Economic diplomacy is a form of diplomacy that utilises a country’s economic tools to advance its national interests, covering all the international economic activities of a country. India’s “Act East Policy” was launched in 2014 by Prime Minister Narendra Modi, at the 2014 ASEAN-India Summit held in Myanmar, representing a significant shift in the country’s foreign policy framework, placing economic diplomacy at the core of its engagement with East and Southeast Asia. This paper examines Indian economic diplomacy through a case study of the Act East Policy, analysing its objectives, and outcomes in strengthening India’s economic, strategic, and institutional ties with the ASEAN region and the broader Indo-Pacific. By evaluating the various dynamics and mechanisms of economic cooperation and integration within the Act East policy, with particular focus on “ASEAN PLUS SIX” Regional Framework, the study aims to assess how these partnerships have improved trade, investment and commercial ties within the region. It further assesses the challenges confronting the policy, including infrastructural constraints, trade imbalances, geopolitical competition, and implementation gaps. By adopting a qualitative and analytical approach, the paper evaluates the effectiveness of the Act East Policy as a tool of economic diplomacy. The overall objective of the paper is to evaluate the various achievements, and challenges faced by the Act East policy, while also giving recommendations for ensuring its success in establishing India as a prominent economic player in the region. Moreover, this research paper would help policymakers, administrators, academicians, researchers and students in understanding the dynamics of Indian economic diplomacy and its implications for India’s Act East Policy.