Brief study about look East/ Act East policy. Political science.

1. LOOK EAST/ACT EAST
Name: Daram Sahithreddy.
Reg no:12107066.
Course Code:POL226.

2. Introduction
 The Look-East Policy was officially launched in 1992.
 It was introduced by former PM P.V Narasimha Rao in 1990’s.
 Technically, it covers all countries of Asia-Pacific Region, but in practical terms, it has been
confined to only South-East Asia or the member nations of ASEAN. The 10 member
ASEAN consists of Indonesia, Malaysia, Singapore, Thailand, Philippines (five
original members), Brunei, Vietnam, Laos, Cambodia and Mayanmar. In comparison to
South-East Asia, Asia Pacific is larger region

3. Objective
 The objective of the look east policy is to forge social, economic and cultural relations with
the countries of East Asia.
 First, to renew political contacts and understanding with ASEAN member states.
 Second to active enhanced economic interactions including investment and trade, science
and technology, tourism, etc. with South East Asian countries.
 Third to strengthen defence and strategic links with these countries to achieve better
understanding. Subsequent govt led by BJP and Congress parties have acknowledged the
importance of South East Asia.

4. Expectations
The Look-East policy was officially launched in 1992. It was expected to:
 Contribute significantly to India’s efforts globalisation and integration with the world
economy.
 Fill the void caused by the collapse of the soviet Union, its major trading partner; and
 Help the country in overcoming its isolation from a world-wide phenomenon of joining
regionalism.

5. Rationale
 Entry into trading blocks of the region-APEC & ASEAN forum.
 Adding share of manufacturing to GDP.
 Benefits of geographical proximity-low transport costs and shorter delivery schedules.
 Scope to act as important stopovers for Indian exporters.
 Population of Indian Origin contributing to industrialisation and trade promotion of these
countries.
 Derive benefits from the growing ASEAN economic co-operations, more specifically the
ASEAN Free Trade Area(AFTA).

6. Advantages of the Look East Policy
India’s strength
 Computer Software (Information Technology).
 Pharmaceuticals.
 Process Development.
 Huge Potential Demand.
East Asia’s Strength
 Electronic Equipment.
 Heavy Engineering.
 Product Development and Marketing.
 Underutilized capacity.

7. Problems in LOOK EAST POLICY
 Limited Economic Integration.
 Restrictive policy towards FDI.
 Different economic structure and degrees of openness.
 Inefficient bureaucratic process.

8. _LOOK ACT EAST NOW
 PM Narendra Modi unveiled India’s ‘Act East’ policy at the ASSEAN Summit in November
2014.
 It is an upgradation of the Look East Policy.
 More Action Oriented policy towards ASEAN specifically and East Asia in general.
 Establishing a special purpose vehicle for project financing, building information highways,
and inviting ASEAN countries to participate in India’s ongoing economic transformation.
 India-ASEAN trade has crossed $80 bn as of 2014 and is expected ton scale up to $100 bn
by and double that volume by 2022.

9. Sources
https://www.drishtiias.com/daily-updates/daily-news-analysis/india-s-act-east-policy-1
https://www.orfonline.org/expert-speak/indias-act-east-policy-and-regional-cooperation-
61375/
https://www.clearias.com/act-east-policy/

10. THANKYOU…..
Submitted to:
Dr.Gurjeet Kaur.
Course Title:
INDIAs FOREIGN
POLICY IN A
GLOBALIZING
WORLD.