India and Myanmar are neighbors sharing waters, forests, hills, Buddhist culture, cuisine, language, heritage of ethnic, linguistic and religious ties and a history of similar anti-colonial struggles. India’s ancient technique of meditation, Vipassana, is believed to have come from Myanmar. Historically, India and Myanmar’s regional interests have been shaped by the geo-strategic realities of sharing land and maritime borders in South Asia. Importantly, Myanmar is the sole ASEAN country that shares boundaries with India.
Hence, it can become India’s gateway to South East Asia, especially for greater economic engagement and high-level bilateral agreements under India’s “Act East”/“Neighbourhood First” and Myanmar’s “Look West” policies. Myanmar’s membership into ASEAN, BIMSTEC and Mekong Ganga Cooperation introduced a regional/sub-regional dimension to their bilateral relations.Both countries are committed to cooperate for preserving their territorial integrity and aspirations for peace and prosperity.
Myanmar is undergoing an economic transition within the context of an ongoing peace process, national reconciliation and economic recovery and India has emerged as the fastest growing major global economy. Thus, India’s growth story provides ample economic and investment opportunities for sharing experience/expertise of capacity building and skills development in Myanmar.
This motivated Indian President Ram Nath Kovind to visit Myanmar to promote the strengthening of bilateral economic and commercial relations via a multi-pronged approach that leverages both countries’ competencies (resources) and boosting engagement through increased connectivity, capacity-building and commercial/cultural exchanges. The President inaugurated the Fifth Enterprise India Show i.e. a convention of leading businesses and small/medium-size enterprises engaged in cutting-edge manufacturing to deepen business/banking ties and forge joint ventures.
He hailed Myanmar’s vibrant Indian community, present since the mid-19th century and mainly engaged export-import businesses and MNCs based in India, Singapore and Thailand, for providing an organic link between both countries. Since December 1, Myanmar has a visa-on-arrival policy for Indian air travelers.
Multiple institutional mechanisms and high-level visits have infused dynamism to their bilateral ties, especially vis-à-vis defense and security in terms of training for the army, air force and naval staff. Since, cooperation in the banking sector is crucial for trade and investment, the United Bank of India signed banking agreements with 12 banks in Myanmar. In March 2016, State Bank of India was awarded a Commercial Banking License and started operations from 3 October 2016.
In 1970, the first bilateral trade agreement was signed. Even though India is Myanmar’s fifth largest trading partner, the potential of India-Myanmar trade and investment relations have not been fully realized. Currently, India’s trade is dominated by import of beans, pulses and timber and exports of sugar and pharmaceuticals. As of 2017, India is the tenth largest investor with an approved investment of US$ 740.64 million across 25 Indian companies (mostly in the oil and gas sector). 100% FDI is allowed in select sectors and Myanmar is an important partner in India’s energy relations with other countries.
India has committed to providing grant-in-aid assistance valued at INR 4000 crores for the Kaladan Multimodal Transit Transport Project and the Trilateral Highway Project (an East-West corridor connecting Northeast India to Myanmar and Thailand). Aid includes development of roads, bridges, schools, health centres, institutions for higher learning and research etc. In the past, India has provided disaster relief and supported capacity-building for disaster risk mitigation after natural calamities like Cyclone Mora (2017), Komen (2015), Cyclone Nargis (2008) etc. During the President’s visit, one of the agreements that will be signed include provisions for prefabricated housing for displaced Rohingya refugees under the 2017 Rakhine State Development Programme.
Indian companies can offer the best products, services, digitally driven choices, finance, innovations and know-how for business partners, start-ups, incubators and customers in Myanmar. Tourism and trade is being bolstered through infrastructure projects for land-border crossing and connectivity between the commercial capitals. Ongoing efforts will possibly be complemented by a Motor Vehicles Agreement for people living along the border to source goods and services more efficiently and economically and exchange eco-friendly products made from bamboo, water hyacinth and other natural vegetation.
Two MoUs have been signed for (i) cooperation in science and technology and (ii) conducting judicial training and capacity building for Myanmar judges and law officers.New avenues of collaboration will be explored in the fields of digital economy, e-commerce, sustainable products and green solutions via new projects and proposals, especially in renewable energy, power, light engineering, agro-products and machinery, IT, pharmaceuticals, healthcare and education sectors. Thus, there is an overall commitment to fuel and diversify partnerships for mutual growth and development.
India Outbound
December 14, 2018
source https://indiaoutbound.org/strengthening-india-myanmar-relations/
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