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Heading EastSecurity, Trade, and Environment between India and Southeast Asia$
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Karen Stoll Farrell and Sumit Ganguly

Print publication date: 2016

Print ISBN-13: 9780199467242

Published to Oxford Scholarship Online: September 2016

DOI: 10.1093/acprof:oso/9780199467242.001.0001

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India and the Potential of Trade East

India and the Potential of Trade East

(p.127) 6 India and the Potential of Trade East
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Rani D. Mullen

Oxford University Press

India’s quarter century old Look East Policy, a policy focused on increasing India’s strategic as well as economic relationship with its eastern neighbours, was refashioned under Prime Minister Modi’s administration into an Act East Policy. This new policy has made India’s relations with its East Asian neighbours a priority and the facilitation of trade in particular will be crucial to determining the success of the overall Act East policy. Trade with India’s eastern neighbours would bring large benefits to the overall economy and per capita incomes in India as well as its eastern neighbours. Indeed a strong India Trade East policy has the potential to transform the South and Southeast Asian region into an engine of growth for Asia. Yet the continuing high non-tariff barriers, lack of infrastructure, and the resolution of lingering border issues with India’s eastern neighbours will be crucial hurdles that need to be overcome in order for the Act East policy to enable India’s trade eastward.

Keywords:   India, Look East, Narendra Modi, trade, Southeast Asia, Act East, regional trade, international trade, economy

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