A brief note on India’s stakes at BIMSTEC

BIMSTEC stands for: Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation. As part of the BIMSTEC, countries from the Bay of Bengal region jointly address a variety of issues that concern their countries, such as low investments, trade barriers, poverty, and crime transnationally. The organisation was founded in 1997, and is now represented by seven countries – Bangladesh, Bhutan, Myanmar, India, Nepal, Sri Lanka, and Thailand.

A huge portion of India’s trade with other South Asian countries is facilitated by BIMSTEC. This is a very beneficial platform for India to expand its trade partnerships in Southeast Asia.

Brief about BIMSTEC

BIST-EC (Bangladesh, India, Sri Lanka, and Thailand Economic Cooperation) was formed in Bangkok on 6 June 1997. After Myanmar was included in the group during the special ministerial meeting held in Bangkok on 22 December 1997, the group’s name was changed to BIMST-EC. After becoming an observer in 1998, Nepal became a full member in 2004. Bhutan became a full member in 2004.

The General Secretary of BIMSTEC is Tenzin Lekphell of Bhutan.

The Chairman of BIMSTEC has been Sri Lanka since 2018.

Secretariat and Headquarters of BIMSTEC –   Dhaka, Bangladesh.

2022 marks the 25th anniversary of the founding of BIMSTEC. The theme of the 2022 summit was “Towards a Resilient Region, Prosperous Economies, Healthy People.”

Objective of BIMSTEC

• Tourism
• Agriculture
• Human resource development
• Transport and communication
• Trade and investment
• Technology
• Climate change
• Energy
• People-to-people contact
• Counter-terrorism
• Poverty alleviation
• Raising the living standards
• Environment and disaster management
• Fisheries
• Education and technical affairs
• Public health
• Cultural cooperation
• Transnational crime

Principles of BIMSTEC

• The BIMSTEC  will operate on the principles of sovereign equality and territorial integrity.
• The BIMSTEC will operate on political independence, non-interference in internal affairs, peaceful coexistence, and mutual benefit.
• BIMSTEC’s cooperation will complement and not replace the cooperation between its member states on a bilateral, regional, and multilateral basis.

BIMSTEC Priority Sectors

• The security and energy sector is appointed to India.
• The trade, investment and development sector is appointed to Bangladesh.
• The agriculture and food security sector is appointed to Myanmar.
• The connectivity sector is appointed to Thailand.
• The innovation, science and technology sector is appointed to Sri Lanka.
• The people-to-people connect sector is appointed to Nepal.
• The environment and climate change sector is appointed to Bhutan.

India’s role in BIMSTEC

With this new framework, India can engage with its neighbours:

• Neighbourhood First – priority to the immediate neighbour of India.
• Act East – connecting India with Southeast Asian countries.
• Linking India’s northeastern states with the Bay of Bengal region via Bangladesh and Myanmar will contribute to the development of these states.

India actively pursues new paths of geo-economic cooperation with countries in the region through BIMSTEC. India’s involvement in making the Bay of Bengal community more integrated is also a reaction to China’s growing influence in the region. It could be a potentially game-changing initiative in the quest for the prosperity of the landlocked northeastern states if India’s role in BIMSTEC is given a boost. 

Challenges for India as a member of BIMSTEC

As a strategic challenge, India is confronted with two key issues: the first is realising that regional integration in South Asia would only be successful without Pakistan’s involvement. It is, therefore, difficult for India to make BIMSTEC appear more relevant despite its overlap with SAARC in terms of its mandate and membership.

The second factor is China’s influence over BIMSTEC members from a strategic and economic standpoint, so that BIMSTEC can become a pawn in the Indo-China rivalry. Therefore, the Indian government will need to carefully navigate through this new geopolitical environment in South Asia and work together towards common goals, with India playing its appropriate role.

As of 2017-18, India contributed Rs. 2 crore (32% of the total budget) to the BIMSTEC secretariat’s budget. With the secretariat planning to enhance its capabilities, India may need to consider allocating additional resources. An important test of India’s commitment to the sub-region would be its generosity.

BIMSTEC is also plagued by the fact that it is dominated by India. Despite this, because of the changes in geo-economics, most of the smaller neighbours are more open to interacting with India as it grows economically. Those countries need to see India as a constructive partner.

BIMSTEC for India

The BIMSTEC initiative for India stands at the crossroads of the ‘Neighbourhood First’ and ‘Act East Policy’. Among its key advantages to India are the potential economic rewards of greater regional connectivity. The second is Asia’s fast-changing geostrategic situation. Indian policymakers should take advantage of the Bay of Bengal to contain a more assertive and capable China.

Only BIMSTEC unites India’s strategic peripheries under one umbrella, unlike SAARC, which focuses on sub continental countries. BIMSTEC is a more natural means of Indian regional integration than SAARC, which is dominated and hindered by tensions between India and Pakistan. BIMSTEC also allows India to put forward a positive agenda to combat Chinese investments.

As a result of projects pending with BIMSTEC, the region, especially India, is likely to undergo a revolution.

One such project is the multimodal Kaladan project, which connects India and Myanmar. By river and road, Kolkata would be linked to Myanmar’s Sittwe port and then to Mizoram. A framework agreement was signed between India and Myanmar in 2008, which has yet to be implemented.

In addition, Myanmar is part of the Trilateral Highway, which connects India and Thailand. By connecting Moreh in Manipur with Mae Sot in Thailand via Myanmar, the highway will establish connectivity between India and Southeast Asia. Construction has already begun.

Conclusion

Through the Bay of Bengal initiative for technical and economic cooperation – BIMSTEC – India becomes more competitive and opens up more possibilities for trade and connectivity to the East of the world.

India’s participation in BIMSTEC would positively strengthen its relationship with South East Asia. The spread of Hinduism and Buddhism in this region attracts India’s ancient ties with these countries and regions. As a foreign policy initiative, India can, therefore, seriously consider giving BIMSTEC a higher priority.