might disrupt the region's economic progress.
• With the perceived decline of U.S. influence in the region, India is seen as a potential counterbalance to China, contributing to regional stability.
• This perception has led countries like ASEAN, Japan, and Australia to encourage greater Indian involvement in regional affairs.
• The success of the 'Look East' policy is attributed more to the significant changes in East Asia since the Cold War than to India's diplomatic efforts.
• Despite India's growing role, it does not necessarily mean confrontation with China. Historically, India and East Asia have maintained peaceful relations, with enough strategic space for both to thrive.
• However, the underlying tensions and suspicions between India and China influence India's engagement with East Asia.
• Countries like the U.S. and Japan have been urging India to deepen its involvement in East Asia.
• Bilateral statements often emphasize East Asian security and regional stability cooperation.
• India's participation in the 'Quad'—a security dialogue with Australia, Japan, and the U.S.—is part of this multilateral engagement.
• The 'Quad' aims to balance China's growing presence and promote a common security framework in the Indo-Pacific.
• Joint military exercises like 'Exercise Malabar' involving India, Japan, and the U.S. are part of this effort.
• The core idea of the 'Quad' is to maintain an 'open, prosperous, and inclusive Indo-Pacific.'

The ‘Act East’ Policy

• Act East policy represents India's intensified engagement with East Asia.
• It builds upon the earlier Look East policy.
• The policy aims to deepen and expand India's relations with this economically and strategically significant region.
• Reflects India's growing economic and strategic interests in East Asia.
• East Asia is emerging as a major driver of global economic development.
• Trade statistics show that trade with East Asia is growing faster than with other regions.
• The policy prioritizes economic relations and addresses weaknesses in this area.
• Aims to enhance India's involvement in regional economic affairs.
• Infrastructure investment commitments from Japan and China illustrate this focus.
• The policy emphasizes improving connectivity—physical, institutional, and people-to-people.
• Enhanced connectivity is crucial for strengthening bonds between India and East Asia.
• Engaging the Indian diaspora in East Asia is a key aspect of the policy.
• The diaspora serves as a vital link between India and East Asian countries.
• Recent efforts include personal engagement by Indian leaders to strengthen connections.
• Policy seeks to leverage India's soft power potential.
• Strengthening cultural and historical ties with East Asian nations is a goal.
• India's ancient cultural connections with Southeast Asia are being revitalized.
• These connections are seen as sources of soft power.
• The policy involves defense diplomacy to promote peace and stability.
• Recognizes India's role in a region marked by political fluidity and security concerns.
• The policy represents a comprehensive approach to enhancing India's economic, cultural, and strategic ties with East Asia.
• Addresses historical weaknesses and positions India as a key player in the region's future.
• India's 'Act East' policy signifies a deeper engagement with East Asia, building on the earlier 'Look East' initiative. It reflects India's growing economic and strategic interests in a region poised to be a major driver of global economic development.
• The policy aims to strengthen and expand India's relations with East Asia, addressing weaknesses in trade and connectivity. For instance, trade with East Asia has been growing faster than with other regions, highlighting its importance to India's economic future.
• Infrastructure investment commitments from countries like Japan and China, such as Japan's $35 billion investment in Indian infrastructure, underscore the policy's focus on enhancing economic ties. The 'Act East' policy prioritizes economic relations to rectify these weaknesses and boost India's involvement in regional economic affairs.
• Connectivity is a key focus, encompassing physical links like roads and ports, as well as institutional and people-to-people connections. Projects like the Tri-Nation Highway involving India, Myanmar, and Thailand aim to improve transport links across the region.
• Engaging the Indian diaspora in East Asia is vital for strengthening ties. The diaspora serves as a bridge between India and East Asian nations, with recent efforts to connect with overseas Indians through public gatherings and outreach.
• The policy also leverages India's historical and cultural ties with East Asia, using 'soft power' derived from ancient connections in areas like spirituality, language, and culture. For instance, India's influence through Buddhism and other cultural aspects remains strong in Southeast Asia.
• Defense diplomacy is another component, as India seeks to play a role in regional security and stability. Initiatives like providing a $600 million credit line to Vietnam for defense capabilities reflect this strategic focus.
• In summary, the 'Act East' policy represents a comprehensive strategy to enhance India's economic, cultural, and strategic ties with East Asia, addressing historical weaknesses and positioning India as a key player in the region's future.

‘Act East’ Policy and Regional Security

India's Act East Policy and Regional Security

• India's 'Act East' policy aims to strengthen relations with East Asian countries but also addresses evolving regional security concerns.
• The East Asian region, despite its economic growth, faces significant political uncertainty, making regional security crucial.
• India is viewed as a key player in enhancing regional security and establishing a balance of power.
• There is currently no effective regional security framework to maintain peace and stability amidst potential political unrest.
• The region is shifting towards a multipolar balance of power, with the decline of traditional powers like the US and the Soviet Union and the rise of new centers like China, India, and Japan.
• Regional multilateralism is growing in both economic and security areas, though security multilateralism has not met initial expectations.
• Platforms like the ASEAN Regional Forum (ARF) and ASEAN Defence Ministers Meeting-Plus are crucial for fostering confidence and transparency in security policies among East Asian nations.