Acting East!

 In the era when tariff wars and ongoing series of militant wars are taking over the global political and economic control and the growing importance and reliability emerging out of the 3rd world countries, India is emerging as a leader of the Global South. India is coming up as a key player in the South-East. (which still is a colonial nomenclature, yet!)

Indian economy is taking a leap with a growth rate of about 8.2% (real GDP growth) and emerging as the 4th largest economy across the world. With policies like Atmanirbhar Bharat and Digital India mission, India is strengthening its domestic market. In this context, when India comes up with a policy like Act East, it evokes a series of questions about what is East? and why Act East? 

Well, with an increased trade of $122 billion an year (2022-23) ASEAN alone with  an increase in investments and networks under the ambits of the policy, it acquires a prominent stage in Indian politico-economic sphere.

East for India is literally east of India! (with no colonial nomenclature or historical scars of discrimination.)

The East for India is the extended neighbourhood in East which includes the countries like Indonesia, Vietnam, Malaysia, Japan, Korea, Australia, Singapore and the grouping of ASEAN countries, which accounts for 11.4 trillion GDP and a major portion of the global population. 

A question still remains unanswered is that When the world looks 'west' and where every aspect of lifestyle is influenced by westernized ways and means, why look east?

There have been multiple socio-cultural, economic and strategic factors behind  India's acting east.

The Eastern countries traditionally referred to as the 3rd world countries had suffered from the historical wrongs of colonization and the associated exploitation. This not just politically stagnated them but also drained them economically.

With the consequent world war II, it added to the distrust of these countries. The following years saw the emergence of a bipolar world. The Cold war divided the world into two factions not just ideologically but also economically. This polarization impacted the developing and underdeveloping countries at a large scale. These countries not only were forced to align to one or the other group but it also impacted their trade patterns and impacted their economy.

These newly formed countries which had dropped out from the effects of the dark ages of colonization came together to form a movement or a united front which was named as 'NAM' or the Non-alignment Movement. The first PM of India. Pt. Jawaharlal Nehru, acted as one of the co-founders of the grouping and towered to be a leader of the grouping of these southeastern and African countries.

The later years of Independence saw opening up of the Indian economy through the LPG (Liberalisation, Privatisation and Globalisation) reforms of 1991.

The entry of private players into the market along with opening up of the market to globalization saw a dramatic change in socio-economic structure of India. With globalization, for India the trade with western countries seemed profitable and necessary. This time around India had something to offer the world and was also deliberate to acquire deficit resources like oil. This trade also lead India to acquire foreign exchange and to enter global competition.

Asian countries by then were relatively poor with deficit resources and unprofitable trade prospects. It was only after the emergence of 'Asian Tigers' i.e., South Korea, Taiwan, Hong Kong, Singapore and the big giants like Japan and China, that India was interested and keen to invest in and trade with the east.

It was in 1992 that the P.V. Narashiha Rao's government proposed the 'Look East Policy'

Apart from economic interests, the eastern countries share more in common with India. Right from the historical trauma of colonization to genetic closeness, Cultural roots extend across the Countries. The dynasties like Cholas had an influence far over the south-east. Moreover common festivals, tales and deities preside over this region.

It was due to this shared identity and socio-cultural, economic and strategic significance that India formulated the Look East Policy in 2015. This policy aims beyond mere economic cooperation to political conscience, strategic relations and cultural ties.

Act East policy goes a step beyond Look East towards eastern countries reducing the gaps and is based on the 4 pillars: Culture, Commerce, Connectivity & Capacity building.

The cultural roots within the region are not just enthrilling and divine but also significant. The Ramayana tales are performed across many Asian Countries and have undergone acculturation over the regions. This culture can be extended and utilized in terms of Cultural tourism.

Commerce is being enhanced through free Trade Agreements, Investments, Ambassies. The prospects of investments are improved by establishing a single window clearance system and chambers of commerce for exchange.

Connectivity through Air, Land and Waters is enhanced by building corridors and international highways and airports.

Human resource is shared and trained under capacity building through student exchange programs and training workshops. India has been training Nepalese and Bhutanese civil servants for many years.

Another major significance of the policy is the role of the North-east in the integration. North-east with its shared culture, boundaries not only provides an easy gateway to the east but it also develops and integrates to the mainstream in the process.

Over years of deliberate efforts India is growing closer to the east but there are factors that influence its presence like the growing dominance of China in the region. Also the slow progress of the key projects and inadequate infrastructure in north-east acts as major hurdles. Moreover, with the widening political instability in the south-east, the advantages are outweighed.

Yet, India which looks forward to emerge as a Vishwaguru can strengthen its position in South-east by the means of regional grouping, cultural collaboration and peace-stability negotiations.