Why in the News?

Syllabus: GS-II & V: Bilateral Relation

The Act East Policy (AEP) is once again under scrutiny in Northeast India. Despite repeated claims by policymakers and diplomats that it will transform the region into a hub of trade, connectivity, and cultural exchange with Southeast Asia, ground realities remain stagnant. The failure to operationalize the India–Myanmar–Thailand Trilateral Highway and the Kaladan Multi-Modal Transit Transport Project—primarily due to Myanmar’s prolonged political crisis after the 2021 military coup—has dashed the Northeast’s hopes of becoming the gateway to Southeast Asia. Many experts argue that, for now, the Act East Policy is effectively “in cold storage.”

About the Act East Policy: Historical Background

• Look East Policy (LEP) was first articulated in the early 1990s by then Prime Minister P.V. Narasimha Rao to reorient India’s foreign and economic policy towards the dynamic economies of Southeast Asia.
• In 2012, PM Manmohan Singh emphasized Northeast India as the bridge for connectivity at the 10th India–ASEAN Summit in Phnom Penh, setting timelines for the Trilateral Highway Project.
  In 2014, the NDA government upgraded LEP into the Act East Policy, stressing proactive engagement with ASEAN, East Asia, and the Indo-Pacific, while also highlighting the strategic role of Northeast India.
• Flagship projects included:
  • India–Myanmar–Thailand Trilateral Highway (Moreh to Mae Sot, 1,360 km).
  • Kaladan Multi-Modal Transit Project (linking Mizoram to Myanmar’s Sittwe Port).
  • Plans for cross-border energy, trade corridors, and cultural exchanges.
    

Significance of the Act East Policy

• Geostrategic Leverage: The Northeast shares a 1,643 km border with Myanmar, making it India’s only land gateway to ASEAN.
• Economic Opportunities: Potential to access a $3 trillion ASEAN market and expand India’s export base.
  
• Regional Development: Transformation of the Northeast into a trade corridor, creating jobs and reducing its perceived remoteness and alienation.
• Cultural & Historical Linkages: Ancient trade routes (e.g., Stilwell Road) and shared traditions between Assam, Manipur, Nagaland, and Southeast Asia.
• Strategic Balance: Countering China’s Belt and Road Initiative (BRI) and expanding India’s influence in Indo-Pacific regionalism.

Data & Facts Box: Act East Policy and Northeast

• Connectivity Projects: India–Myanmar–Thailand (IMT) Trilateral Highway:

• • • Length: 1,360 km (Moreh in Manipur to Mae Sot in Thailand).
    • Completion target: Originally 2016, delayed due to Myanmar instability.
    • Kaladan Multi-Modal Transit Transport Project:
      • It connects Mizoram to Sittwe Port (Myanmar) via river and road.
      • Estimated Cost: $484 million (approx. ₹3,500 crore).
      • Status: Delayed, completion date uncertain.
    • Stilwell Road (historic): 1,736 km from Ledo (Assam) to Kunming (China), via Myanmar.

• Borders and Geography: India–Myanmar Border: 1,643 km, out of which 520 km is with Northeast states (Manipur, Nagaland, Mizoram, Arunachal Pradesh).

• • Assam’s border with Myanmar: no direct border, but Assam is the gateway via Manipur/Nagaland routes.
• Trade & Economy: India–ASEAN Trade (2023–24): $131.58 billion.
  • ASEAN share in India’s global trade: ~11%.

Potential market size: $3 trillion ASEAN economy.

Challenges in Realizing the Full Potential

• Myanmar Political Crisis: The 2021 military coup disrupted projects like the Trilateral Highway and Kaladan project. Civil war conditions block cross-border connectivity.
• Infrastructure Deficit: Despite ₹6,000 crore allocation in the 12th FYP, road, rail, and logistics facilities in Northeast India remain inadequate.
• Security Concerns: Insurgencies, cross-border militancy, and smuggling weaken trust and investment in border areas.
• Limited Industrial Base in NE: Without strong manufacturing or services sectors, Northeast cannot exploit access to ASEAN markets.
• Bureaucratic Delays & Coordination: Delayed clearances, inter-ministerial overlaps, and lack of synchronisation with ASEAN partners.
• China Factor: Beijing’s deep penetration in Myanmar via China–Myanmar Economic Corridor under BRI creates geopolitical competition.
  

Why Northeast Should Focus on Self-Reliance Rather than Solely on AEP?

• Uncertain Geopolitics: Myanmar’s instability proves that external dependencies can derail regional plans for decades.
• Weak Spillover Benefits: Even if AEP connectivity improves, without strong local industries, Northeast will remain only a transit corridor, not a production hub.
• Chronic Issues: Floods, erosion, poor urban planning, and lack of investment already burden the region. Solutions must start internally.
• Examples of Self-Reliance:
  • Assam produces over 50% of India’s tea, contributing significantly to exports. 
  • Unique to the region; Assam supplies over 90% of global Muga silk. Export potential is untapped but local communities sustain livelihoods through this.
  • Assam is India’s largest fish seed producer. Government schemes like Gharkol Pukhuri Gharkol Maach promote community ponds.
  • Assam accounts for 12% of India’s crude oil production and 8% of natural gas, making it an energy-surplus state.
  • SHGs under Assam’s Kanaklata Mahila Sabalikaran Yojana: Empowering women entrepreneurs in weaving, food processing, handicrafts.
  • Piggery Mission in Mizoram & Nagaland: With pork being a staple, states are promoting commercial piggery to reduce imports from Punjab/Haryana.
  • Over 450 start-ups registered from NE under Startup India, focusing on eco-tourism, agri-tech, and food processing. 
    • Example: Zizira (Shillong-based startup) markets indigenous herbs/spices globally.
• Job Creation: Industrial and agricultural modernisation can address youth unemployment, which connectivity alone cannot solve.
  

Way Forward

• Strengthen Self-Reliance: Develop NE’s agro-processing, textiles, and tourism industries to create demand even before external markets open.
• Parallel Connectivity to Bangladesh: Prioritise India–Bangladesh projects (railways, riverine transport) which are more stable than Myanmar routes.
• Resilient Infrastructure: Build all-weather roads, logistics hubs (like Jogighopa multimodal park) to prepare for future ASEAN trade.
• People-Centric Integration: Encourage border haats, cultural exchanges, and local entrepreneurship so that benefits reach grassroots communities.
• Wait-and-Prepare for Myanmar: While civil war blocks current progress, India should keep diplomatic engagement alive for long-term readiness.
• Policy Communication: Avoid raising false hopes; instead, build confidence through realistic timelines and parallel domestic focus.
  

Conclusion

The Act East Policy holds immense potential, but for the Northeast, it remains a mirage until Myanmar stabilises. Instead of depending on uncertain foreign linkages, the region must invest in its self-reliance, industrialisation, and human capital. When the window to ASEAN finally opens, a strong and prepared Northeast will then be ready to seize the opportunity.

Mains Practice Question

Q. The Act East Policy is often hailed as a game-changer for Northeast India. Critically evaluate this claim in the context of current geopolitical challenges and suggest how the region can balance external integration with internal self-reliance. (250 words / 15 marks)

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