ABSTRACT
This chapter examines the different phases of India's Look East Policy (LEP) and suggests that a close cooperation between India and China could help the 'Act East focus' in achieving a win-win situation for both the nations while at the same time keeping India's diplomatic autonomy in the context of US rebalance. The simultaneous rise of China and India exemplified Asia's dramatic resurgence in the global system. China's capital, technology and market are something that might be attractive to India. Till now, the development gap between East Asia and South Asia indicates very weak economic ties between the two regions. While both the regions depend on Western markets, there is no vertical integration of industrial production structure in them. It may be noted that although the export-oriented manufacturing industries of East Asia have strong ability to connect with the local industry, their ability is not strong enough to cover South Asia.
