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

 

Category : Social Sciences | Answer: 1 11 Months Ago

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Situation of India just after the cold war

  • Disintegration of USSR – India lost a powerful strategic and economic partner.
  • BoP problems in India – India was facing its worst current account deficit problems at that time which compelled India to be more open to international economy according to IMF conditionality.
  • Low penetration of Indian goods in Western markets – Indian products lacked competitiveness in western markets due to lack of quality and also due to strained ties with Western Bloc during cold war period.

All these compelled India to find new strategic and economic partners in order to improve India’s exports, protect trade routes and build trust among countries. East Asian economies due to their fast economic growth, geographically strategic locations, and historical and cultural ties with India became the natural choice for India while looking for new partners in a changed world order. Hence Look East Policy became important in those days.

Due to many structural problems and otherwise, India though could not achieve fully its desired goals of Look East policy, the policy still has proved to be successful in many ways and has paved way for newly envisaged policy of Act East.

  • It has helped India garner support for a permanent seat at UN Security Council from many countries.
  • It has helped India form South-South co-operation at many International fora such as WTO and climate change talks.
  • Helped India increase trade with many of these countries. – India has also signed an FTA with ASEAN.
  • Helped India to have reliable partners on important Sea lanes of communication such as Malacca Straits.
  • Has given boost to Indian trade and economy along with creation of jobs and encouraging people to people contacts.
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