India, Myanmar strengthen trade ties, plan to restart border trade
The discussion took place between Myanmar’s Deputy Commerce Minister U Minn Minn and India's Minister of State for Commerce and Industry, Jitin Prasada, in New Delhi.
Guwahati, Feb 16: India and Myanmar have reaffirmed their commitment to boosting economic cooperation, with discussions focusing on resuming border trade through road networks and expanding trade in key sectors.
The meeting, held in New Delhi on February 14, saw Myanmar's Deputy Commerce Minister U Minn Minn and India's Minister of State for Commerce and Industry, Jitin Prasada, engaging in detailed talks on trade and connectivity.
Both leaders acknowledged the importance of reinstating road-based border trade, which has been disrupted in recent years due to security and logistical challenges. They agreed to take necessary steps to facilitate smooth trade movement, recognising its potential to boost local economies on both sides.
The discussions also explored collaboration in key sectors such as pharmaceuticals, pulses, and petroleum products, highlighting the need to diversify trade partnerships for mutual benefit.
A significant focus of the meeting was the Rupee-Kyat trade settlement mechanism, introduced in July 2024 to enable trade transactions in local currencies and reduce dependence on third-party currencies like the US dollar.
The system has already been utilised, including a Rs 1 crore export of pulses from India to Myanmar. Both nations expressed interest in increasing its adoption to enhance trade efficiency and financial stability.
India is currently the fifth-largest trading partner of Myanmar, with bilateral trade recorded at USD 1.74 billion in 2023-24, slightly lower than USD 1.76 billion in 2022-23. To address these fluctuations, both sides prioritised infrastructure development as a key enabler of trade growth.
They discussed ongoing projects like the Kaladan Multi-Modal Transit Transport Project, which connects India's eastern ports to Myanmar’s Sittwe port, and the India-Myanmar-Thailand Trilateral Highway, aimed at improving regional connectivity and trade flow.
Despite these initiatives, security concerns along the India-Myanmar border remain a challenge. Recent conflicts in Myanmar and stricter security measures on the Indian side have disrupted border trade routes, affecting the movement of goods and traders.
Leaders from both countries acknowledged these issues and stressed the need for a balanced approach that ensures security while facilitating economic activity.
The discussions between India and Myanmar mark an important step towards strengthening bilateral ties and enhancing regional economic cooperation.
By focusing on trade diversification, improved financial mechanisms, and better infrastructure, both nations aim to foster long-term economic growth and reinforce their strategic partnership.