A bilateral Trade Agreement was signed in 1970. Bilateral trade has been growing steadily to reach US$2178.44 million (2016-17), of which Indian exports amounted to US$ 1111.19 million and Indian’s imports to US$1067.25 million.
India is the fifth largest trading partner of Myanmar but trade remains below potential. Agriculture sector dominates trade, particularly supply of beans & pulses to India ($ 809million, 2016-17) and timber ($ 156 million).
SAARC and Myanmar
Myanmar has been a responsible member of ASEAN since 1997. In May 2008 Myanmar had formally requested to be included in SAARC which did not materialize.
Probably because, at that time, it was ruled by a military junta that faced international criticism for suppressing democratic forces and imprisoning its pro-democracy leader and Nobel laureate Aung San Suu Kyi.
Though, subsequently it was given a status of observer along with eight other nations which include China, US and EU.
A lot of positive changes have taken place since the restoration of democracy since 2011 and hence the time is now ripe and opportune to take Myanmar into the SAARC folds which would prove to be a win-win situation for both at this stage.
Exports & Imports
India’s exports to Myanmar include sugar ($ 424 million), pharmaceuticals ($ 184 million), etc. Border trade via Moreh and Zawkhatar reached to $ 87.89 million; Indian exports being $ 24.44 million and Indian imports being $ 63.46 million.
India is presently the tenth largest investor with an approved investment of US$ 740.64 million by 25 Indian companies (as of 30 Jun 2017).
Investments
Most of India’s investments have been in oil & gas sector. 100% FDI is allowed in select sectors. Indian companies have evinced interest in investing in Myanmar and major contracts have been won by Indian companies.
Besides normal trade, both sides have also taken steps to bolster trade across the land border.
Cooperation in the Banking Sector
Cooperation in the banking sector is crucial for investment and trade.
United Bank of India signed banking agreements with banks of Myanmar (MFTB, MICB, MEB, and 9 private banks) to facilitate bilateral trade.
United Bank of India, Indian Overseas Bank, EXIM bank and State Bank of India have representative offices in Yangon.
In March 2016, State Bank of India was awarded a Commercial Banking License and commenced operations from 3 October 2016.
The Rohingya Crisis
The Rohingya refugee crisis refers to the mass migration of Rohingyas (Rohingya Muslim people) from Myanmar (Burma) to Bangladesh, Malaysia, Thailand and Indonesia.
The conflict involving Buddhists and Muslims in the Rakhine province has been simmering for a few years.
In the last week of August, 2017, the Arakan Rohingya Salvation Army (ARSA, now designated as ‘terrorists’) launched a major attack on police posts, in Rakhine state, resulting in significant casualties.
India and Myanmar in December 2017signed an agreement for socio-economic development of Myanmar’s violence hit Rakhine state.
This MoU is the first government to government agreement signed by the Ministry of Social Welfare, Relief and Resettlement of Myanmar with a cooperation partner focussed on socio-economic development and livelihood initiatives in Rakhine State.
Energy Relations
Myanmar is an important partner in India’s energy relations with other countries.
MoS for Petroleum & Natural Gas, Dharmendra Pradhan visited Myanmar from 20-24 Feb 2017 during which both sides discussed opportunities for cooperation in varied areas.
