Bairabi-Sairang Railway Line and India’s Act East Policy Introduction

• A railway, first conceptualized 26 years ago, is being turned into a reality and is now ready for operation in Mizoram’s capital, Aizawl. The Bairabi-Sairang railway line, stretching 51.38 km, has been completed and is considered an engineering marvel, traversing one of India’s most difficult terrains. 
• The Bairabi-Sairang line is a key infrastructure initiative under the Centre’s Act East Policy to enhance connectivity and economic integration in the northeast region. 
• The line is equipped with 48 tunnels, spanning nearly 13 km, and more than 40 bridges. Among them, Bridge No. 196 stands out, with a height of 104 metres above the ground, making it taller than Delhi’s Qutub Minar by 42 metres. The rail line has been built through dense forests, steep hills, and landslide-prone zones, making it a feat of persistence and planning.

Significance of the Project

• The Aizawl-Silchar highway via Sairang currently takes about five hours to travel. However, with the new railway line, including a proposed Rajdhani Express, travel time is expected to be reduced to just 1.5 hours.
• Transportation Costs: The project is set to significantly lower transportation costs and reduce dependency on trucks for goods movement.
• Economic Impact: The project is anticipated to boost tourism, enhance trade, and improve goods movement across the region.
• Transhipment Hub: Sairang is expected to become a key location for the transhipment of goods from the India-funded Sittwe Port in Myanmar.

India’s Act East Policy: Ambitious Goals and Ongoing Challenges

• The Evolution from Look East to Act East Policy: After the Cold War ended, many countries reassessed their economic and strategic policies to adapt to new geopolitical realities. India, recognizing the growing significance of Southeast Asia and its increasing global influence, launched the Look East Policy in 1992. 

• This policy aimed to strengthen economic ties and build strategic relations with East and Southeast Asian nations, alongside US allies. The Look East Policy marked a shift towards a more regionally integrated approach for India in the post-Cold War era.

• • • In 2014, this policy was upgraded to the Act East Policy to give it a more proactive and expansive focus. The Act East Policy is designed to cultivate extensive economic and strategic relations with the nations of Southeast Asia, East Asia, and the Indo-Pacific region. This upgrade reflects India’s desire to expand its influence in the region, ensuring closer economic ties and enhancing security cooperation.

• The Foundation of Act East Policy: The 4 C’s: The Act East Policy is guided by four key principles known as the 4 C’s:

• • Culture: Strengthening cultural ties and people-to-people relations with Southeast Asia.
  • Commerce: Enhancing economic relations and trade with ASEAN countries.
  • Connectivity: Improving infrastructure linkages for better trade and mobility.
  • Capacity Building: Strengthening cooperation in areas like education, technology, and human resources development.

Comparing Look East and Act East Policies

• Scope: From Economic Focus to a Comprehensive Approach

• Look East Policy: The Look East Policy, introduced in 1992, had a more narrow focus, primarily aiming to boost economic cooperation with Southeast Asia. After the fall of the USSR, India recognized the need to diversify its economic and strategic ties, and Southeast Asia presented an ideal opportunity for trade and investment. The policy mainly focused on fostering economic relations and improving trade links with ASEAN countries and other East Asian nations.

• Act East Policy: In contrast, the Act East Policy, launched in 2014, has a much broader scope. While it continues to prioritize economic cooperation, it also places significant emphasis on infrastructure development, strategic relations, and security cooperation. The Act East Policy seeks to establish stronger connectivity between India and the Southeast Asia region through rail and road networks, as well as energy and trade partnerships. Moreover, it aims to address geopolitical challenges, such as China’s growing influence in the South China Sea and the Indian Ocean, and deepen India’s engagement with East Asian nations like Japan and South Korea.

• Objectives: Economic Ties vs. Geopolitical Strategy

• Look East Policy: The primary aim of the Look East Policy was to boost trade and investment relations with Southeast Asia. India was eager to integrate itself into the regional economic architecture, especially after the collapse of the Soviet Union. The policy was designed to enhance India’s economic growth by tapping into the growing markets of Southeast Asia, with a particular focus on trade and investment flows.

• Act East Policy: While the Act East Policy retains the economic focus, it also addresses geopolitical challenges in a changing world. The rise of China and its growing dominance in the South China Sea and Indian Ocean prompted India to re-evaluate its approach to the region. The Act East Policy aims to counterbalance China’s influence by strengthening India’s strategic and security relationships with Southeast Asian nations. Additionally, the policy focuses on fostering stronger regional cooperation through frameworks like the ASEAN Regional Forum (ARF) and the East Asia Summit.

• Focus on North-East India: A Shift in Priorities

• Look East Policy: Under the Look East Policy, the development of India’s northeastern states received little attention. Although the region is strategically located and shares borders with many Southeast Asian countries, it was largely neglected in the initial phase of India’s engagement with East Asia. The Look East Policy primarily focused on economic diplomacy with Southeast Asia, without emphasizing the North-East’s development as a crucial element of India’s connectivity to the region.

• Act East Policy: In contrast, the Act East Policy has placed a strong emphasis on the development of North-East India. The northeastern states are seen as India’s gateway to Southeast Asia, and the policy aims to develop infrastructure and connectivity in the region to enhance trade and economic cooperation with neighboring countries like Myanmar, Thailand, and Bangladesh. Projects like the Kaladan Multi-Modal Transit Transport Project and the Trilateral Highway reflect this focus on regional connectivity and development.

• People-to-People Ties: From Economic to Cultural Exchange

• Look East Policy: The Look East Policy largely neglected people-to-people exchanges and cultural ties. While the policy emphasized economic engagement, there was little focus on cultural diplomacy, linguistic connections, or religious ties between India and Southeast Asia. The policy was primarily driven by economic considerations, with limited attention to historical and cultural links.

• Act East Policy: The Act East Policy places a much stronger emphasis on people-to-people connections. It acknowledges that cultural ties, linguistic bonds, and religious similarities are key to building strong regional partnerships. The policy promotes cultural exchanges, educational collaborations, and tourism to foster mutual understanding and goodwill between India and its Southeast Asian neighbors. The cultural diplomacy aspect of the Act East Policy is increasingly seen as a critical factor in strengthening long-term regional relationships.

What is Major Progress Made Under India’s Act East Policy? 

• Strengthened Engagement with ASEAN Countries: India’s relationship with the Association of Southeast Asian Nations (ASEAN) has grown considerably under the Act East Policy. India is now the 4th largest trading partner of ASEAN, a clear indication of the strengthening economic ties between the two regions. 

• Southeast Asian countries view India’s involvement as a counterbalance to China’s increasing presence and expansionist policies in the region.

• • • To further deepen economic integration, India allocated $1 billion at the India-ASEAN Summit to promote connectivity and regional development. This funding is part of India’s broader commitment to fostering stronger trade links and supporting ASEAN’s economic and infrastructural growth.

• Cooperation on Regional Initiatives: Under the Act East Policy, India is leading a number of sub-regional initiatives and projects aimed at enhancing regional connectivity and cooperation. Some key projects include:

• BBIN Corridor: The BBIN (Bangladesh, Bhutan, India, Nepal) Corridor is an important project aimed at improving land transport links between these countries, enhancing regional trade and connectivity.

• Myanmar-Thailand Trilateral Highway: This highway is a critical infrastructure initiative that aims to connect India with Myanmar and Thailand, facilitating smoother transportation and better economic integration within the region.

• Kaladan Multi-Modal Project: The Kaladan Multi-Modal Project is a strategic infrastructure initiative designed to improve connectivity between India’s northeastern states and Myanmar. The project aims to create a transport corridor linking the Bay of Bengal with the landlocked regions of northeastern India. It involves a combination of road, water, and rail routes, with the Sittwe Port in Myanmar acting as a central hub.

• Transforming the North-East Region: The development of India’s North-East has been a key priority under the Act East Policy, as the region serves as India’s gateway to ASEAN and the broader Indo-Pacific. A major focus has been placed on improving infrastructure and regional connectivity.

• Key Developments in the North-East:

• Budget Allocation: The Indian government has increased its budgetary allocations for the region by 300% between 2014-15 and 2024-25, signaling a strong commitment to development.

• Infrastructure Growth: Over 10,000 km of highways and 800 km of railway tracks have been built, significantly enhancing connectivity within the region.

• Airports: Eight new airports have been established to improve air connectivity and boost regional trade and tourism.

• Japan’s Investment in the North-East: The Government of Japan has also committed Rs 13,000 crore for various ongoing and new projects in India’s North-East. Additionally, the India-Japan Act East Forum, established in 2017, focuses on economic modernization in the region.

• • • One key project is the Sairang railhead in Mizoram, which plays a strategic role in facilitating the transshipment of goods from India’s Sitwe Port in Myanmar. This will enhance connectivity and trade between India and Southeast Asia.

• Strengthening Defense Ties: India’s defense cooperation with East Asian countries has also expanded under the Act East Policy. Key developments include:

• India-Vietnam Defense Cooperation: In 2014, India and Vietnam signed a Memorandum of Understanding (MoU), which opened a line of credit for Vietnam to purchase defense equipment from India. This partnership highlights India’s growing defense cooperation with Southeast Asia.

• Joint Maritime and Military Exercises: Since 2015, India has been conducting joint maritime patrols and military exercises with ASEAN countries, improving regional security cooperation. These initiatives have been essential in fostering better defense ties and ensuring peace and stability in the Indo-Pacific region.

• Strengthening Ties with Russia: India has also extended its strategic outreach to the Far East, particularly Russia, as part of its Act East Policy.  India has announced a $1 billion line of credit for the development of the Russian Far East, which will help India access crucial energy resources and contribute to its economic growth. This partnership is vital for enhancing India’s energy security and fostering closer relations with Russia, an important player in the Indo-Pacific.

Challenges Hindering the Success of India’s Act East Policy

• Growing Influence and Tensions: One of the most significant challenges to the success of the Act East Policy is the growing influence of China in the Southeast Asia region. China’s economic clout, especially through initiatives like the Belt and Road Initiative (BRI), has significantly altered the geopolitical landscape, creating competition for India’s engagement with the region China’s increasing presence, including its growing influence over countries like Myanmar and Sri Lanka, poses a direct challenge to India’s interests in Southeast Asia. 

• • • Myanmar: China has increased its economic investments in Myanmar, including projects like the Kyaukpyu Port and the China-Myanmar Economic Corridor (CMEC). This has allowed China to expand its presence in Myanmar, reducing India’s influence in the region.
    • Sri Lanka: In Sri Lanka, China has provided significant infrastructure loans, including the Hambantota Port deal, which gave China control over a strategic location in the Indian Ocean.
    • Ethnic Chinese Communities: In Southeast Asia, the ethnic Chinese populations in countries like Malaysia, Singapore, and Indonesia amplify China’s influence through both cultural and business networks, making it harder for India to assert itself as a dominant player in the region.

•  Political Instability and Connectivity Hurdles: Myanmar plays a crucial role in India’s connectivity projects with Southeast Asia, particularly the India-Myanmar-Thailand Trilateral Highway and the Kaladan Multi-Modal Transit Transport Project. However, the ongoing political crisis and civil strife in Myanmar have severely affected these initiatives.  The instability in Myanmar has led to delays in critical infrastructure projects and raised security concerns. The instability disrupts cross-border trade, making it challenging for India to maintain seamless connectivity with Southeast Asia through Myanmar. 

• Slow Progress of Key Connectivity Projects: Several major infrastructure projects central to the Act East Policy have faced significant delays. These include the India-Myanmar-Thailand Trilateral Highway and the Kaladan Multi-Modal Transit Transport Project, which are vital for enhancing trade and connectivity between India and Southeast Asia.

• Challenges Facing Infrastructure Projects: The slow progress of these projects can be attributed to a mix of security issues, logistical hurdles, legal challenges, and land acquisition problems. While these projects are crucial for India’s economic integration with ASEAN countries, the ongoing delays undermine the country’s broader objectives of enhancing regional connectivity and promoting economic cooperation.

• Inadequate Infrastructure in Northeast India: For the Act East Policy to succeed, Northeast India must serve as a gateway to Southeast Asia. However, this region continues to suffer from inadequate infrastructure, particularly in terms of road, rail, and air connectivity. Only 800 km of railway tracks have been laid in the region since the launch of the Act East Policy—a far cry from the need for better, more extensive rail infrastructure. Although eight new airports have been established, the air connectivity between Northeast India and Southeast Asia remains limited. 

• • Ethnic Conflicts and Instability in Northeast India: The ethnic conflicts in states like Manipur pose significant threats to the objectives of the Act East Policy. 
    • Manipur, for example, has witnessed recurring ethnic violence between Meitei and Kuki communities, often escalating into large-scale disturbances that paralyze daily life and disrupt the regional economy.
    •  Nagaland has faced long-standing ethnic strife, particularly involving Nagas and Konyaks, impacting the development of infrastructure and local economic growth.

• Security Concerns and Cross-Border Movements: The instability in the Northeast also raises concerns about cross-border insurgent movements, arms smuggling, and drug trafficking, which complicate India’s efforts to build stronger ties with Southeast Asia. The lack of stability hinders the region’s economic growth, impedes foreign investment, and slows the pace of regional cooperation.

• Concerns Over India’s Approach to Minorities: There is rising concern in Southeast Asia about India’s treatment of its minority communities, particularly Muslims and Christians. Countries like Indonesia, Malaysia, Thailand, and Singapore have expressed disappointment over India’s approach to religious pluralism, with accusations of rising Hindu majoritarianism. These concerns have affected India’s soft power in the region.

• Impact on Diplomatic Relations: India’s attempts at cultural diplomacy, including Buddhist outreach, have not gained significant traction as inter-religious tensions have increased in the country. India’s religious dynamics have affected its public image in Southeast Asia, potentially hindering efforts to foster stronger people-to-people relations and cultural exchanges under the Act East Policy.

Way Forward 

• Expedite Flagship Projects for Connectivity and Integration: One of the most pressing tasks for the Indian government is to accelerate the completion of flagship projects that have already been announced, especially those outlined in the Delhi Declaration 2018. These projects are critical for improving connectivity and enhancing India’s economic integration with Southeast Asia.

• • • Digital Connectivity Projects: India should prioritize the completion of digital connectivity projects in countries like Cambodia, Lao PDR, Myanmar, and Vietnam. These initiatives will enhance technological integration and improve access to information and services across the region.
    • Trilateral Highway (TH): This project aims to improve road connectivity between India, Myanmar, and Thailand, facilitating the movement of goods and people, thus boosting regional trade and economic cooperation.
    • Trilateral Motor Vehicle Agreement (MVA): This agreement is crucial for allowing easier cross-border movement of vehicles and improving transportation links across the region.

• Empower States for Better Implementation of Act East Policy: The government should empower states by establishing a Northeast branch of NITI Aayog. This will help bridge the gaps between the Centre and states, ensuring smoother implementation of key projects and policies under the Act East framework. A more decentralized approach will allow local stakeholders to actively participate in regional economic development and connectivity efforts.

• Focus on Regional Groupings and Enhanced Negotiations: India should focus on strengthening regional groupings like BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation), which connects South Asia and Southeast Asia. BIMSTEC has the potential to drive greater economic cooperation and infrastructure development across these regions.

• • • BIMSTEC Motor Vehicle Agreement (MVA): India should work to expedite the negotiation process and finalize the BIMSTEC MVA, which will facilitate smoother land-based connectivity.
    • BIMSTEC Coastal Shipping Agreement: This agreement can boost maritime trade between member countries, creating a more efficient logistics network across the Bay of Bengal.
    • BIMSTEC Trade Facilitation Agreement (TFA): This agreement will enhance trade efficiency within the region by simplifying customs procedures and reducing trade barriers.

• Fast-Track Development Cooperation Projects: To ensure that development cooperation under the Act East Policy is implemented efficiently, the government must streamline bureaucratic procedures and reduce the documentation burden. 

• EXIM Bank of India: The government should ensure that the EXIM Bank opens branches in Southeast Asian countries, which would facilitate easier funding for development projects and provide financial services for Indian businesses looking to expand in the region.

• • • Enhanced Coordination: Coordination between the Prime Minister’s Office, Ministry of Finance, and the Ministry of External Affairs must be strengthened to ensure timely implementation of key initiatives under the Act East Policy.

• Immediate Opportunities: India must also capitalize on immediate opportunities that can provide quick wins under the Act East Policy: 

• • • International Flights: Establishing international flights from Imphal to other Southeast Asian countries, particularly for medical tourism, could create a significant boost to economic and cultural ties. Shija Hospital in Imphal is already a popular destination for health check-ups for people from Myanmar, and expanding air connectivity would strengthen this sector.
    • Expanding Outreach to Neighbors: India should expand the Act East Policy to include Bangladesh and Sri Lanka. Expanding outreach to these neighboring countries would help in better development of India’s Eastern and Northeastern states, and provide more opportunities for cross-border cooperation.

• A Proactive Strategy: As China continues to expand its presence in the Indo-Pacific, India needs to proactively offer viable alternatives and strengthen its own partnerships in critical sectors such as infrastructure, trade, and technology. India must focus on counterbalancing China’s influence by building stronger relationships with ASEAN, Japan, and other key regional powers. 

• Prioritize Peace and Stability in Northeast India: The stability of India’s Northeast is crucial to the success of the Act East Policy. Ongoing ethnic conflicts, insurgency, and cross-border issues in the region must be addressed for the policy’s objectives to be realized effectively.

• • Addressing ethnic conflicts and insurgency issues in states like Manipur and Nagaland is essential to creating a stable environment conducive to infrastructure development and regional cooperation.
  • Cross-border security challenges, such as insurgent movements and arms smuggling, must be addressed through regional security cooperation and better law enforcement strategies.