The Indo-Pacific region’s strategic importance lies in its role in global trade and energy supply. Strengthening multilateral institutions is crucial to maintain a balance of power amid China’s growing assertiveness. Post the change in the US administration and the pandemic’s impact on the world order, restoring multilateralism is emphasized. The Regional Comprehensive Economic Partnership (RCEP) plays a vital role in this multilateral order for the Indo-Pacific. India’s “Act East Policy” is an essential instrument for pursuing its interests in the region. However, India chose to opt out of RCEP, citing concerns about bias favoring China’s interests. This paper explores India’s significance in the Indo-Pacific and analyzes the implications of its decision on RCEP and the “Act-East Asia Policy.” India’s stance has broader implications for regional economic integration and its ability to balance China’s influence while shaping the Indo-Pacific’s evolving dynamics.