India - Myanmar Relations

India - Myanmar Relations
Myanmar shares a long land border of over 1600 Km with India as well as a
maritime boundary in the Bay of Bengal. Four North-Eastern States viz. Arunachal
Pradesh, Nagaland, Manipur and Mizoram share international boundary with
Myanmar. Both countries share a heritage of religious, linguistic and ethnic ties.
Myanmar has a substantial population of Indian origin (est. 1.5- 2 million). Further,
Myanmar is our gateway to South East Asia and ASEAN with which we are seeking
greater economic integration through India’s 'Look East' and ‘Act East’ Policy.
Myanmar also offers us an alternative access route to the Northeast. Apart from
supply of pulses, possibilities of energy supply from offshore blocks in Myanmar and
business opportunities that emerging from an opening economy underpin bilateral
relations
India has a policy of strengthening improved relations with Myanmar. The
recent victory of the National League for Democracy (NLD) in the November 8, 2015
elections, in which the NLD won 255/323 seats (in the lower house) and 135/168
(upper house) apart from 475/630 (in regional/state Parliament) has further provided
opportunities to strengthen the engagement. Various institutional mechanisms have
infused dynamism to the growing and multi-faceted bilateral ties. The first meeting of
the India-Myanmar Joint Consultative Commission (JCC) co-chaired by EAM and
Myanmar FM was held on July 16, 2015 in New Delhi. The JCC has been
established as an umbrella mechanism to facilitate interaction between various line
ministries on the two sides. At the Secretary-level, these include Foreign Office
Consultations (FOC) at the level of Foreign Secretary/Deputy Foreign Minister (last
held at New Delhi in July 2014 and Nay Pyi Taw in July 2013) and National Level
Meeting (NLM) at the level of Home Secretary/ Deputy Home Minister (19th NLM held
in Nov 17-19, 2014, Yangon and 18th NLM on 28-29 Dec 2012, N. Delhi). Apart from
them, technical level and operational level meetings are held.
High-level Visits
There have been several high level visits: PM Rajiv Gandhi (1987), Sr Gen
Than Shwe (2004 and 2010), President Abdul Kalam (2006), Vice Senior Gen.
Maung Aye (2008), Vice President Ansari (2009), President U Thein Sein (Oct 2011
& Dec 2012) and then PM Dr. Manmohan Singh (May 2012). During these visits,
important agreements were signed (MoU on Cooperation in Non-traditional Security
Issues, MoU on Intelligence Cooperation, DTAA, BIPPA, MLAT in Criminal Matters),
and a number of development projects like the Kaladan project, restoration of
Ananda Temple, hospital upgradation, OFL link. India has extended loans of US$
297.43 million and grants of US$ 477.63 million for several infrastructure and public
interest projects in health, education, agriculture etc.
PM Dr. Manmohan Singh paid a State Visit to Myanmar from May 27-29,
2012. PM and President U Thein Sein signed 12 Agreements and MOUs including on
USD 500 million Line of Credit, on Air Services, Border Areas Development, on
Establishment of the Advanced Centre for Agriculture Research & Education
(ACARE) Rice Bio Park Myanmar and Institute of Information Technology with Indian
assistance, Establishment of Border Haats, Joint Trade and Investment Forum, CEP
for 2012-2015, MoUs for Cooperation amongst Think Tanks/ Institutes of the two
countries and support for HRD through 500 training slots. With new road projects like
the Trilateral Highway and Rhi-Tiddim road, India’s commitment to Myanmar’s
development stands at US$ 2 billion.
PM Narendra Modi visited Nay Pyi Taw from Nov 11-13, 2014 to attend the
th
12 ASEAN-India Summit and 9th East Asia Summit. PM called on President U
Thein Sein and met Daw Aung San Suu Kyi. PM also interacted with around 300
members of the PIO/OCI community of Myanmar. NSA Ajit Doval attended the
Nationwide Ceasefire Agreement ceremony on 15 October 2015 in which he was
India’s witness signatory, among others that included China, Thailand, EU, UN and
Japan. India’s presence was a demonstration of support to the peace process
underway in Myanmar.
EAM paid an official visit to Myanmar from 14-16 December 2012 and had
extensive discussions with the Myanmar Foreign Minister. EAM and Foreign Minister
signed the MOU for construction of Rhi-Tiddim Road in Chin State of Myanmar. EAM
and Myanmar Vice President jointly inaugurated the “International Conference on
Buddhist Cultural Heritage” organized by ICCR and Sitagu International Buddhist
Academy in Yangon. EAM and Minister of Religious Affairs jointly unveiled the
Sarnath Style Buddha Statue gifted by the People of India to Myanmar and also
inaugurated the photo and book exhibition on “Buddhist Cultural Heritage” at the
premises of Shwe Dagon Pagoda. EAM Sushma Swaraj visited Nay Pyi Taw from
August 08-11 to attend the 4th East Asia Summit Foreign Ministers Meeting and 21st
ASEAN Regional Forum Ministerial Meeting and paid an official bilateral visit on
August 11, 2014.
RM led a high level delegation comprising of the Defence Secretary, Vice
Chief of Naval staff, the GOC-in-C Eastern Command and other senior officials which
visited Myanmar from 21 to 22 January 2013. During the visit, RM called on
President U Thein Sein and had discussion with C-in-C Vice Senior General Min
Aung Hlaing and Defence Minister Lt. Gen. Wai Lwin.
Speaker of Lok Sabha led a first ever Indian Parliamentary delegation to
Myanmar from 12-15 February 2013. During the visit the Speaker called on the
President U Thein Sein and held discussions with Pyithu Hluttaw Speaker Thura U
Shwe Mann and Amyotha Hluttaw U Khin Aung Myint. The Speaker of Pyithu Hluttaw
hosted a banquet in honour of visiting Speaker and interacted with the Indian
Community.
Minister of Commerce, Industry and Textile visited Myanmar from 6-8 June
2013 to attend World Economic Forum on East Asia in Nay Pyi Taw. CIM and
Myanmar Minister of Commerce U Win Myint inaugurated the 1st India-Myanmar
Joint Trade and Investment Forum, Yangon. CIM Nirmala Sitharaman co-Chaired
the 5th Joint Trade Committee (JTC) meeting with U Win Myint on 16-17 February,
2015 in Nay Pyi Taw. During the visit CIM interacted with the Myanmar captains of
industries at UMFCCI in Yangon and addressed the community function organized by
the Indian community, Yangon. Other visits include that of Chief Ministers of Sagaing
and Mandalay regions of Myanmar, who visited the Sangai festival in November 2013
with a 110-member delegation that included businessmen, artistes, academics and
media. The 3rd CMLV (Cambodia, Myanmar, Lao PDR, Viet Nam) Business
Conclave was held on 12-13 January 2016 at Mamallapuram, near Chennai.
“Myanmar as an Investment Destination” was a major theme at the Conclave.
Commerce Minister Nirmala Sitharaman and Myanmar Dy. Commerce Minister Dr
Pwint San co-chaired the Conclave along with Ministers from other CMLV countries.
Being the first major promotion of Myanmar as an investment destination for the
Indian industry in decades, the Conclave was attended by top business leaders of
both these countries as also by other CMLV countries.
Commercial relations
Commercial cooperation is another area of focus. India and Myanmar signed a
trade agreement in 1970. Bilateral trade has been growing steadily reaching USD
1571.95 million in 2014-15 (Exports to Myanmar USD 773.74 million and Imports
from Myanmar USD 1016.86 million) and India is the fourth largest trade partner of
Myanmar but trade remains below potential. Agriculture sector dominates bilateral
trade. Myanmar is the second largest supplier of beans and pulses to India and
Timber and wood products. India’s exports to Myanmar include pharmaceuticals
products, steel & iron products, electrical machinery, Mineral oil, Rubber and articles,
plastics etc. Border trade via Moreh and Zawkhatar reached to US$ 51.68 million in
2013-14.
India has moved to eleventh largest investor from tenth position with an
approved investment of US$ 299.5 million out of total estimated investments of US$
45.237 billion from 33 countries by 655 enterprises. Most of India’s investments have
been in the oil and gas sector. Following the New Foreign Investment Law (02 Nov
2012) and the by-laws and rules framed by the respective departments/ministries (31
January 2013) investments into the country is increasing. Now FDI is allowed 100 %
in select sectors. Indian companies have evinced interest in investing in Myanmar
and major contracts have been won by Indian companies include Jubilant Energy
India- PSC-1 onshore bloc; Punj Lloyd; Jindal Saw; Welspun India; Vihaan Networks;
Nipha Exports and Troika Exports; L&T. More facilitative environment that includes
greater air, sea and road connectivity options would give a fillip to the cooperation.
Cooperation in banking sector is crucial for investment and trade. United Bank of
India signed number of banking agreements with banks of Myanmar (MFTB, MICB,
MEB, and 9 private banks) in order to facilitate trade transactions between the two
countries. United Bank of India (UBI) has opened its representative office in
November 2012. In addition to UBI, Indian Overseas Bank, EXIM bank and State
Bank of India have opened representative office in Yangon.
Mechanisms such as Joint Trade Committee, Double Taxation Avoidance
Agreement and Bilateral Investment Protection Agreement and other technical level
committee on trade have contributed significantly in strengthening trade and
investment relations. The first Joint Trade and Investment Forum (JTIF) was held in
Yangon on 7 June 2013 co-chaired by Shri Sunil Mittal and U Aung Win (President
UMFCCI, Myanmar). Myanmar is an important partner in strengthening our energy
security. Recognising this, an MOU on Co-operation in the Petroleum Sector
between MOP&NG and Ministry of Energy of Myanmar was signed during
President’s visit to Myanmar in March 2006.
Development cooperation and humanitarian relief
Development cooperation is a key aspect of our relationship and we have
offered technical and financial assistance to Myanmar for projects in infrastructure,
capacity-building, emergency relief and others. The total development assistance to
Myanmar stands at approx USD 2 billion.
Disaster Relief: India has responded promptly and effectively to assist
Myanmar in humanitarian relief operations following natural calamities like Cyclone
Nargis in 2008, the earthquake in Shan State in 2010 and cyclone Komen in 2015.
We have provided immediate relief material, medical assistance, supplies for
rehabilitation work, biomass gasifiers, solar torches & lanterns. We have also
replaced 16 damaged transformers and given a grant of USD 200,000 to repair the
Shwedagon Pagoda complex in Yangon. We also gave assistance of USD 1 million
for relief and reconstruction work in the quake affected zone in Shan State, of which
250,000 was given as a cash grant and the remainder used to finance reconstruction
of 1 high school and 6 primary schools. We have also donated US$200,000 in cash
to GOM for Rakhine State rehabilitation. India again provided a sum of US$ 1 million
to Government of Myanmar for promoting inter-communal harmony in Rakhine State
which the Myanmar Government has chosen to use to construct 10 schools to serve
both communities and promoting communal harmony. The construction of 10 schools
has hence been completed and classes commenced from the new building. Our
emergency supply of food, medicines and relief supplies through four airforce flights
to Kalay and Mandalay, soon after the Cyclone Komen has been widely appreciated.
Cultural relations
India and Myanmar share close cultural ties. There is a deep sense of kinship,
particularly amongst the Buddhist community, given India’s association with the
Buddha’s life. We are trying to make the most of this shared heritage by undertaking
some key initiatives: GOI working for restoration of the Ananda Temple in Bagan;
GOI donated a 16 foot replica of the Sarnath Buddha Statue which has been installed
at the premises of Shwedagon pagoda in Yangon; MEA in coordination with ICCR
and the Sitagu International Buddhist Academy and Myanmar Ministry of Religious
Affairs organised an International Conference on Buddhist Cultural Heritage from 15-
17 December 2012. Apart from this, performances by Indian and Myanmar cultural
troupes have been organized on a regular basis. Myanmar troupes and artistes have
regularly participated in South Asian and ASEAN cultural events in India.
Connectivity is increasingly being seen as the key to promoting bilateral
commercial, cultural, touristic and other exchanges. India is undertaking some
important development projects that will enhance connectivity: these include the
Kaladan project, construction/upgradation of Rhi-Tiddim Road, MOU for which was
signed during the visit of EAM to Myanmar in December 2012. We have agreed to
Myanmar’s request to undertake the task of building the 69 bridges along the Tamu-
Kalamyo-Kalewa (TKK) Friendship Road and construct the 126 km Kalewa-Yargyi
road segment for establishing seamless Trilateral Highway from Moreh in India to
Mae Sot in Thailand via Myanmar. We are also working on boosting air, rail and sea
links. During the visit of Prime Minister to Myanmar in May 2012, Air Services
Agreement was signed and agreed to set up Joint Working Groups to determine the
technical and commercial feasibility of cross-border rail links as well as direct
shipping links between the two countries. The bilateral Air Services Agreement
enables third, fourth and fifth freedom rights to both Indian and Myanmar carriers. An
MOU to establish a direct Imphal-Mandalay bus service and the broad framework for
the operation of this service has been negotiated and initialized and awaiting the final
formal signing. The Air India has launched a direct flight between Delhi-Gaya-Yangon
once in a week during the peak season of 2014. The Shipping Corporation of India
has launched a direct sea link between India and Myanmar in October, 2014.

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