Look East Policy
LOOK EAST POLICY
India's Look East Policy consists of its efforts to develop extensive economic and strategic relationships with countries of Southeast Asia in order to build considerable regional power and establish a counter to the increasing influence of the People's Republic of China. The policy of engagement with India's eastern neighbors begun in the early 1990's, after the Cold War. The primary reasons for the establishment of this policy were the collapse of the Soviet Union, a large Indian trade partner, and the 1991 economic reform introduced by then Finance Minister Manmohan Singh, under Prime Minister Narasimha Rao.
The policy was given an initial thrust by Prime Minister Narasimha Rao who visited China, Japan, South Korea, Vietnam and Singapore. Consequently, in 1992, India became an important dialogue partner at the ASEAN Summit. (Association of South East Asian Nations) These efforts successfully culminated in India become a summit level member of the ASEAN in 2002. India went on to join the Ganga Mekong Cooperation and the East Asia Summit to strengthen diplomatic ties in the region.
Country Specific Efforts
Thailand:
India signed a framework Free Trade Agreement with Thailand in October 2003. Under the agreement, free trade in investments and services began in 2006, and goods in 2010. A Joint Working Group is also in place to share data on terrorism related activities.
Malaysia:
India is one of Malaysia's largest trading partners aside from China, and the ASEAN bloc. In December 2004, India and Malaysia agreed to initiate a Comprehensive Economic Cooperation Agreement (CECA). Twelve MOUs were also signed covering wide ranging cooperation in satellite technology, biotechnology, information technology, infrastructure and education.
Indonesia:
India and Indonesia agreed to establish a strategic partnership aimed at development of relations in the social, economic, political, security, cultural and technology fields. Indonesia is an active ally of India in the East Asia Summit and at the Organisation of the Islamic Conference.
Myanmar:
India and Myanmar share a land boundary, and hence the relationship is special in view of India's strategic and security concerns. Border Trade Agreement has been signed, and the possibility of a rail link is being assessed. There is an ongoing project for construction of a trilateral highway from Moreh in India to Mae Sot in Thailand to Bagan in Myanmar, the progress of which is being reviewed regularly by the foreign ministers of the three nations.
Singapore:
A Comprehensive Economic Cooperation Agreement was signed by India and Singapore. This includes a Free Trade Agreement, Bilateral Investment Promotion Treaty, Double Tax Avoidance agreement, Air Services Agreement. Former Prime Minister Lee Kuan Yew also supported India's bid for a permanent United Nations Security Council seat.
Cambodia:
India has a number of bilateral treaties for cooperation in trade, science & technology, agriculture, tourism, air services and visa exemption. India has some major projects in the areas of education, entrepreneurship development and information technology. India has helped Cambodia through the Indian Technical and Economic Cooperation programme.
Laos:
India and Laos have signed a number of agreements and MOUs in the fields of culture, cooperation in defense, cooperation in science & technology, agricultural cooperation, drugs and illicit trafficking, and exemption of visas for diplomats and officials. India has also set up an Entrepreneurial Development Centre in Laos.
Vietnam:
India has a number of bilateral treaties and agreements with Vietnam in the areas of Consular relations, Avoidance of Double Taxation, Narcotics, Science & Technology and Culture. Another credit line of US $ 27 million to Vietnam was signed in August 2004 between Exim Bank of India and Ministry of Finance, Vietnam. India is also helping Vietnam in setting up an Advanced Resource Centre in IT in Hanoi and HRD in the field of IT in six educational institutions in Vietnam.
China Relations:
While India and China remain strategic rivals, the Look East Policy involves establishing friendly relations with China as well. In 2006, India and China opened up the Nathu La Pass for the first time since the 1962 war. In November of 2006, Prime Minister Singh and President Hu Jintao signed a 10 point declaration for conflict resolution and confidence building. Trade between India and China is increasing at 50% a year, and is due to reach $60 billion by the end of 2010. However, China's close relations with Pakistan and border disputes in Sikkim and Arunachal Pradesh have threatened the improvement in bilateral relations. India's support for the exiled Tibetan religious leader, the Dalai Lama also causes some friction in bilateral ties.
Success:
Trade with South and East Asian nations accounts for almost 45% of India's foreign trade. Although its efforts have met with considerable success, India trails China in the volume of trade and economic ties it enjoys with the nations of the region. India's friendly relations with Myanmar's "junta" however has sparked off much criticism at home and abroad. However, it remains in the best strategic interests of the government to keep these relationships intact.
