ABSTRACT
This chapter examines the impact of India's entry into the Association of Southeast Asian Nations (ASEAN) with a special reference to the northeast region of India. It focuses on how the trading arrangements with the ASEAN help in fulfilling that objective. The Look East Policy signified a shift from India's traditional policy of non-alignment and multilateralism towards a policy of strategic alliance with the East and the Southeast Asian bloc of countries. India's adherence to economic sub-regionalism has become a new dimension in India's economic diplomacy. The ascendancy of China as a powerful force in the region is a major concern for India. China is seen as 'the principal source of insecurity and the greatest potential threat to India's long-term interests'. Land-locked countries tend to engage in border trade with neighbouring countries. Border trade should play an important role for the northeast region since 98 percent of its border is an international border shared with Myanmar, Bangladesh, China, and Bhutan.
