Act East in action: India-ASEAN trade surges past $130 Billion in 8 years

Guwahati, Apr 23: India's trade volume with ASEAN has more than doubled in the last ten years as the government is actively pursuing the Act East Policy.

Sources in the Prime Minister's office (PMO) told The Movement. Direct flight connectivity has also improved significantly, with India now directly connected to several countries in the ASEAN bloc, facilitating business, tourism, and cultural exchanges.

Apart from ASEAN, Modi's push for infra projects like the Agartala-Akhaura that under Modi's leadership, India's trade with ASEAN nearly doubled, growing from 71 billion USD in 2016-17 to over 130 billion USD by 2024. Today, India is ASEAN's 7th largest trading partner, while ASEAN is India's 4th largest trading partner.

To enhance economic connectivity, the Modi government has pushed for infrastructure projects such as the India-Myanmar-Thailand Trilateral Highway to boost India-ASEAN trade, and the railway project, which is the first railway project between the North Eastern States and Bangladesh, has provided additional connectivity between India and Bangladesh and encouraged trade between the two nations.

Sources said that Modi's foreign policy is marked by dynamism and action, which is symbolised perfectly through the implementation of the Act East Policy.

Introduced in 1992, the Look East Policy focused largely on economic ties with the Southeast Asia region. With the changing dynamics of the world, Modi in 2014 introduced a new vigour in India's foreign policy. He transformed the Look East Policy with a more dynamic Act East Policy (AEP), emphasising stronger action and outcomes. This shift was not just symbolic but marked a significant strategic approach that emphasised deeper diplomatic engagement, stronger trade partnerships, enhanced security, and cultural exchanges with Southeast Asia and the broader Indo-Pacific region. The Act East Policy placed India as an active stakeholder in regional affairs.

Modi has undertaken multiple visits to these countries in the extended neighbourhood to strengthen ties further.

Notable visits include his multiple trips to Singapore (2015, 2018, 2024), which have strengthened economic and fintech collaboration, and his three visits to Indonesia (2018, 2022, 2023), where India expanded its maritime security cooperation.

In 2017, Modi became the first prime minister to visit the Philippines in 36 years, reinforcing India's role in ASEAN security and trade. His historic visit to Brunei in 2024 marked the first-ever trip by an Indian prime minister to the country, symbolising India's growing diplomatic outreach. Also, it was a historic moment when Modi invited all ASEAN leaders to Republic Day as chief guests to mark 25 years of ASEAN-India Dialogue Partnership.