India’s Act East Policy, initiated by Prime Minister Narendra Modi a decade ago, represents a strategic shift towards strengthening economic, strategic, and diplomatic ties with countries in Southeast Asia and the wider Indo-Pacific region. The Act East policy, which builds upon the earlier Look East Policy, is particularly significant given India’s rise as the third biggest economy in the world, its role as a net security provider in the Indian Ocean region – which is gradually expanding to the wider Indo-Pacific region, growing institutional engagements with the Association of Southeast Asian Nations (ASEAN), the United States (US) and its allies – Japan, Australia, and South Korea, the evolving geopolitics in the Indo-Pacific region especially concerning China's increasing economic and military prowess coupled with Beijing’s growing assertive postures.
The cumulative effect of these factors has not only opened up new vistas of politico-security cooperation between India and countries of the region but has also made New Delhi’s role natural and organic in the evolving Indo-Pacific politico-military and economic-institutional regional dynamics.
External affairs minister Jaishankar's official visit to Singapore, the Philippines, and Malaysia – three key ASEAN member countries - substantiates both these aspects. India's strategic outreach to enhance its ties with Southeast Asian countries and the warm reception Jaishankar received in these three capitals testifies that both India and its Southeast Asian partners have the appetite for stronger and more meaningful bilateral and institutional engagements. The visit was also timely in laying the groundwork for what is likely to be a series of mega-events to celebrate ten years of the launch of its Act East policy, post the 2024 general elections in India.
As India gears up to celebrate ten years of its Act East policy, it is important to underscore the key issues that can further play a role in binding India and its eastern partners together. Jaishankar’s visit touched upon some of these issues providing a peek into India’s Act East agenda in coming months and years.
India’s stronger and more proactive role in defence diplomacy and exports, and its role as a formidable and responsible maritime power are swiftly taking concrete shape. During Jaishankar’s visit, a notable emphasis on enhancing defence and maritime security cooperation across all three nations was witnessed. This included discussions on capacity-uilding, joint exercises, information exchange, and defence collaboration.
For instance, during the Philippines visit, talks focused on the Indian Coast Guard's capabilities and shared concerns regarding marine pollution, showcasing India's commitment to maritime cooperation. In a joint press conference with his counterpart Enrique Manalo, Jaishankar also expressed India’s support to the Philippines in upholding its sovereignty. The statement was loud and clear: India stands in solidarity with the Philippines on the South China Sea front, and supports Manila’s right to protect its territorial sovereignty and integrity against any unilateral incursion.
President Bongbong Marcos of the Philippines also has expressed his gratitude to the Indian government for its swift and decisive action in rescuing Filipino seafarers attacked by Houthi rebels in the Gulf of Aden earlier this month. India’s successful effort to fight Somali pirates in recent days is a testimony to its role as a net security provider in the Indian Ocean, which has the potential for further expansion and upgradation across the Indo-Pacific region. India’s supply of the BrahMos missile system to the Philippines is another sign of defence and security issues coming to the centre stage of its Act East policy.
The trade volume between India and ASEAN was $131.57 billion in the year 2022-2023, with a whopping trade imbalance of $ 43.57 billion in favour of ASEAN. Both India and ASEAN are mindful of this, and that is why the two sides have launched a series of deliberations to review the India-ASEAN Free Trade Agreement by 2025.
While a review of the FTA is important, it is equally important for India to create more trade and investment opportunities for its ASEAN partners. Meetings with business communities in Singapore and Malaysia focused on improving trade ties, easing business processes and ease of doing business, and exploring new sectors for investment such as semiconductors, infrastructure development, green energy, and food security. In Singapore and Malaysia, particular attention was given to a range of issue areas that could broaden trade and investment linkages between India and ASEAN which could eventually help narrow down the trade imbalance between the two sides.
There is a strong interest in advancing cooperation in new technologies and the digital economy. Meetings highlighted discussions on fintech, digital infrastructure, and embracing digital transformation across various sectors, leveraging India's expertise as a rapidly advancing digital economy. Partnering with Singapore and Malaysia can boost the Indian Semiconductor Mission (ISM) in a big way. As highlighted by Jaishankar, sunrise industries, greater talent sharing and mobility also offer great opportunities in this regard.
Discussions also centred on development partnerships, while covering areas such as health care, agriculture, education, and infrastructure development. This comprehensive approach reflects India's commitment to supporting bilateral development goals in collaboration with these nations. Often termed as the ‘pharmacy of the world’, India played a critical role in supplying Covid-19 vaccines as part of its Vaccine Maitri initiative. Cooperation in the health sector including medicines and medicinal equipment still has great untapped potential, waiting to be realised.
Recognising the importance of cultural and educational ties, engagements focused on enhancing people-to-people exchanges. These interactions aimed at fostering better understanding and cooperation between Indian and the Southeast Asian peoples. Jaishankar also described the Indian diaspora as a “living bridge” connecting India with other nations and emphasised its role in fostering closer ties between India and countries around the world.
Tourism promotion, including religious tourism, could be further strengthened through visa-free/visa-on-arrival entries for tourists from both sides and more systematic and direct air connectivity between Indian and Southeast Asian cities. The recent launch of the direct flight between Bengaluru and Bali (Indonesia) is a commendable step in that regard. So far, India-Southeast Asia connectivity has been largely centred on Singapore. This needs to change with more direct and cost-effective flights between India and other capitals and tourist places of the region. Considering the Indian diasporic linkages and tourist outflows, the heavy lifting should be done by the Indian aviation sector, which will open new business frontiers for them while accruing long-term gains for all.
Both India and ASEAN are strong believers in norms and principles in international relations. As India, ASEAN and its member States grapple with challenges posed by the ongoing Russia-Ukraine conflict, and Israel-Palestine crisis, it becomes all the more important for them to not take sides in the conflict and maintain a normative position favouring peaceful resolution of disputes in a just manner.
For India, the key priority has been to find ways to end the conflict in both the regions and elsewhere. ASEAN too is supportive of this. More importantly, for Indian foreign policymakers, keeping the balance right through a principled but practical multi-alignment approach has been the guiding principle.
A shared recognition of the interconnected nature of geopolitical challenges and the importance of collaboration for peace and stability keep India and its Southeast Asian partners on the same page when it comes to matters of regional and global importance.
India's proactive approach and commitment to its Act East Policy, showcases a clear vision for resilient and dynamic partnerships that address present challenges and future opportunities in the Indo-Pacific region.
This article is authored by Rahul Mishra, senior research fellow, German-Southeast Asian Center of Excellence for Public Policy and Good Governance, Thammasat University, Thailand, and associate professor, Centre for Indo-Pacific Studies, Jawaharlal Nehru University, New Delhi.
