Indias Look East Policy
Background Launched in 1991 Why? In the wake of the collapse of
Soviet Union India wanted to improve its relations with all major
powers of the world India focused on South-East Asia as it was a
growing market India wanted to go beyond the confines of SAARC to
reap the benefits out of the economic potential of the South East
and East Asian region To balance Chinas influence in the region
Initially directed towards the SE Asian nations. But India has now
included China, Japan, S.Korea and other Asia Pacific nations in
the gamut of this policy The policy which began largely as an
economic initiative has gained political, military and regional
dimensionsPrinciples of LEP
Outcomes of the policyStrengthening Cooperation India-ASEAN
relations have strengthened India became ASEANs full dialogue
partner in 1996 Became member of ASEAN Regional Forum in 1996 Since
2002, India has annual summits with ASEAN along with China, Japan
and Republic of Korea BIMSTEC and Mekong Ganga Cooperation floated
by India in 1997 and 2001 respectively India is also a founding
member of East Asia SummitTrade and Investment ASEAN is presently
Indias fourth largest trading partner after EU, USA and China FDI
data Indo-ASEAN bilateral trade data India-ASEAN FTA signed in 2009
at Bangkok came into force from January 2010. However, FTA did not
include software and information technology FTA is a part of the
Framework Agreement on Comprehensive Cooperation signed with ASEAN
in 2003Development Cooperation India provides assistance to
Cambodia, Laos, Vietnam and Philippines in the form of grants, soft
loans, credit lines and training sources for their socio-economic
development. As a dialogue partner of the Pacific Islands Forum
(PIF), India has been engaging with these countries to provide
assistance for capacity building MILAN naval symposiumScience and
Technology India has set up a Tsunami Warning Centre to extend
information exchange and data sharing arrangements with BIMSTEC
countries Satellite sharing
Bilateral Ties FTA with Thailand and CECA with Indonesia and
Singapore Enhanced defence ties with Malaysia Strong economic ties
with China Strategic partnership agreements, economic interaction
and defence cooperation with Japan CEPA with South
KoreaInfrastructure Cooperation Asian Highway, Asian Railway link
being discussed Kaladan Multi-modal Transit Transport facility is
aimed at establishing connectivity between Indian ports and Sittwe
port in Myanmar through riverine transport and road links in
Mizoram Ganga-Mekong initiative Completion of the 160 KM
India-Myanmar Friendship road from Tamu to Kalemyo to Kaletwa built
by BROEducation Nalanda UniversityNew cooperation area could be
Indias LEP can be furthered through areas like Education, human
resources development, democracy, human rights and culture
Furthering of trade ties Simplification of visa regime India-ASEAN
health care initiative India-ASEAN Green Fund An Open Skies Policy
Cooperation in fighting terrorism and transnational crime Tourism
has a lot of potentialLook East and North-East NE states are
land-locked and joined to India by a narrow corridor This has been
a serious impediment for the development of the region North
Eastern Region Vision 2020 makes a serious effort for
socio-economic development of this region to match with the
objectives of the Look East Policy Several measures have been
undertaken under the aegis of LEP to uplift NE India Asian Highway
Asian Railway Link Natural Gas Pipeline Kaladan Multi-modal transit
transport facility (to Sittwe port through riverine transport and
road links in Mizoram) Ganga Mekong initiativeThe China Factor In
the cold war era, South East Asian nations perceived China as
dangerous because of its military expansionist scheme in Asia.
While now the peaceful riseof China is being considered more of an
opportunity despite the challenges. China is virtually dominating
the South East Asian region. The ASEAN-China Free Trade Area
created by an accord in 2004 has come into effect from January
2010. This covers nearly 1.9 billion people. In terms of economic
value this is the third largest regional agreement, after only the
EU and the NAFTA. A new talking point in East Asia is that of the
multi-laterisation or, more precisely, the likely enlargement of
the Chiang Mai Initiative (CMI) later this year. The CMI is
basically a currency pool of the ASEAN+3 countries (China, Japan
and South Korea).The move was a direct response to the recent
outbreak of the US-induced global and financial economic crisis,
which has not fully blown away as now (P.S. Suryanarayana-Frontline
January 29, 2010). China is predicted to overtake Japan as the
worlds second largest economy some time in 2010. India must be
aware of the fact that it has not been invited to the EAS because
of its rising economic potential alone but more as a balancing
force to offset the China factor. Prime Minister Manmohan Singh has
repeatedly mentioned that in a global environment, India is not
afraid of competition and it can complement rather than compete in
the EAS.
Shortcomings of the policy India still remains outside the Asia
Pacific Economic Cooperation (APEC) Though India has entered into a
number of pacts with ASEAN countries, the implementation of such
accords has been poor. This is because India fears competition from
these countries in the agricultural sector India lags behind China
and Japan in almost all spheres of Pan East Asian Cooperation East
Asian observers reckon that India has so far appeared less
proactive than China on some critical issues Some analysts feel
that Indias LEP lacks a strategic vision despite seeking defence
cooperation with some ASEAN nations and securing a role for joint
patrolling in the Malacca StraitsRecent Developments India Show
2011 held in Singapore in January 2011. Conclusion Indias LEP
objectives can be furthered through areas of comparative advantage
such as Education, democracy and culture In this respect, Nalanda
project is noteworthy India should make use of its lead in IT
sector Open education centers in East Asia Emphasise tourism from
ASEAN to India India is becoming a stabilizing and balancing force
in this region The crux is that this Look East policy should
reinforce and demonstrate Indias commitment to this region which
accounts for about one-third of Indias trade. It should also be
made clear that this commitment will not be influenced in any way
by the improving relations between India and the US and EU.
ASEAN Before 1990 the relations between ASEAN and India were not
strong The signing of the Friendship Treaty with the Soviets,
Indias stand on Afghanistan and Indias recognition of the Kampucean
government led to the estrangement between India and ASEAN Focus on
strengthened and multi-faceted relationship with ASEAN an outcome
of the significant changes in the worlds political and economic
scenario since the early 1990s and Indias own march towards
economic liberalisation Indias search for economic space has
resulted in our Look East Policy ASEAN, on its part, seeks access
to Indias professional and technical strengths 1992: sectoral
dialogue partner 1996: upgraded to full dialogue partnership 1996:
India has been an active participant in the ASEAN Regional Forum
Since 2002, annual summits with ASEAN along with China, Japan,
Republic of Korea ASEAN adopted a new charter in 2008Table 1Binders
/OpportunitiesSeparators/Challenges
Security. Sea-lanes of the Indian Ocean are important for
trade
Economic Ties
Economic Relationship 2003: ASEAN-India Framework Agreement on
Comprehensive Economic Cooperation. Trade amounted to USD 43.90 bn
in 2009-10 Indias exports: USD 18.11 bn Imports: USD 25.79 Agreed
to work for a target of USD 70 bn by 2012 CECA signed in 2005.
Components are being negotiated Covers FTA in Goods, Services and
investment as well as Economic Cooperation in identified areas FTA
for trade in goods signed in 2009. Came into force in 2010. FTA for
TiG has come into force with Malaysia, Singapore, Thailand,
Indonesia, Vietnam, Myanmar and Brunei The next step is the
conclusion of negotiations on Trade in Services and Investment
Agreement for which a target date of March 2011 has been
agreedASEAN-India Cooperation fund: Projects are undertaken through
this fund, which is managed by the ASEAN Secretariat in Jakarta.
Collaborative R&D & Workshop on Thermally Sprayed
Ceramic-based Coatings. Establishment of a Digital S&T Library
in ASEAN countries. Human Resource Development in Free and Open
Source Software. Establishing VSAT based Tele-Education and
Tele-medicine network in CLMV countries Training of ASEAN Diplomats
in India Establishment of Centres of English Language Training
(CELT) and Enterpreneurship Development Centres (EDC) in CLMV
countriesASEAN Development Fund: An amount of US $1 million was
contributed by India to ASEAN Development Fund over a span of three
years from 2005-07 to support the Vientianne Action Programme of
the ASEAN countriesASEAN-India S&T fund: A fund with a US$ 1
million contribution from India has been established in India to
promote joint collaborative R&D research projects in Science
& Technology sectorsIndia-ASEAN Green Fund: An India-ASEAN
Green Fund is proposed to be established with a corpus of US $ 5
million to promote adaptation and mitigation technologies in the
area of Climate change in ASEAN countriesTerrorismASEAN and India
have signed a Joint Declaration on Cooperation to Combat
International Terrorism in October 2003 in Bali, and in the same
year, India acceded to the Treaty of Amity and Cooperation in
Southeast AsiaAbout 0.34 million tourists come to India from ASEAN.
From India, about 2 million go to ASEANPharmaceuticals and
Healthduring the official level India-ASEAN Working Group (AIWG)
Meeting in October, 2008, a concept paper for cooperation in health
and pharmaceutical sector was given to the ASEAN side. Similarly,
an MOU submitted by Deptt. of AYUSH of India in the field of
traditional medicine is also under consideration.Human Resource
DevelopmentEntrepreneurship Development Centres in Cambodia, LAO
PDR, Vietnam and Myanmar have been established. Centres for English
Language Training (CELT) have been set-up in Cambodia, Laos,
Myanmar and Vietnam while one in Indonesia is under process. India
has also offered a number of ITEC/ICCR fellowships and training in
various sectors.
People to People Contact and DiasporaThe Tourism Ministers of
ASEAN and India held their second meeting on 25th January, 2010 and
agreed to develop an India-ASEAN Tourism Agreement, Promotional
chapter for tourism (APCT) and a familiarization trip from India to
ASEANthe media exchange programme entitled ASEAN India Media
Exchange Programme was initiated to facilitate greater interaction
and cooperation between ASEAN and IndiaSpecial Course for Diplomats
from ASEAN Countries are conducted regularly at the Foreign Service
InstituteStudents from ASEAN visit IndiaInfrastructureASEAN
Connectivity Initiative: to improve intra-ASEAN connectivity as
well as with dialogue partners.AviationDraft Air Services
Agreement. Ultimately move towards open skies agreement.
ASEAN Regional Forum Setup in 1993 as a regional security
cooperation and dialogue platform 27 member states 10 ASEAN 10
ASEAN Dialogue Partners 7 other countries: Bangladesh, DPRK,
Mongolia, Pakistan, Papua New Guinea, Timor Leste and Sri Lanka ARF
process is three tiered Track 1 Track 1.5 Track 2 There exists
interaction among defence officials alongside diplomats India
became ARF member in 1996 Participation in ARF demonstrates our
increasing engagement in the Asia-Pacific region, both in the
politico-security and economic Underlines our commitment to the
objective of sustaining regional peace and stability 18th ARF
meeting was held in July 2011 in Bali Has organised several
seminars, workshops and training programmes for ARF members Vision
Statement for ARF for 2020 was adopted in 2009 Hanoi Plan of Action
(POA) for implementation of the Vision Statement adopted in 2010
ARF has three stages Promotion of confidence building Development
of preventive diplomacy Elaboration of approaches to conflictTable
2Steps Forward
1. Political interactions have further strengthened through
Senior Official Meetings. President Patils visit to Laos and
Cambodia in 2010.
2. Plan of Action to implement the ASEAN-India Partnership for
Peace, Progress and Shared Prosperity for the years 2010-2015
3. extend visa on arrival facility to nationals of Cambodia,
Vietnam, Philippines and Laos with effect from 1st of January
2011.
Economic Relations India already has a FTA with the block Trade
in services deal has been stuck over the issue of movement of
professionals India has been demanding greater opening in the Mode
IV category so that more professionals get greater job
opportunities in ASEAN The ASEAN member countries have expressed
their concern over allowing the movement of professionals and
putting in place an easier visa regime
East Asia Summit Background Nehru had convened the Asian
Relations Conference in 1947 and later argued for the creation of
Asian Regional Organisation But the idea failed to materialize In
1990s Mahatir Mohammad proposed the creation of an East Asian
Economic Grouping (EAEG) EAEG also failed to take off 2005: First
in Kuala Lumpur 2010: 5th meeting in Hanoi 2011: 6th meeting in
Bali (October). US and Russia to join the summit 16 countries to
East Asia (ASEAN+3+3) + US + Russia
Significance Represents about 60% of world population X% of
world trade Dealt with various issues over the years 2007: Disaster
management and pandemics and energy security 2008: Global Economic
Crisis 2009: Climate Change negotiations Helping to bridge gaps
between sub-regions and nations in Asia. East Asian Community is a
proposed trade bloc
Evaluation Integral part of the regional architecture and a
purposeful vehicle for community building in the region Need to
move from policy declarations to greater functional cooperation EAS
has taken India beyond ASEAN and a step closer to APECNalanda
University Established under the aegis of East Asia Summit as a
regional initiative At the EAS summit 2009(?) in Thailand the
members issued a joint press statement supporting the establishment
of the university Nalanda Mentor Group was constituted in 2007
(Chairman: Amartya Sen) NMG also has representatives from
Singapore, China, Japan and Thailand Will have the following
schools Buddhist studies, philosophy and comparative religions
Historical studies International relations and peace studies BM and
DS Language and literature Ecology and Environmental
StudiesMekong-Ganga Cooperation This concept was floated by India
Established in 2000 at Vientiane in the first MGC Ministerial
Meeting Six members India Thailand Myanmar Cambodia Laos Vietnam
Four areas of cooperation Tourism Culture Education Transportation
Has annual ministerial meetings. 4th meeting was in Sebu,
Philippines MGC initiative is a vehicle for soft diplomacy in
countries that have had considerable cultural influence from India.
Promoting tourism requires connectivity MGCIs intentions concerning
transport and communications consists of two aspects Road networks
India-Myanmar Tamu-Kalewa road inaugurated in 2001 East West
Corridor linking Bay of Bengal to South China Sea Rail connectivity
Paradoxically, the impact of MGCI is seen more in bilateral
relations rather than in multilateral initiatives
Bay of Bengal Initiative for Multi Sectoral Technical
Cooperation (BIMSTEC) 1997 Bangladesh, India, Myanmar, Sri Lanka,
Thailand, Bhutan and NepalIndia has taken a leading role in this
grouping. The second BIMSTEC Summit was held at New Delhi in
November 2008. India has set up a Tsunami Warning Centre to extend
information exchange and data sharing arrangements with BIMSTEC
countries. In addition to the 300 scholarships offered under the
Indian Technical and Economic cooperation Progamme (ITEC) 150 more
offered to BIMSTEC countries (during the summit in Delhi) of which
a report indicates that 80% have been utilized. Negotiations are
underway for a BIMSTEC Free Trade Agreement in goods. The last
BIMSTEC ministerial meeting held in Myanmar in December 2009 was
attended by External Affairs Minister S.M.Krishna, where Climate
Change was identified as one more area of cooperationBIMSTEC FTA
Framework is being negotiated
Other Indian Ocean Rim Association for Regional Cooperation
Specific CountriesSingapore India-Singapore Strategic Dialogue,
constituted in 2007, to promote exchanges at a Track-II
levelEconomy Is Indias largest trade and investment partner in
ASEAN Bilateral trade USD 23 bn in 2010 CECA signed in 2005 Was the
first such agreement to be signed by India with any country
Integrates agreements on trade in goods and services, investment
protection, and economic cooperation in fields like education,
intellectual property and S&T Comprehensive Economic
Cooperation Agreement implemented and periodically reviewed
Singapore has emerged as one of the largest source of FDI inflow
into India amounting to USD 11.64 bn during the period April 2000
to December 2010 This accounts for 9.46% of total FDI inflow to
India Indian FDI in Singapore for the year 2008 was USD 8.01 bn
Other major agreements DTAA (1994) Defence Cooperation Agreement
(2003) MOU on Foreign Service Consultations (1994) Mutual Legal
Assistance Treaty (2005) Technology ISRO is set to place Singapores
first satellite in orbit soonCulture/People-to-people/Diaspora
A large number of cultural societies promote Indian classical
dance and arts Deepawali is regarded as the premier Indian cultural
celebration, on par with the Chinese New Year and Malay Hari Raya
In 2010 India introduced tourist visa-on-arrival for Singapore.
(other countries for which this was introduced are Japan, New
Zealand, Finland and Luxemburg) Diaspora Ethnic Indians constitute
about 9.2% of the total population of 5.1 million Third largest
ethnic group after Chinese and Malays Tamil is one of the four
official languages of Singapore Establishment of Indian education
institutions like Global Indian International School, DAV, DPS, SP
Jain Centre of Management. Politics: Two (of 6) Presidents, 2 (of
4) senior ministers and 2 (of 9) Dy PM have been Indians. SR
Nathan, an Indian, has been the longest serving President of
Singapore Arts: From 1979 to 2006, Indian Singaporeans have won 10,
or 11.4% of the 88 cultural medallions conferred, the highest
honour to artists given by the Singapore government Business: In
2006, Forbes listed four ethnic Indians among the 40 largest
private individual and family fortunes in Singapore, which is 10%
of the list SIMBEX maritime exerciseSingapore is stable and hence
we can bank on itGeostrategic presenceSingapore has invested in
ports in India: Pipavav port, Tuticorin portTable 3Binders
Both are pluralistic societies and share common concerns in
terrorism and religious extremism
Large Indian community in Singapore
Table 4Positives
1. Singapore PM Goh Chok Tong was awarded the Jawaharlal Nehru
Award for International Understanding in 2004
India Laos Relations
In September 2010, President Pratibha Patil visited Laos. India
to give monetary and technical assistance to Lao PDR First tranche
of $72.55 mn to be released for two power projects Cultural
exchange programme has been signed for 2011-13 ASI assistance in
the restoration of the 6th century temple complex of Vat Phou in
the province of Champassak This site was designated as a UNESCO
World Heritage Site in 2001East Asia in generalNalanda university
project can be an important catalyzer in India-East Asia relations.
At the East Asia Summit held in 2009 in Hua Hin in Thailand, the
leaders endorsed and extended their support for the establishment
of Nalanda University.Through the university, academic and cultural
exchange would increase.
India-Malaysia Relations 1957: Established diplomatic relations
with the Federation of Malaya India PM visited Malaysia in October
2010. The text of CECA has been agreed upon. Will be implemented
for July 1, 2011. Collaboration in defence sector and
infrastructure development. To step up cabinet level exchanges in
numerous areas India-Malaysia would liberalize their respective
investment regimes to facilitate greater foreign direct investment
into each others territory. MoU on cooperation in the traditional
systems of medicine makes India the second country with which
Malaysia has inked such a pact. MoU on Cooperation in the field of
Tourism MoU on cooperation in the field of IT & Services
Cultural Exchange Programme Agreement between CSIR and UNIK of
Malaysia To set up a joint working group on Counter-Terrorism
Economy Economic and Commercial relations are emerging as the
mainstay of the bilateral relationship Malaysia is the second
largest trading partner for India within ASEAN India is the largest
trading partner for Malaysia from among the countries of the South
Asia, excluding China CECA (likely to be asked) Came into force on
July 1, 2011 India Malaysia CEOs forum launched Bilateral trade
2010: USD 8.94 bn Indias exports: USD 2.47 bn Indias imports: USD
6.47 bn Expected to cross USD 10 bn in 2011 due to the
implementation of CECA 21st largest investor in India Maxis Comm in
Aircel, Axiata in IDEA, Khazanah in IDFC Malaysian construction
companies largest presence outside Malaysia is in India They have
completed 52 construction projects worth USD 2.34 bn in India Under
partnership with Malaysian Airports, GMR completed airport in
Hyderabad and Delhi India is the 7th largest investor in Malaysia
Reliance, IRCONDefence 1993: MoU on defence cooperation
Malaysia-Indian Defence Cooperation meetings (MIDCOM) held
regularlyTourism India is the sixth largest source country for
inbound tourism to Malaysia while Malaysia is the tenth largest for
IndiaDiaspora/Cultural relations Malaysian students studying in
India and vice versa About 150,000 legally recruited Indian workers
in Malaysia in both the skilled and semi-skilled category Malaysia
has one of the largest communities of PIOs in the world, numbering
close to 2 million (7.1% of Malaysian population) Overwhelmingly
Tamil speaking Malaysian Indian Congress is the dominant political
organisation of the PIOs PIOs from Malaysia have been sending the
largest contingents to the Pravasi Bhartiya Divas Some important
Malaysian Indians Tony Fernandes: CEO of Air Asia Ash Nair:
Musician Jaclyn Victor: Singer and actressProblems Unfair treatment
of non-muslims and non-Malays Islam is the state religion. About
60% of the people are Muslims Lately, Malaysian governments stance
with regard to constraining religious assertion has been against
non-Muslims Economic condition of many Indians is bad They are not
provided the support that is given to the Muslims and Malays by the
government Brunei See the MEA briefMyanmar Is the land bridge for
India to connect with ASEAN countries Discussed in detail in
another note
