$ 12 billion in 2002.

2.2.4. Taking the Look East Forward: Look East 2.0 or the New Look East

While the focus of First phase of Look East policy was primarily on economic engagement, in the second phase along with deepening of the economic ties, strategic & domestic dimensions gained salience.

♤ Thus the three guiding parameters for Look East 2.0 were-

o Deeper & wider economic engagements- Deeper economic engagements would involve establishing institutional linkages between India & ASEAN group of countries.2010- India signed a Free Trade Agreement (FTA) with ASEAN in goods. (This is the first trade bloc with which India finalized a FTA). In 2012, trade between India and ASEAN stood at $80 billion. Following the implementation of FTA in goods, trade grew by 41 per cent in 2011-12. Two-way flows in investments have also grown rapidly to reach $43 billion over the past decade.

o Strategic & Security Component- The phenomenal rise of China has been a cause of concern for many ASEAN countries & also for other East Asian one’s including Japan, South Korea etc. The rise of China has been accompanied by its growing assertiveness in its backyard is seen in the frequency with which it has asserted claims in south china sea & east china sea. These countries view India as a possible partner in their effort to maintain balance of power & peace in the region. India tacitly seems to share this concern as was reflected in PM’s speech in 2012- “India looks at ASEAN not simply as an institution of economic development but also as an integral part of India’s vision of stable, secure & prosperous Asia”. However, India does not see itself as adopting a confrontationist attitude with China, even as it steps up engagement with both ASEAN & countries like Japan.

o Domestic dimension- Looking East through the North East. India has lagged behind in economic growth, trade, industrialization & connectivity. Apart from this, the long porous borders have been a security issue. These factors coupled with ethnic issues have fuelled insurgency in the region. Establishing trade & connectivity links with South East Asian countries via North East has been one of the focus areas under the

Look East policy 2.0. This aimed at economically strengthening the region. For this purpose, the following initiatives came up in this period suggested-