Indo-Myanmar Relations: An Appraisal

India and Myanmar share significant cultural and historic ties. However, the cordial Indo Myanmar relations prevalent during the Nehruvian era developed strains after the military assumed power in 1962. India’s support to the pro-democracy movement in 1988 further exacerbated the relationship. The process of normalisation of relations started in 1993 when India decided to engage the military regime. There was a commonality of interests as Myanmar looked to reduce its excessive dependence on China while India sought to curtail increasing Chinese encroachment in its backyard.The award of the “Nehru Prize for International Understanding” to Aung Suu Kyi in 1995 raised eyebrows in the military regime and at the same time, India’s engagement with the military junta upset Aung Suu Kyi. However, this was but a temporary hiccup in the developing relationship. A series of high-level visits from both sides have added to strengthening the relationship. In the economic domain, India has committed over USD 1.2 billion in aid to Myanmar in the sectors of infrastructure, health, education, agriculture, industrial development and culture. This is the second largest Indian investment after Afghanistan where India has committed over USD 2 billion. Apart from several developmental initiatives, India also supplied military hardware, badly in need by Myanmar army in fighting rebels, in spite of severe international pressure.

High Level Visits

After the new government was formed by President Thein Sein on March 30, 2011 and democratic reforms introduced, the relations have seen further impetus. Shri S M Krishna, then Minister of External Affairs was the first foreign minister of any country to visit Myanmar in June 2011. This was followed by a visit of President U Thein Sein to India in October. President Thein Sein visited India again in Dec 2012 for the Indo-ASEAN summit. Pyithu Hluttaw (Lower House) Speaker Thura U Shwe Mann led a high level parliamentary delegation to India from December 11-17, 2011. The objective of the visit was to share India’s experience in parliamentary practices and procedures with the visiting Myanmar delegation. Myanmar Foreign Minister U Wunna Maung Lwin paid an official visit to India from January 22-26, 2012. The Prime Minister of India Dr. Manmohan Singh paid a state visit to Myanmar from May 27-29 2012, which was a first by an India Prime Minister in 25 years. The C-in-C of Myanmar armed forces Vice Snr-Gen Min Aung Hlaing was on a weeklong visit to India in August 2012. The Indian service chiefs too visited Myanmar since. The visit of Aung Sang Suu Kyi in November 2012 helped clear her misgivings caused as a result of India engaging the military junta. The present Indian External Affairs minister Mr. Salman Khurshid also visited Myanmar in December 2012, his first foreign trip to any country after taking up the post. These visits are a pointer to the importance both countries attach to improved ties.

Trade

There are two border trading points Moreh-Tamu andZowkhatar –Rhi. Proposal for a third border trade point at Avakhung-Pansat/Somrai is under consideration. The border trade saw a spurt from USD 14.2 million in 1980-81 to USD 1.94 billion in 2012-13. The target is to increase trade to USD 3 billion by 2015. India is a major export market for Myanmar with timber and pulses constituting Myanmar’s major exports. But starting 2014 Myanmar has banned export of raw timber. Now many Indian companies are considering investments in Myanmar to process wood and set up plywood and other factories. Indian exports remain on the lower side with pharmaceuticals being the major export item. Now the exports are diversifying and companies are investing in passenger cars, commercial vehicles and textiles. Indian companies are also considering investing in Special Economic Zones (SEZ) in a big way. Though trans-border trade has taken off it is still much below the potential which is being addressed on a priority basis with significant steps taken in this direction. In addition, some Indian companies are investing in oil pipeline projects and offshore platform development project. ONGC and GAIL have a share in A1 and A3 blocks and are investing in gas pipeline projects. Other companies are also bidding for new exploration blocks for which scrutiny is underway.

Investments and Infrastructure Development

In 2004, India built the 160 km India-Myanmar Friendship Road from Tamu to Kalemyo to Kalewa. India will now build a further stretch of 120 km by upgrading the Kalewa-Yargyi road segment to highway standard. Slated for completion in 2016, this will enable seamless trilateral connectivity between India, Myanmar and Thailand. Another major project is the Kaladan Multi Modal Programme, which involves upgrading the Sitwe port to enable ships up to 8000 tonnes, dredging the Kaladan river making it navigable throughout the year up to Kaletwa which is 160 Km upstream and constructing a road from Kaletwa up to the Mizoram border. Work on this commenced in 2010. TATA motors has set up a heavy turbo-truck assembly plant in Myanmar with financial assistance from GOI and was inaugurated on December 31, 2010. Some key projects that are currently under implementation are the up-gradation of the Yangon Children’s Hospital and Sittwe General Hospital, hydroelectric projects and setting up of a new Industrial Training Centre in Myingyan, and several small projects for setting up of schools, health centres and hospitals in remote areas in Chin State and the Naga Hills. During the visit of Indian Prime Minister, 12 MoUs were signed including extension of a new line of credit (LOC) for USD 500 million to Myanmar in the areas of railways, power transmission and irrigation projects.

Capacity Building and Training

In the field of IT, India is setting up the Myanmar Institute of Information Technology in Mandalay mentored by IIIT, Bengaluru. This will have a capacity of 2000 students. In addition, important agreements have been reached such as Air Service Agreement, Establishment of Joint Trade and Investment Forum, MoU on Border Areas Development, and establishment of Border Haats and Cultural Exchange Programme, all of which are under various stages of implementation. An India-Myanmar Industrial Training Centre has been set up by HMT(I) in Myanmar with the assistance of GOI in Pakokku and a second centre is being set up in Myingyan. The Myanmar-India Centre for English Language (MICELT), a Myanmar-India Entrepreneurship Development Centre (MIEDC) and an India-Myanmar Centre for Enhancement of IT Skills (IMCEITS) are already operational.

On the training front, participants from different Ministries of Myanmar Government attend various courses offered under the ITEC/TCS scholarships. For 2012-13 the slots under ITEC/TCS were doubled to 500 from 250, which was again enhanced to 525 for this year because of the enthusiastic response from Myanmar. Last year 20 MBA students from the Mandalay University visited IIM Bengaluru for training for two weeks. This will now be an annual affair. There are also visiting programs for Myanmar journalists.

Agriculture

India has announced an assistance of USD 10 million for supply of agricultural machinery and implements to Myanmar. As part of this, 300 state-of-the-art tractors, 300 combine harvesters, 288 power tillers and 775 implements and related equipment have been handed over to the Government of Myanmar. Apart from this, support is being extended by way of education and training in the field of agriculture, livestock and fisheries. In 2011, India extended assistance in setting up ten 500 tonne disaster proof rice silos in the cyclone prone delta region.The Prime Minister during his visit also announced support for setting up an Advance Centre for Agriculture Research and Education in Yezin, and a Rice Bio-park has been proposed in the integrated Demonstration Park in Nay Pyi Taw.

Conclusion

India and Myanmar have made significant progress in their bilateral relations. Various options for joint border management and also settling the differing perceptions on some parts of the border are being discussed which will ensure peace on both sides of the border. A robust and stable relation is a win-win for both countries and to the region as a whole. Having set the ball in motion now comes the bigger responsibility of using the momentum to build an all weather relationship and a lasting strategic partnership based on the principles of equality and mutualism.

The author is a Research Assistant at CLAWS

Views expressed are personal

References:

• Embassy of India in Myanmar, Press release:
• http://www.indiaembassyyangon.net/index.php?option=com_content&view=article&id=106:press-release-embassy-of-india-yangon-visit-of-prime-minister-of-india-to-myanmar&catid=28:press-release&Itemid=132&lang=en
• Talk by AmbV S Seshadri (Retd) during the seminar “Understanding Myanmar: Internal Dynamics and the Regional/International Context” organized by the Institute of Transnational Studies in New Delhi on September 19-20, 2013.
• T Haokip/ Translated by Tayenjam Bijoykumar , Indo-Myanmar relationship on bilateral and economic cooperation, The Sangai Express:http://www.thesangaiexpress.com/tseitm-24403-indomyanmar-relationship-on-bilateral-and-economic-cooperation/