Chandan Kumar Nath
(chandankumarnath7236@gmail.com)
India’s Act East Policy (AEP), launched in 2014 as an evolution of the Look East Policy of 1991, marks a proactive shift in India’s foreign policy, emphasising economic, strategic, and cultural engagement with the Asia-Pacific region. For Northeast India (NEI), comprising eight states – Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, and Sikkim – the AEP is a transformative framework. Positioned as India’s gateway to Southeast Asia, the Northeast Region (NER) is pivotal to realising the policy’s objectives. Northeast India’s strategic location, sharing 98% of its borders with neighbouring countries like Myanmar, Bangladesh, Bhutan, Nepal, and China, makes it a critical linchpin for the AEP. The region’s proximity to Southeast Asia positions it as a natural conduit for trade and connectivity with the Association of Southeast Asian Nations (ASEAN) and East Asian economies. The AEP seeks to leverage this geography to integrate NEI into regional economic corridors, transforming it from a peripheral region into a hub of commerce and cooperation.
The NER’s abundant natural resources, including oil, natural gas, minerals, and hydroelectric potential, further enhance its economic significance. Events like Advantage Assam 2.0, held in February 2025, have showcased the region’s investment potential, attracting global investors to sectors such as energy, agriculture, tourism, and manufacturing. By positioning Assam and the broader Northeast as a global investment hub, the AEP aims to harness these assets for sustainable development, fostering economic growth and employment opportunities locally. Connectivity is the cornerstone of the AEP, and NEI is at the heart of ambitious infrastructure projects designed to link India with Southeast Asia. Key initiatives include the India-Myanmar-Thailand Trilateral Highway, the Kaladan Multi-Modal Transit Transport Project, and the Bangladesh-Bhutan-India-Nepal (BBIN) Initiative. These projects aim to enhance physical connectivity through roads, railways, waterways, and air routes, facilitating trade and people-to-people exchanges. For instance, the Kaladan project provides an alternative route to NEI via Myanmar’s Sittwe port, reducing dependence on the narrow Siliguri Corridor. Similarly, the reopening of the Stilwell Road and improvements to national highways like NH-153 and NH-37 are poised to boost trade with Myanmar and China. The Agartala-Akhaura rail link and inland waterways through Bangladesh further integrate NEI with regional markets.
Japan’s involvement, through the India-Japan Act East Forum established in 2017, has been instrumental in modernising NEI’s infrastructure. Projects like the Dhubri-Phulbari bridge and road connectivity initiatives supported by the Japan International Cooperation Agency (JICA) underscore the AEP’s collaborative approach. These efforts not only enhance connectivity but also promote inclusive development by involving local communities, including women, in planning and implementation. The AEP’s focus on economic integration with ASEAN and East Asia offers NEI a chance to overcome its historical economic isolation. The region’s diverse resources and skilled labour force make it attractive for investment in sectors like agribusiness, handicrafts, and renewable energy. The ASEAN-India Free Trade Area and projects like the Urja Ganga pipeline and National Waterway 2 further connect NEI to national and regional markets, fostering industrial growth. For local communities, the AEP has brought tangible benefits. Improved infrastructure has created employment opportunities, reducing the need for migration to urban centres. Initiatives like Advantage Assam 2.0 highlight the region’s potential as a manufacturing and service hub, with investors eyeing its strategic location for access to South and Southeast Asian markets. Tourism, driven by NEI’s rich biodiversity and cultural heritage, is also emerging as a key economic driver, with the AEP promoting the region as a hotspot for ecotourism and adventure travel.
The AEP’s cultural dimension strengthens NEI’s role as a bridge between India and Southeast Asia. The region’s socio-cultural affinities with ASEAN countries, rooted in shared histories and traditions like Buddhism, facilitate people-to-people connections. Initiatives such as cultural festivals, academic exchanges, and the revival of Nalanda University promote NEI’s heritage while fostering regional goodwill. The Indian government’s efforts to establish universities in NEI and offer scholarships to ASEAN students further enhance educational ties. These initiatives not only showcase NEI’s cultural richness but also counter perceptions of insecurity, encouraging tourism and investment. By positioning NEI as a cultural hub, the AEP fosters regional peace and intergovernmental collaboration. Security is a vital component of the AEP, given NEI’s history of insurgencies and cross-border challenges. The region’s porous borders with Myanmar and Bangladesh have historically facilitated arms and drug trafficking, fuelling instability. However, the AEP’s emphasis on security cooperation with ASEAN and partners like Japan has led to significant progress. Joint military operations, such as those along the India-Myanmar border, have reduced insurgent activity by 80% over the past eight years. India’s engagement in forums like the Quad and ASEAN Regional Forum reinforces its commitment to a rules-based order in the Indo-Pacific, addressing concerns like Chinese assertiveness in the region. By enhancing border management and diplomatic ties with neighbours, the AEP ensures stability, creating an environment conducive for economic growth in NEI.
Despite its successes, the AEP faces challenges in NEI. Political instability in Myanmar and Bangladesh has delayed key connectivity projects, such as the Trilateral Highway. Internal issues, including ethnic tensions, governance gaps, and inadequate representation of NEI’s diverse communities, also pose hurdles. Critics argue that export-orientated projects may exploit the region’s resources without equitable benefits for locals, necessitating inclusive development models. To address these challenges, India must prioritize resilient infrastructure, robust border management, and diplomatic engagement with neighbours. Engaging local stakeholders in policy decisions and ensuring equitable resource distribution will enhance the AEP’s impact. Additionally, countering Chinese influence in the region requires sustained investment in NEI’s development and stronger regional partnerships.
India’s Act East Policy has redefined Northeast India’s role from a peripheral region to a vibrant gateway for regional cooperation. By leveraging NEI’s strategic location, natural resources, and cultural heritage, the AEP fosters connectivity, economic growth, and security. While challenges remain, the policy’s holistic approach encompassing commerce, culture, and connectivity offers a blueprint for transforming NEI into a hub of prosperity. With sustained political will and inclusive strategies, the Northeast can emerge as the pulsating heart of India’s global ambitions, bridging the nation with the dynamic economies of East Asia.