SYLLABUS
GS-2: India and its neighbourhood- relations.
Context: Recently, the Ninth Meeting of the India–Myanmar Joint Trade Committee (JTC) was held in Nay Pyi Taw, Myanmar.
Key Highlights of Meeting
- The meeting focused on expanding market access, streamlining financial transactions, promoting the Rupee–Kyat trade settlement mechanism, and maximising benefits under the ASEAN–India Trade in Goods Agreement (AITIGA).
- AITIGA is a Free Trade Agreement (FTA) between the ten member states of the Association of Southeast Asian Nations (ASEAN) and India, designed to reduce or eliminate customs tariffs and non-tariff barriers on physical goods traded between them.
- Discussions covered improving connectivity, upgrading border infrastructure, and reopening border trade posts to boost cross-border trade and movement.
- Identified multiple sectors for cooperation, including textiles, transport and connectivity, shipping, power, Information and Communication Technology (ICT), and Micro, Small and Medium Enterprises (MSMEs), to drive mutual growth.
- Both sides emphasised capacity building, customs and border management, and improved infrastructure as key enablers of sustained economic cooperation.
- Cooperation in health, pharmaceuticals, and agriculture was highlighted as essential for long-term gains and strengthening mutual support and collaboration.
- Reaffirmed the strategic importance of the Tamu–Moreh and Rhi–Zokhawthar border trade posts in facilitating cross-border trade.
- Tamu–Moreh and Rhi–Zokhawthar are the two primary operational border trade posts between India and Myanmar, facilitating essential land-based commerce and connectivity
India-Myanmar Relations
- India shares a long land border of over 1643 kms with Myanmar, as well as a maritime boundary in the Bay of Bengal.
- Four northeastern states, viz., Arunachal Pradesh, Nagaland, Manipur and Mizoram, have a boundary with Myanmar.
- The countries have shared religious, linguistic, and ethnic ties, with Myanmar being India’s only ASEAN neighbour and gateway to Southeast Asia.
- India aims to enhance cooperation with Myanmar under its ‘Act East’ and ‘Neighbourhood First’ policies.
- India’s Act East Policy (AEP) is a diplomatic initiative launched in November 2014 as a proactive upgrade to the 1991 “Look East Policy”. It seeks to promote economic cooperation, cultural ties, and strategic relationships with countries in the Indo-Pacific region.
- India’s Neighbourhood First Policy (NFP), launched in 2014, is a core diplomatic framework aimed at building cordial and synergetic relations with its immediate South Asian neighbours.
- Bilateral trade
- India and Myanmar reached USD 2.15 billion in bilateral trade during 2024–25, reflecting a strong and positive growth trajectory.
- Recognising the significant potential for further expansion, both sides agreed on a shared vision to scale bilateral trade to USD 5 billion by 2030.
- Development Cooperation
- India’s development assistance portfolio in Myanmar is now over US $1.75 billion. The bulk of this assistance is grant-funded.
- India has undertaken major connectivity projects in Myanmar, including the Kaladan Multimodal Transit Transport Project and the Trilateral Highway linking Northeast India with Myanmar and Thailand.
- Defence Cooperation
- Defence cooperation has been a strong pillar of bilateral relations between the two countries.
- India and Myanmar regularly conduct joint military exercises IMBEX (India–Myanmar Bilateral Exercise), which focuses on counter-insurgency and jungle warfare operations.
- Investment
- As of 31 March 2025, India is the 11th largest investor in Myanmar, with approved investments of US$782.821 million by 39 Indian enterprises, out of total foreign investments of US$96.05 billion from 53 countries.
- Disaster Relief
- Following the 7.7 magnitude earthquake in Myanmar on 28 March 2025, India launched Operation Brahma, deploying 9 military aircraft and 5 warships to deliver about 968 MT of humanitarian assistance and disaster relief.