Bilateral trade between Northeast India and Myanmar can be raised significantly to strengthen economic ties between the two countries

Bilateral trade between Northeast India and Myanmar can be raised significantly to the benefit of businesses at both sides of the border, India Consul General Mr. Nandan Singh Bhaisora said during a Mandalay meeting to strengthen economic ties between the two countries.

The meeting included businessmen from India as well as Mandalay region, Chin state and Sagaing Region. It was held ahead of the launch of the India-Myanmar Chamber of Commerce, which took place in Yangon on November 1.

While India is an important ally and facilitator for Myanmar in its dealings with the West, Myanmar is also significant for India when communicating with ASEAN, he said.

The move comes amid dwindling border trade between the two countries. During the 2016-17 fiscal year, border trade between India and Myanmar totaled $76.4 million. For the first six months of the current 2017-18 fiscal year, trade amounted to $32.7 million compared to $48.2 million during the same period last year.

“This year, trade volumes decreased due to slow trading activity at the Tamu border trade zone,” Mr Bhaisora said.

Currently, India is among the top ten investors in Myanmar with approved foreign direct investments amounting to $732.6 million and a total of 23 firms present in the country .”Myanmar is rich in natural resources and is among the fastest growing ASEAN nations. More than half the population is below 30 and actively finding jobs,” Mr Bhaisora said.

“Last month, India’s Prime Minister Narendra Modi visited Myanmar. Many MoUs, including in marine security, cultural exchange, marine conservation, healthcare, education, and cooperation between election commissions were signed during that visit. I hope a better relationship can be established between business organisations from our two countries,” he said.

As such, seven sectors in Myanmar have been identified in which India can contribute its expertise. They include information technology, microfinance, tourism, health, electricity and electrical goods, textiles and handicraft and university education.

Chin State and Sagaing Region, which share a border with India, will benefit the most from stronger trade ties with the Indians. “In Myanmar, there are two kinds of trade - border trade and trading under contracts. Only big firms can do business under contract trading but every one can participate in border trade,” said U Aung Than, president of Region Federation of Chamber of Commerce and Industries.

"For good border trade, we need good road connectivity. The reason for the rising China-Myanmar trade is good roads,” U Aung Than added.

To leverage on these good growth fundamentals, Myanmar now needs to invest in better technologies to increase agricultural products and workers’ income. India can facilitate in this process, he added.

(The Myanmar Times: https://www.mmtimes.com/news/india-strengthens-ties-myanmar-amid-falling-trade.html )

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