India-ASEAN Trade Crosses $130 Billion Mark in 8 Years, Reflecting ‘Act East’ Policy Impact
Why in News?
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The article highlights the significant success of India’s Act East Policy under PM Modi, showcasing its impact on trade growth, regional connectivity, and diplomatic outreach. Recent infrastructure achievements and high-level diplomatic visits underline India’s growing strategic influence in Southeast Asia and the Indo-Pacific region.
Important Key Points:
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Trade Growth with ASEAN:
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India’s trade with ASEAN doubled in 10 years, rising from USD 71 billion (2016-17) to over USD 130 billion (2024).
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ASEAN is now India’s 4th largest trading partner, while India is ASEAN’s 7th largest.
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Infrastructure Projects:
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Major initiatives to enhance regional connectivity include:
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India-Myanmar-Thailand Trilateral Highway
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Agartala-Akhaura Railway Project (India–Bangladesh’s first railway link through the Northeast)
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These projects have strengthened trade and cross-border connectivity in Southeast Asia.
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Act East Policy (AEP):
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Evolved from the Look East Policy (1992) into the Act East Policy under PM Modi in 2014.
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Focuses on:
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Stronger economic and trade ties
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Strategic and diplomatic engagement
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Cultural exchanges and security cooperation in Southeast Asia and Indo-Pacific.
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Diplomatic Engagements:
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PM Modi has made multiple visits to ASEAN countries:
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Singapore (2015, 2018, 2024)
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Indonesia (2018, 2022, 2023)
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Philippines (2017) – first visit by an Indian PM in 36 years.
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Brunei (2024) – first-ever Indian PM visit.
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Historic event: All ASEAN leaders invited to Republic Day to mark 25 years of ASEAN-India Dialogue Partnership.
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Improved Connectivity:
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Direct flights established between India and several ASEAN nations, boosting business, tourism, and people-to-people ties.
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