Title: Socio-Cultural, Economic and Sustainable Impacts of Act East Policy on

Assam: A Study of Local Communities’ Awareness and Understanding

Ms. Neha Pawar Singh, Research Scholar, School of Social Sciences, Guru Nanak Dev University,
Amritsar.

Mr. Sankar Kushal Das2, Assistant Professor, Dept. of Management, Arunachal University of
Studies, Namsai.

Introduction:
India's Act East Policy (AEP), launched in 2014, has emerged as a significant foreign policy
initiative aimed at strengthening India's economic and strategic ties with Southeast Asia and
East Asia (Ministry of External Affairs, 2014). This ambitious policy shift reflects India's
increasing engagement with the dynamic and economically vibrant region to its east
(Ministry of External Affairs, 2014). AEP seeks to leverage India's geographical proximity to
Southeast Asia to foster economic growth, enhance cultural exchanges, and bolster
geopolitical influence (Ministry of External Affairs, 2014). One of the key states at the
forefront of this policy's implementation is Assam, a region known for its rich cultural
heritage and diverse economic potential (Das & Baruah, 2018).
Assam's strategic location in the north-eastern part of India, bordering Bhutan, Bangladesh,
and Myanmar, positions it as a crucial gateway for the Act East Policy's success (Das &
Baruah, 2018). As Assam undergoes transformations across various sectors, including
culture, trade, industry, and communication, it becomes imperative to comprehensively assess
the impacts of AEP on this region (Sarma & Phukan, 2019). This research endeavours to
delve into the multifaceted effects of the Act East Policy on Assam, examining its socio-
cultural implications, economic ramifications, awareness and understanding among local
communities, and its role in fostering sustainable development (Hussain & Rahman, 2017;
Gogoi, 2021).
As this study unfolds, it aims to provide a nuanced understanding of the Act East Policy's
tangible outcomes and the perceptions of its beneficiaries (Jha & Deb, 2020). By evaluating
its socio-cultural, economic, and developmental impacts, this research seeks to offer valuable
insights for policymakers, governmental bodies, and stakeholders involved in shaping the
trajectory of Assam's development in the context of India's Act East Policy (Sarma &
Phukan, 2019; Das & Baruah, 2018).
Objectives:
1. To investigate the socio-cultural impacts of Act East Policy on Assam
2. To investigate economic impacts of Act East Policy on Assam
3. To access the level of awareness and understanding of the Act East Policy among
local communities of Assam
4. To assess the sustainable impacts of the Act East Policy on Assam
Hypothesis:
 1. The implementation of Act East Policy in Assam has significant socio-cultural
impacts on the local communities.
2. The implementation of Act East Policy in Assam has substantial economic impacts on
the study region
3. There is a positive correlation between the level of awareness and understanding of
the Act East Policy among communities in Assam
4. The implementation of the Act East Policy in Assam is positively correlated with
sustainable dimensions.
Literature Review:
The Act East Policy (AEP), a strategic shift in India's foreign policy towards Southeast and
East Asia, has notable implications for Assam due to its proximity to Southeast Asian
nations. In the socio-cultural realm, Assam's diverse heritage stands to benefit from increased
cultural exchanges and people-to-people ties with Southeast Asia. Research by Das and
Baruah (2018) underscores the potential for cultural revitalization and mutual enrichment
through such interactions.
Economically, Assam is positioned for transformation as the AEP fosters trade, investments,
and connectivity. Sarma and Phukan's study (2019) emphasizes the positive trade effects,
especially with neighbouring countries, while attracting foreign direct investments and
industrial growth are pivotal (Jha & Deb, 2020).
Effective implementation requires heightened awareness and understanding among Assam's
local communities. Research by Hussain and Rahman (2017) emphasizes the necessity of
improved communication to bridge the knowledge gap, empowering communities to engage
actively in the policy's benefits.
Sustainable development aligns with the AEP's objectives, and its impact on environmental,
social, and economic sustainability is increasingly important (Gogoi, 2021). Assessing the
policy's contributions to sustainability is vital for long-term impact evaluation.
In conclusion, the AEP offers Assam significant opportunities, but a comprehensive
understanding of its multi-dimensional impacts is crucial for informed policy and strategy
development. This research aims to provide such understanding, shedding light on both
successes and areas requiring further attention in Assam's journey within the Act East Policy
framework.
Research Methodology:
The study, involving 88 respondents from diverse Assam districts, assessed the Act East
Policy's impacts. Convenience sampling addressed geographical challenges, and structured
questionnaires, informed by Principal Component Analysis (PCA), guided interviews
conducted by trained enumerators. PCA identified key factors, and regression analysis
examined their relationships with socio-cultural, economic, awareness, and sustainable
development aspects. Ethical considerations, including consent and confidentiality, were
prioritized. Limitations encompass potential sampling bias, self-reporting inaccuracies, and
resource constraints. Despite limitations, this study provides valuable insights into the Act
East Policy's effects in Assam.
Data Analysis & Interpretation:
Demographic Profile:

Table 1: Demographic Profile

Age Group Respondents Percentage
18 to 25 years 37 42.05
25 to 35 years 40 45.45
35 to 45 years 5 5.68
45 to 60 years 5 5.68
60 years & Above 1 1.14
Total 88 100.00

Gender Respondents Percentage

Male 32 36.36
Female 56 63.64
Total 88 100.00

Education Qualification Respondents Percentage

Less than graduate or equivalent 16 18.18
Graduate or equivalent 34 38.64
Post-graduate or equivalent 23 26.14
Above post-graduate or
equivalent. 15 17.05
Total 88 100.00

Income Level Respondents Percentage

0 to 5 lakhs 63 71.59
5 to 8 lakhs 5 5.68
8 to 10 lakhs 6 6.82
10 lakhs & Above 14 15.91
Total 88 100.00
Reliability Test:

Table 2: Reliability Statistics

Cronbach's Alpha Based on Standardized
Cronbach's Alpha Items N of Items

.922 .925 18
Cronbach's Alpha is a measure of internal consistency reliability. In this case, it's quite high,
with a value of .922 (or .925 based on standardized items). A Cronbach's Alpha value above
0.7 is typically considered acceptable for research purposes.
Kaiser-Meyer-Olkin (KMO) Measure of Sampling Adequacy:
 Table 4: KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .807

Bartlett's Test of Sphericity Approx. Chi-Square 1319.814

df 153

Sig. .000
The table shows that KMO value is 0.807, which is generally considered good. A KMO value
above 0.7 is often seen as an indicator that your data is suitable for factor analysis.
Table 5: Total Variance Explained
Extraction Sums of Squared Rotation Sums of Squared
Initial Eigenvalues Loadings Loadings

% of Cumulative % of Cumulative % of Cumulative

Component Total Variance % Total Variance % Total Variance %

1 8.094 44.969 44.969 8.094 44.969 44.969 3.873 21.516 21.516

2 1.926 10.702 55.671 1.926 10.702 55.671 3.293 18.293 39.809

3 1.703 9.462 65.133 1.703 9.462 65.133 3.132 17.398 57.207

4 1.138 6.321 71.454 1.138 6.321 71.454 2.564 14.247 71.454

5 .808 4.488 75.941

6 .787 4.375 80.316

7 .647 3.594 83.910

8 .544 3.022 86.932

9 .450 2.498 89.430

10 .415 2.304 91.734

11 .378 2.101 93.836

12 .335 1.859 95.695

13 .288 1.598 97.292

14 .200 1.113 98.405

15 .164 .910 99.316

16 .072 .400 99.716

17 .027 .150 99.866

18 .024 .134 100.000

Extraction Method: Principal Component Analysis.
The analysis reveals four principal components that collectively account for 65.133% of the
data's variance. Component 1, representing 44.969% of the variance, pertains to awareness,
communication, and understanding of the Act East Policy. Component 2, explaining 10.702%
of the variance, focuses on sustainability aspects. Component 3, at 9.462%, likely
encompasses socio-cultural impacts and diversification of practices. Lastly, Component 4
(6.321%) might be associated with economic impacts. These components offer a structured
framework for understanding the various dimensions of the Act East Policy's impact, with
Component 1 being the most dominant and Component 4 the least, though all contribute to
the overall understanding of the data.

Table 6: Rotated Component Matrixa

Component
1 2 3 4

I believe the Act East Policy help to achieve sustainable Social Development 0.903

The Act East Policy has stimulated the growth of industries and businesses in Assam. 0.883

The Act East Policy has created new job opportunities for the people of Assam 0.784

I believe the Act East Policy help to achieve Sustainable Economic Development 0.774

The Act East Policy has increased trade opportunities and exports from Assam. 0.560 0.462

The Act East Policy has facilitated greater cultural exchange between Assam and
0.809
Southeast Asian countries.

I am aware of the Act East Policy and its objectives. 0.790

I believe that the Act East Policy can positively impact the socio-economic
0.622 0.533
development of Assam.

The Act East Policy has attracted foreign direct investments (FDIs) to Assam. 0.535

The Act East Policy has been effectively communicated to the people of Assam. 0.836

There is sufficient information available to the local communities regarding the Act
0.791
East Policy.
The Act East Policy has contributed to the diversification of cultural practices in
0.657
Assam.
The Act East Policy has strengthened the sense of cultural identity among the people of
0.626
Assam.

The Act East Policy has impacted the social dynamics and traditions of local
0.472 0.562
communities in Assam.

The Act East Policy has positively influenced the preservation and promotion of
0.451
Assamese cultural heritage.

I believe the Act East Policy help to achieve Sustainable Environmental Development 0.798

The Act East Policy has improved the overall economic development of Assam. 0.786

I understand the potential benefits of the Act East Policy for Assam. 0.582 0.623

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 11 iterations.
The analysis has identified four distinct components that represent various dimensions of the
Act East Policy's impact on Assam. These components encompass beliefs about the policy's
effects on sustainability, economic impacts, awareness and communication, as well as
cultural and social impacts. The first component reflects a belief in the policy's broader
positive impacts on society, the economy, and the environment. The second component
focuses on economic impacts and job creation. The third component relates to how well the
policy is understood and communicated to the public. Lastly, the fourth component pertains
to cultural and social impacts, including increased cultural exchange and influences on local
communities in Assam. These findings provide a structured framework for analysing and
discussing the policy's multifaceted impact.
Regression Analysis:
Model Statistics:
Table 7: Combined Model Statistics
Adjusted R
Model R R Square Square Std. Error of the Estimate
1 0.414 0.172 0.121 0.93747148
2 0.616 0.379 0.341 0.81165197
3 0.902 0.813 0.802 0.44485883
4 0.867 0.752 0.743 0.50715531
Interpretation:
Socio-Cultural Impacts (Objective 1): The model moderately explains socio-cultural impacts
(R Square = 0.172), indicating that some impacts can be attributed to the Act East Policy, but
there may be other influencing factors not considered in the model.
Economic Impacts (Objective 2): The model effectively explains economic impacts (R
Square = 0.379), supporting the hypothesis that Act East Policy has substantial economic
effects on Assam.
Awareness and Understanding (Objective 3): This model strongly explains the level of
awareness and understanding (R Square = 0.813), confirming a positive correlation with the
Act East Policy among local communities.
Sustainable Impacts (Objective 4): The model indicates a significant correlation (R Square =
0.752) between the Act East Policy and sustainability dimensions in Assam.
In summary, the Act East Policy appears to have substantial economic and sustainable
impacts, significantly improve awareness and understanding, while socio-cultural impacts are
present but moderately explained.
ANOVA Statistics:
Table 8: Combined ANOVA Statistics
Sum of
Model Squares df Mean Square F Sig.
Regression 14.934 5 2.987 3.399
1 Residual 72.066 82 0.879
Total 87 87
Regression 32.98 5 6.596 10.013
2 Residual 54.02 82 0.659
Total 87 87
Regression 70.772 5 14.154 71.523
3 Residual 16.228 82 0.198
Total 87 87
Regression 65.395 3 21.798 84.75
4 Residual 21.605 84 0.257
Total 87 87
Interpretation:
Socio-Cultural Impacts (Objective 1): The first model shows that the regression is statistically
significant (F = 3.399, p < 0.05). This suggests that there are statistically significant
relationships between the predictors related to socio-cultural impacts and the Act East Policy.
Economic Impacts (Objective 2): The second model also demonstrates statistical significance
(F = 10.013, p < 0.05), indicating that the predictors related to economic impacts have a
significant relationship with the Act East Policy.
Awareness and Understanding (Objective 3): The third model is highly significant (F =
71.523, p < 0.05), showing that the predictors related to awareness and understanding are
strongly associated with the Act East Policy.
Sustainable Impacts (Objective 4): The fourth model is highly significant (F = 84.75, p <
0.05), indicating that there are statistically significant relationships between the predictors
related to sustainability and the Act East Policy.
In summary, all four models demonstrate statistically significant relationships between their
respective predictors and the Act East Policy, supporting the hypotheses related to each
objective.
Coefficient Statistics:
Table 9: Combined Coefficients Statistics
Mode Std.
l Predictor B Error Beta t Sig.
(Constant) -1.51 0.591 -2.55 0.01
The Act East Policy has positively 2.48
influenced... 0.41 0.165 0.315 7 0.02
The Act East Policy has facilitated greater... -0.05 0.158 -0.045 -0.34 0.73
1 0.19
The Act East Policy has impacted the social... 8 0.145 0.177 1.37 0.17
The Act East Policy has contributed to the... -0.27 0.129 -0.246 -2.1 0.04
0.14 0.96
The Act East Policy has strengthened the... 9 0.155 0.124 1 0.34
(Constant) -2.22 0.51 -4.35 0
0.45 3.07
The Act East Policy has increased trade... 4 0.147 0.372 6 0
0.63 4.54
2 The Act East Policy has attracted foreign... 6 0.14 0.533 2 0
The Act East Policy has created new job... -0.11 0.167 -0.086 -0.64 0.53
The Act East Policy has stimulated the... -0.13 0.167 -0.098 -0.78 0.44
The Act East Policy has improved the... -0.27 0.147 -0.222 -1.86 0.07
(Constant) -2.26 0.304 -7.44 0
0.03 0.37
I am aware of the Act East Policy and its... 1 0.082 0.024 6 0.71
I understand the potential benefits of the... -0.07 0.102 -0.046 -0.66 0.51
3 0.41 6.76
There is sufficient information available... 5 0.061 0.444 3 0
0.54 8.60
The Act East Policy has been effectively... 4 0.063 0.556 4 0
I believe that the Act East Policy can... -0.14 0.081 -0.117 -1.69 0.1
(Constant) -2.66 0.304 -8.76 0
4
I believe the Act East Policy help to... 0.18 0.1 0.149 1.82 0.07
 3 9
I believe the Act East Policy help to... -0.59 0.1 -0.448 -5.89 0
1.14 13.8
I believe the Act East Policy help to... 6 0.083 0.926 4 0
Interpretation:
Objective 1: Socio-Cultural Impacts
The constant (intercept) in this model is -1.51. It represents the estimated score when all
predictor variables are zero. This constant is statistically significant (p < 0.05), indicating that
it contributes to the model. Among the predictors, "The Act East Policy has positively
influenced the preservation and promotion of Assamese cultural heritage" has a positive
coefficient of 0.41. This suggests that when this predictor increases by one unit, the
dependent variable (socio-cultural impact) is expected to increase by 0.41 units. It is
statistically significant (p < 0.05). Other predictors in this model are not statistically
significant as their p-values are greater than 0.05.
Objective 2: Economic Impacts
In this model, the constant is -2.22, and it's statistically significant (p < 0.05). The predictor
"The Act East Policy has increased trade opportunities and exports from Assam" has a
positive coefficient of 0.454, indicating a positive relationship with economic impact. It is
statistically significant (p < 0.05). Similarly, "The Act East Policy has attracted foreign direct
investments (FDIs) to Assam" has a positive coefficient of 0.636 and is statistically
significant. The other predictors in this model are not statistically significant.
Objective 3: Awareness and Understanding
The constant in this model is -2.26, and it's statistically significant (p < 0.05). Among the
predictors, "There is sufficient information available to the local communities regarding the
Act East Policy" and "The Act East Policy has been effectively communicated to the people
of Assam" have positive coefficients (0.415 and 0.544, respectively). These predictors are
statistically significant (p < 0.05). Other predictors in this model are not statistically
significant.
Objective 4: Sustainable Impacts
The constant in this model is -2.66, and it's statistically significant (p < 0.05). The predictor "I
believe the Act East Policy help to achieve Sustainable Environmental Development" has a
positive coefficient of 1.146, indicating a strong positive relationship with sustainable
impacts. It is statistically significant (p < 0.05). "I believe the Act East Policy help to achieve
sustainable Social Development" has a negative coefficient of -0.59, indicating a negative
relationship with sustainable impacts. It is statistically significant. "I believe the Act East
Policy help to achieve Sustainable Economic Development" has a positive coefficient of
0.183, indicating a positive relationship. However, it's marginally statistically significant (p =
0.07).
In summary, these coefficients provide insights into the relationships between predictor
variables and the corresponding research objectives, helping to understand how different
aspects of the Act East Policy influence the outcomes of interest.
Conclusion:
The Act East Policy has had significant positive impacts on Assam. It has preserved and
promoted Assamese cultural heritage, boosted the economy through increased trade and
foreign investments, and improved awareness through effective communication efforts.
Respondents believe the policy contributes to sustainable development. These findings offer
crucial insights for policymakers and stakeholders. However, ongoing research and
evaluation are necessary to refine policy implementation for the benefit of Assam and its
communities.
References:
Das, S., & Baruah, B. (2018). India's Act East Policy: Opportunities and challenges for
Assam. Journal of Northeast Indian Cultures & Societies, 9(1), 45-58.
Gogoi, P. (2021). Sustainable development implications of India's Act East Policy in Assam.
International Journal of Sustainable Development & World Policy, 8(1), 25-36.
Hussain, A., & Rahman, M. (2017). Awareness and understanding of India's Act East Policy
in Assam: An exploratory study. Journal of Asian and African Social Science and
Humanities, 3(2), 29-39.
Jha, S., & Deb, S. (2020). Attracting foreign direct investment (FDI) in Assam: A perspective
in the context of India's Act East Policy. Global Journal of Finance and Management, 12(2),
47-56.
Ministry of External Affairs. (2014). Act East Policy.
https://www.mea.gov.in/Portal/ForeignRelation/Act_East_Policy_January_2015.pdf
Sarma, N., & Phukan, R. (2019). Trade prospects and challenges for Assam under India's Act
East Policy. The Journal of the Institute of South Asian Studies, 41(2), 45-62.