2016 · GS Paper 2 · Q18 · 12 marks

Evaluate the economic and strategic dimensions of India's Look East Policy in the context of the post Cold War international scenario.

In short

India's Look East Policy, launched after the Cold War and the 1991 crisis, succeeded more strategically than economically, making India central to ASEAN-led forums while trade deficits and stalled corridors limited gains. India-ASEAN trade reached about USD 121 billion in 2023-24, yet the deficit kept India out of RCEP.

Model answer

Ghissu Editorial · Verified 4 Oct 2026

Introduction
The Soviet collapse and the 1991 balance-of-payments crisis pushed P.V. Narasimha Rao to launch the Look East Policy, turning India towards Southeast Asia's growth and Asia's new balance of power.
Economic Dimension: Trade Gains and Gaps
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Integration

India rose from ASEAN sectoral partner (1992) to full dialogue partner (1995), and then to the ASEAN-India FTA in goods (2010) and in services and investment (2015).

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Trade growth

India-ASEAN trade reached about USD 121 billion in 2023-24 (Commerce Ministry), and Singapore became a leading source of FDI.

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Deficit and delays

A widening trade deficit kept India out of RCEP (2019) and led to a review of the goods FTA, while the Trilateral Highway and Kaladan project lag, leaving the Northeast short of gains.

Strategic Dimension in the Post-Cold War Order
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Wider canvas

The second phase extended the policy from trade to security and from ASEAN to Japan, South Korea and Australia.

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Balancing China

ONGC Videsh's exploration with Vietnam and the India-Japan civil nuclear deal (2016) helped build a multipolar Asia rather than a China-centred one.

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Maritime role

SIMBEX with Singapore and Malabar with Japan made India a credible Indo-Pacific security partner.

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Slow delivery

Caution and implementation gaps led to its 2014 relaunch as Act East.

Conclusion
The Look East Policy succeeded strategically more than economically, making India central to ASEAN-led forums while deficits and stalled corridors limited trade gains. Act East now carries that agenda towards a leading Indo-Pacific role.

This model answer is indicative and the model can make mistakes; please verify key facts independently.

Hand-drawn map: India's Look East partners. Marked: Singapore.
Map: India's Look East partners
Hand-drawn diagram: Look East to Act East. Look East to Act East. Diagram (timeline): Look East to Act East; 1991; Look East launched; 1996; ASEAN Regional Forum; 2003; Phase two: East Asia; 2005; East Asia Summit; 2012; ASEAN strategic partner; 2014
Diagram: Look East to Act East

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