The enunciation of the Act East Policy by Prime Minister Modi at the ASEAN India summit in 2014 was a significant one. The objective of ”Act East Policy” is to promote economic cooperation, cultural ties and develop strategic relationship with countries in the Asia-Pacific region through continuous engagement at bilateral, regional and multilateral levels thereby providing enhanced connectivity to the States of North Eastern region with other countries in our neighbourhood.
AEP provides an interface between all States of North East India and the ASEAN region. Various plans at bilateral and regional levels include steady efforts to develop and strengthen connectivity of the North East with the ASEAN region through trade, culture, people-to-people contacts and physical infrastructure (road, airport, telecommunication, power, etc.). Some of the major projects include Kaladan Multi-modal Transit Transport Project, the India-Myanmar-Thailand Trilateral Highway Project, Rhi-Tiddim Road Project, Border Haats, etc.
Besides showing greater intent to undertake cooperation with ASEAN countries, it showed clarity that the cooperation would spread over all the three pillars. So far, the economic pillar had dominated and the socio-cultural pillar had been a traditional area of cooperation. Now, the political security pillar was given equal importance.
Another significant aspect of the Act East Policy was the emphasis given to the North Eastern States. They are the closest in proximity to Myanmar and Thailand. These are two ASEAN countries with whom India has land accessibility. Significantly, the two major projects under India’s Act East Policy, the Kaladan Multi-modal Transit Transport Project and the the India-Myanmar-Thailand Trilateral Highway Project, both are connectivity projects for North East India to Myanmar and Thailand. These are covered under the rubric of not only the India-ASEAN engagement but also under the East Asia Summit and BIMSTEC.
Upgrading connectivity between North East India and the ASEAN countries is intended to increase economic engagement and mutual development. Funds from the Ministry of External Affairs have gone into developing the trilateral highway and the Kaladan multimodal project, but those funds cannot be spent in India. India has to create its own resources or, as is now becoming evident, Japan is being invited through the India North East Forum to contribute to the development of North East.
India and Japan established the Act East Forum (AEF) in 2017 for the development of the North Eastern region of India (NER) and to promote connectivity within this region and between this region and Southeast Asia. AEF reflects the synergy between India’s AEP and Japan’s vision for a free and open Indo-Pacific.
The scope of activities under the initiative will be covered under the umbrella of AEF and will build on the inherent strengths of NER. This document will be updated periodically by including or modifying the projects through mutual consultation and consent. Agriculture, development of agro-industries, especially through SMEs, promotion of tourism and cultural exchanges, promoting Skill India, cooperation in development of urban areas, providing healthcare, promoting sustainable use of forest resources, development of new and renewable energy, disaster resilience, connectivity are among the areas to be possibly covered under that AEF but these segments can be acted upon by individual States as well.
The connectivity assets being built with ASEAN countries are meant to augment the development and prosperity of the North Eastern States. Practically, what can be done?
First, there is the need for matching infrastructure in India. Once the trilateral highway comes up, Indian States would have the requirement of good roads so they may reach Moreh, from where they can access Myanmar and then Thailand. Secondly, there must be a vision, which goes beyond border trade. At present, border trade is the main trade and new avenues need investment. Some efforts with Japan have been made to look at the bamboo industry and the related industrial clusters. There has to be a thought-out process for every State to have a complementary industrial investment which will lead to productivity which can use the new infrastructure for better market access.
Thirdly, this should be thought out as a value chain concept for the region instead of every State making the same thing. There could be a differentiation of priorities using local materials and capacities available. Fourth, the building up of infrastructure within the North Eastern States would also open up market opportunities among themselves.
The advantages of infrastructure, connectivity and trade facilitation must be grasped by the North Eastern States in a fulsome manner.
(The author is former Ambassador to Germany, Indonesia, Ethiopia, ASEAN and the African Union and Chair, CII Task Force on Trilateral Cooperation in Africa)
