India's 'Act East Policy' has transformed from a trade-oriented initiative into a comprehensive strategic engagement with Southeast Asia. Examine this evolution with reference to I

GS2 Neighbourhood Relations
India's 'Act East Policy' has transformed from a trade-oriented initiative into a comprehensive strategic engagement with Southeast Asia. Examine this evolution with reference to India's defence and technological cooperation with Vietnam in the Indo-Pacific region.

Examine

  • 15 marks
  • 8 min
  • 250 words
  • Hard

The Hindu

Read article →

Introduction

India’s “Act East Policy”, launched in 2014 as an upgrade to the earlier “Look East Policy”, has evolved from primarily economic engagement to a multidimensional strategic partnership with Southeast Asia. In the Indo-Pacific context, Vietnam has emerged as a key partner in defence, maritime security and technological cooperation, reflecting India’s broader strategic outreach.

Evolution of Act East Policy

From economic to strategic engagement

  • The Look East Policy (1991) initially focused on:

    • Trade
    • Investment
    • ASEAN integration
  • The Act East Policy expanded the scope to include:

    • Defence diplomacy
    • Maritime cooperation
    • Connectivity
    • Digital and technological partnerships

Indo-Pacific orientation

  • India views ASEAN centrality as crucial for a free, open and inclusive Indo-Pacific.
  • Increasing concerns over coercive behaviour in the South China Sea accelerated strategic engagement.

India–Vietnam cooperation in the Indo-Pacific

1. Defence and maritime cooperation

  • Vietnam is a major pillar of India’s Indo-Pacific strategy.

  • Key areas:

    • Naval exercises and port visits
    • Capacity building and military training
    • Defence Line of Credit for procurement
    • Cooperation in maritime domain awareness

Important developments

  • India supplied INS Kirpan to Vietnam in 2023.

  • Both countries signed the Joint Vision Statement on Defence Partnership.

  • Cooperation has expanded in:

    • Cyber security
    • Defence industry
    • Logistics and maintenance

2. Strategic balancing in the South China Sea

  • India supports:

    • Freedom of navigation
    • UNCLOS-based maritime order
  • Vietnam’s strategic location enhances India’s presence in the South China Sea and Indo-Pacific sea lanes.

3. Technological and economic cooperation

  • Collaboration in:

    • Digital connectivity
    • Space applications
    • Renewable energy
    • Blue economy
  • India’s satellite tracking and IT expertise support Vietnam’s technological modernization.

Challenges

  • China’s assertiveness creates geopolitical sensitivities.
  • ASEAN countries seek balance between major powers.
  • Trade and connectivity potential remain underutilized.

Value Addition

  • Comprehensive Strategic Partnership (2016) elevated bilateral ties.
  • Vietnam is an important partner in India’s SAGAR doctrine.
  • ASEAN-India Trade exceeded $130 billion in recent years, reflecting growing integration.

Conclusion

India’s Act East Policy today reflects a strategic vision that integrates economic, defence and technological dimensions. India–Vietnam cooperation exemplifies this transformation, strengthening regional stability, maritime security and rules-based order in the Indo-Pacific while deepening India’s engagement with Southeast Asia.