Look (Act) East Policy and Northeast India Achievements, Expectations and Realities

Abstract

The government as well as a large section of experts claimed that the Look (Act) East Policy (LEP) could become an instrument of economic development for Northeast India through the expansion of trade and investments to the East and Southeast Asian countries. The claim is not only due to the strategic location of Northeast India but also to the abundant resources and potential for trade in the region. In this light, the present paper examines the achievements of Northeast India in terms of expansion of trade and investments during three decades of the LEP. The paper argues that the policy has failed to augment exports and also could not contribute to the economic development of the region as the region still continues to decelerate in socio-economic parameters, largely depending on central grants and aid. Moreover, Northeast India could attract a negligible amount of foreign direct investment even after three decades of economic reforms and the LEP. Finally, the paper also made a reality check of the ‘export-led growth’ strategy for the region, especially under the aegis of Act East Policy, given the stress on ‘connectivity’ development projects with South Asia, East Asia and Southeast Asia, where Northeast India is centrally located.