TODAY -

Indo-Myanmar relationship on bilateral and economic cooperation

T Haokip *

Moreh - Border Town between Manipur and Myanmar in December 2012
Moreh - Border Town between Manipur and Myanmar in December 2012 :: Pix - Daniel Chabungbam



Relationship changes in the lives of individuals as well as of nations. Since attaining independence from the British rule Indo-Myanmar relationship have seen many ups and downs. From 1948-1962 relation was friendly and cordial during the days of Prime Minister Nehru and Prime Minister U Nu. But from 1962-1988 relations virtually froze with the military rule under Ne win adopting an isolationist policy. Domestic policies including the expulsion of ethnic Indians soured the relations. Then from 1988 as a result of the sympathy of the Indian government to the pro democracy movement which started in 1988, the relations were completely strained.

In 1993, India reversed its stance with a more realistic and pragmatic policy and started engaging the military regime in open dialogue. Since then the relations have been growing steadily save for a minor hiccup in 1995 when Aung San Suu Kyi was awarded the Nehru Peace Price for International Understanding. The visit of Maung Aye, Vice Chairman SPDC, the second most powerful military junta leader in November 2000, changed the entire scenario. There has been all round progress in political, economic and military relations as well as cooperation in technology, HRD, infrastructure, education, space, health and other fields.

The first Border Trade Agreement was signed in Delhi in January 1994 and was implemented in April 1995 with the opening of a cross border point between Moreh (India) and Tamu, (Myanmar). The border trade which had a spurt in the beginning with export of Indian goods worth Rupees 31 crore and imports from Myanmar worth Rs 15 crore in 1996-97 had declined to a level of Rupees 5 crore in export and import by 2004-05 according to official statistics. As of today the trade value is a dismal one crore only. Trans-border trade has failed to provide any benefit to local people and there are procedural hiccups for obtaining licenses as well apart from the failure of law and order and absence of proper infra-structures.

The 160 Km India-Myanmar Friendship road on Burmese territory from Tamu to Kalemyo to Kalewa was built by the Border Roads Organisation and completed in 2001. India is involved in the India-Myanmar-Thailand Trilateral Highway Project. Further, the high point in the bilateral relations was the visit of Senior General Than Shwe, Chairman, State Peace and Development Council in October 2004. To reciprocate, the Indian President Dr APJ Abdul Kalam visited Myanmar in March 2006 which was a landmark as this was the first head of State visit to Myanmar after 1987 when Rajiv Gandhi visited Myanmar.

A number of agreements and Memorandums of Understanding were signed during this visit.

ASEAN factor : Myanmar became a member of ASEAN in 1997. As the only ASEAN country which shares a land and maritime boundary with India, Myanmar is the gateway to ASEAN. The Ministry Of External Affairs has indicated that a few proposals for cooperation are under discussion with Myanmar.

China Factor : China and Myanmar have been close allies since the time PRC came into being. For Myanmar, China's substantial economic, military and political support is vital in view of the sanctions imposed by the West and the mounting pressure by the regional and international forum. The Chinese have built an all weather road from Kunming in Southern China to Mandalay in Central Myanmar and volume of trade has increased hundredfold. It has been proved beyond doubt that economic sanctions have not deterred the military regime in pursuing its agenda.

Hence a policy of diplomatic persuasion and economic aid linked with progress in democratic reforms may be a viable solution for India.

While India's concerns are understandable, Myanmar must have also realised that it is being stifled by China and must look for an alternative in India, particularly in view of India's rising economic potential and mutual strategic and security interests. Despite India's improving relations with China, the China factor does have an impact on India's relations with Myanmar. However it is also in Myanmar's interests to have an alternative source in India for its economic better-ment.

Thus, the strategic and security considerations outweigh India's concern for democracy in Myanmar.

Broad features of Indo-Myanmar Border Trade :

The Indo-Burma treaty of 1952 on Border Affairs was designed to ensure free movement of the local ethnic tribals for meeting their daily socio-economic needs.

There was a tacit understanding that the tribal population on both sides of the international border who belong to the same ethnic group will be allowed free passage within 40 Km on both side for the purpose of carrying on local trade and social visits.

FEATURES OF BORDER TRADE :-

> Special feature of this border trade are :
* Trading in items of daily necessity at local market -
* Trading in commodities of local produces -
* Trading preferably in barter system -
* Trading in head load quantity -
* Trading between dawn to dusk

SOCIAL AND CULTURAL TIES :-

> Special feature in social & customary visits are :-
* Visits for performing social and customary rites & rituals
* Visits in connection with marriages -
* Visits for health reasons -
* Visits for social and religious functions -
* Visits restricted to 40 Km on both sides of the border.

This Treaty Has Been Modified And Renewed From Time To Time To Meet The Changing Need.

After the military junta took over power in Myanmar, and the economic sanction imposed by the Western power in view of the atrocities committed on the democratic movement in that country, India also adopted a close-door policy to Myanmar. However, in view of the recent Chinese economic expansion in Southeast Asia and Myanmar, India recently adopted an open-door policy. However, experience in matter of trade implementation reveals too many stumbling blocks and even with the best intention to overcome them Indian traders find little attraction in continuing legal trade relation with Myanmar.

CONSTRAINTS IN TRADE IMPLEMENTATION :-

> FUNDAMENTAL CONSTRAINTS IN THE GROWTH OF BORDER TRADE ARE :-


* Poor state of infrastructure such as road connectivity, telecommunication facilities, banking and other financial network.
* Dual currency exchange rate system of Myanmar. Example : Official exchange rate of Indian Rupee against Burmese Kt. is Rs.1 = Kt. 0.09
* Unofficial rate of exchange is - Rs.1 : 19 kt
* The overvalued Myanmer currency in the official market is a disincentive for the Indian trader.
* Absence of currency exchange counters is a setback.
* Absence of law and order in the state of Manipur as a whole.
* Too frequent bandhs and road blockade by different organizations.
* Presence of too many militant groups and collection of high illegal taxes.
* Absence of Peace, security and safety in business premises.

GROUND REALITIES OF BORDER TRADE :-

> BARTER TRADE MECHANISM FOR OFFICIAL BORDER TRADE :


* This simply means exchange of goods. Example - Indian trader exporting 5 tons of potato in exchange for importing 3 tons of beetle nut. Goods exchange in value equivalence.
* This system means that the export from one country needs to be balanced by the import of another country in terms of value and volume as per negotiation of the trading parties.
* There is a stipulation that export from India must precede import from Myanmar.
* Balancing export with import is required to be completed within 6 months. This restricted system not only hinder free flow of trade, but puts Indian traders at a disadvantage.
* The narrow range of items identified for official trade is also another important factor restricting the natural trade flow. Only few items are allowed for trade.
* While each country can have their own list of negative list items for export and import the scope of border trade needs to be extended to other items in order to boost up trade.

Conclusion : In spite of the much talk about Look East policy adopted by India there appears to be too many patches of dark clouds which cast shadows of doubt and fear on Indian business men and unless a healthy investment climate is created legal trade between the two neighbours will still remain a distant dream whereas smugglers will continue to thrive and fish in this trouble water of INDO-MYANMAR BORDER for years to come.


* T Haokip (Translated by Tayenjam Bijoykumar) wrote this article for The Sangai Express
The writer is IRS, Commissioner, Customs and Excise, retired
This article was posted on March 11 , 2013



* Comments posted by users in this discussion thread and other parts of this site are opinions of the individuals posting them (whose user ID is displayed alongside) and not the views of e-pao.net. We strongly recommend that users exercise responsibility, sensitivity and caution over language while writing your opinions which will be seen and read by other users. Please read a complete Guideline on using comments on this website.


LATEST IN E-PAO.NET
  • Dr Aheibam Koireng: A prolific academician
  • Violence in Manipur 2023-2025 : Timeline
  • Abolish Institution of Hereditary Chieftainship
  • Seminar on Career Choice at Kanglatongbi
  • Indo-Naga Talks (From 2012) :: Timeline
  • TCI condemns Kuki diktats
  • Diktat to cancel Hun-Thadou fest
  • Objection To "Hun" Celebration
  • How to choose right career after XII class ?
  • Details of drug smuggling coming to light
  • Robust anti-drug units must to nail kingpins
  • Rare grasshoppers, crickets recorded in Zeilad
  • The Laiphadibi :: Poem
  • Policy proposal for ending ethnic conflicts
  • Entrepreneurship with mushroom cultivation
  • Condemns illegal diktat by Kuki SoO groups
  • A woman - Does she need fixing ?
  • Understanding Ponzi, digital banking fraud
  • Step down nudge to political appointees
  • Rivers turning into dumping zone
  • Radio E-pao: 5 new songs added ...
  • Ungambi, Sumjirkhup, Daichui : eMing
  • The Power of Forgiveness & Leadership
  • The Painted Facade :: Poem
  • The culture of 'Micro-notes'
  • Tooth trouble: How parenting choices affect
  • Smart watches becoming essential for health
  • Uphul-Waiphul and Leikhom-Leinang
  • Sluggish road work in state
  • Yaoshang Sports @ Kwakeithel #1 : Gallery
  • Non-violence for defeating Kuki militants
  • Emerging Tech for Senior Govt Officials
  • Oil exploration in Manipur and Nagaland
  • Thadou Hun Cultural Festival 2025
  • Homage to ex Nagaland CM Vamuzo
  • Meteorology as a career choice
  • NRC before delimitation call
  • Constitutional means unlikely to end crisis
  • Thang-Ta for emotional balance
  • World Water Day @ MU : Gallery
  • How can we leave behind at higher TB risk
  • Cocoon of Despair :: Poem
  • Raghubir Thiyam: Gopal Sharma Award 2025
  • Women in era of 'sex objectification'
  • Manipur inching towards solution
  • Growing defiance of the radical elements
  • Growing clamour for NRC in state
  • 14th AMWJU Annual Sports Meet #2 : Gallery
  • Research methodology in English literature #2
  • Supreme Court Judges visited Relief Camps
  • Thiruvarur Temple Rath Yatra
  • Sakora Abhiyan at Manipur University
  • Fragmentation of Kukiland dream into Zoland
  • Viksit Bharat Youth Parliamentary Fest
  • Yaoshang Mei Thaba #2 : Gallery
  • Viksit Bharat Youth Parliament at Tamenglong
  • Leadership Lessons Rooted in Wisdom
  • Water is lifeblood for our planet
  • Introduce Psychology as a Major Subject
  • Spring beauty: Foods that make you beautiful
  • Yapping on the mobile while driving
  • Manipur's perspective in ECI move
  • Day 5: Yaoshang Sports : Gallery
  • Issue of Separate Administration for Kuki-Zo
  • Danger of substandard medical products
  • Impact of global warming: Dengue in winter
  • 54th National Safety Week in Manipur
  • March 2025 : A significant month so far
  • Amit Shah tough posture against drug dealer
  • National Bamboo Festival : Gallery
  • Yaoshang Pichakari #2 : Gallery
  • Appeals for peace & understanding in CCpur
  • Role of former legislators in governance
  • World Social Work Day
  • 1st Northeast Social Work Conclave
  • Looking back at March 8, 2025
  • ECI move for aadhaar link a boon for Manipur
  • Remembering Comrade Nurul Huda
  • Yaoshang Mei Loukhatpa #4 : Gallery
  • Thadou's Position on Kuki-Zo "Referendum"
  • Reflections on mentorship & journey of youth
  • Condemn assault on Hmar leader in CCpur
  • A Choir of Cries :: Poem
  • The essence of Yaoshang
  • Research methodology in English literature #1
  • Rongmei in Nagaland fish for opportunities
  • Training on Plant Tissue Culture @ IBSD
  • The Taste of Dreams - A Stirring Tale
  • Why is menstruation stigmatized in India ?
  • Pichakari @ Govindajee #1 : Gallery
  • Is patriarchy petrifying govt on gender equality
  • From Ashes to Hope :: Poem
  • The grim fate of entrepreneurs in Manipur
  • Suggestions for Opening National Highways
  • 'Ghar Wapsi' on cards for Team Neiphiu Rio ?
  • Yaoshang Mei Loukhatpa @Kangla : Gallery
  • Calls for Free Flow Of Rivers in Manipur
  • Self-Motivation as the Key to Success
  • Article 355: An obligation upon Central Govt
  • Women empowerment : A myth or a reality
  • The Power of Poppy - 73 :: Poem
  • Yaoshang Mei Thaba @ Imphal #1 : Gallery
  • International River's Day at Nungbrung
  • 'Preservation of Cultural Heritage' seminar
  • A Bungalow for Brahmaputra
  • Nongmaithem Rakesh at Fitness Supermodel
  • Objection to Revoke Free Movement Regime
  • Agony of Assam: Rich in tea & yet joblessness
  • 14th AMWJU Annual Sports Meet #1 : Gallery
  • Why Priyakanta Laishram's Best Director...
  • Bishworjit Konthoujam in English Cricket club
  • Welcome joint statement from TIM & MA
  • Yaoshang Holi Festival :: Book
  • Cry for Constitutional safeguards of Meitei
  • Centre's free movement plan under cloud
  • Time to say No to separatist agenda
  • 1st AMAND Football Cup @ Pune : Gallery
  • Viksit Bharat Youth Parliament at Tamenglong
  • Youth's Role in Society & Regional Upliftment
  • Finance Minister's masterclass in empathy
  • Bijou Thaangjam : Best Director, Indie Shorts
  • NER Tech Hackathon 2025 results announced
  • Holi skin and hair care tips
  • Call to surrender arms, call for free movement
  • Dissent over state budget
  • 21st Ningtham Kumhei #1 : Gallery
  • pNTuHdugi lMjeL - Lamjel :: Seireng
  • Project Associate / RA @ Assam Univ
  • Manipur - experiment for tribal integration
  • Learn from the mistakes of others
  • Change happens when gender inequality...
  • Of regulating cross border movement
  • Public yearning for peace, not street protest
  • Hackathon @Manipur University : Gallery
  • Lady from hills face discrimination in town
  • Objection Regarding Biased Reporting
  • The ice-cream woman of Tripura
  • Prayers and Appeal
  • His excellency : A lover of Manipur
  • Turning NH-2 to a battlefield
  • Onus on centre to counter indefinite shutdown
  • A Blueprint for Turning Dreams into Reality
  • Ukraine President Vs US President
  • Light for All :: Poem
  • The Philosopher - King :: Review
  • Health problems from consuming fast foods
  • Cutting short trip to Senapati
  • Time to expose leaders inciting commoners
  • The Untold Meaning of MEETEI and MEITEI
  • Nirmala Chongtham : Bans Bhushan Award
  • Peace as Basic Foundation in Manipur
  • Lost Between Life and Death :: Poem
  • First National Lok Adalat 2025
  • If bulging blue veins on your abdomen
  • The Power of Poppy - 72 :: Poem
  • In Memory of Aheibam Koireng
  • Dinesh Leitanthem: Wresting titles to brickfield
  • Featured Front Page Photo 2025 #1: Gallery
  • International Women's Day (IWD)
  • Statement of Condemnation
  • Maharishi Karve - on Women's Day
  • Critics struggling to analyse theatre
  • Denounces Death Threats
  • Clear all roads instruction: Date with March 8
  • Surrender deadline end, public lens on centre
  • Manipur's War on Drugs: Against Narcotics
  • 1st AMAND Football Cup 2025 : Report
  • JN IV National Schools C'ship 1958 Delhi
  • Why Naga Peace Talks lost track ?
  • To My Master Kaduangaipou :: Poem
  • The Mirage of Moirang :: Poem
  • Miss & Mister NE at free eye check-up camp
  • Hosting foreign rebel groups
  • Kuki militants taking advantage of SoO
  • Archaeology & History of Manipur: Report
  • Education as academic discipline obscure?
  • Our Homeland, our Manipur :: Poem
  • Integrating AI in agriculture need of hour
  • Training on Mushroom Cultivation
  • Decline in Collective Responsibility
  • Moirangthem Marjit chairs CCCIS, Hong Kong
  • Polluting future pillars of society
  • Plight of violence-affected, infra-bereft farmers
  • Quantum Science (IYQ-2025) : Report
  • Mushroom Training @ Yangdong : Gallery
  • Mastering Art of Effective Communication
  • World Wildlife Day 2025
  • Stop This Madness
  • Welcomes Govt Peace Initiative in Manipur
  • Only 66 crore washed sin at Kumbh
  • Solution 1st, slogan: Mischievous war mongers
  • CoTU outright affront to central govt
  • Student @Class X Exam (CBSE) #2 : Gallery
  • Fate of fermented product as climate concern
  • Welcome Arambai Tenggol Initiative for Peace
  • Appreciates Govt of India's Action Plan
  • Of Naga entity, hope and new dawn
  • Harsh reality of IDPs amidst political chaos
  • 3rd Foundation Day- Cancer Welfare Society
  • Infiltrators from across the border
  • Teachers abetting unfair means in exam
  • Draft plan for employment generation #4
  • A Place, We Dearly Call Childhood :: Poem
  • 10th NESOJ Sports Meet at Jalandhar
  • Poondi Lake - Chennai's Thirst Quencher
  • Will the real NDPP stand up ?
  • From February 9, 13 to now
  • Visible actions under new regime
  • Saroi Khangba @ Imphal #1 : Gallery
  • Biomedical Research Training @ RGU
  • Betraying Manipur: Centre delay intervention
  • The Power of Poppy - 71 :: Poem
  • Reliance Postgraduate Scholarships Results
  • School uniform teach student a lesson of unity
  • Alan Walker: WalkerWorld India Tour
  • Hackathon on Emerging Tech @ MU
  • 6 Practices to Get Back in Journey of Life
  • The Last Step - Best Film @Sittanavasal
  • National Science Day at IBSD
  • LNKR held 2nd Union Assembly
  • Making a mockery of the HSLC exams
  • Total sanitisation of NH-02 essential
  • Shivaratri Shopping List @ Singjamei : Gallery
  • Mushroom Training at Yangdong Thounaojam
  • Call for GoI to Stop Kuki Militants
  • End AIDS why is the urgency missing ?
  • By a poor lunatic man :: Poem
  • National Science Day 2025
  • Disarming all with eyes on normalcy
  • Why is KOHUR upset with AT-Bhalla peace?
  • Can the Meiteis in Tripura save Pena ?
  • March Calendar for Year 2025 : Tools
  • puNsi - Punshi :: Seireng
  • President's Rule of February 2025
  • Coaching centers are dominating children
  • Good company & environment will prove...
  • Sounding Delhi's man with ST call
  • Diluting false narratives of Meetei bashers
  • Chorphon has myriad medicinal benefits
  • Imagi Sorat : Folk Narrative Arts #2 : Gallery
  • Kuki's controversial identity & the conflict #2
  • Nitya Ras @Nongmeibung #2 : Gallery
  • Students @ HSLC Class X Exam : Gallery
  • Kuki's controversial identity & the conflict #1
  • Students @ Class XII Exam : Gallery
  • laIAoIrb sn KoHnaH :: Seireng
  • President's Rule in Manipur : 1967 - 2025
  • Tarao Harvesting Fest @Chandel #6 : Gallery
  • Mutua Bahadur : Preserving Manipuri culture
  • Nupilal Ningshing Lamjel #2 : Gallery
  • Hingminashi Eikhoi : Call for unity in diversity
  • AIR Radio Imphal Station - Live streaming
  • E-Pao.net : 25th Anniv & 2025 Wishes
  • Protest @Delhi - Murder of Meiteis #2: Gallery
  • Meitei Mayek Tamba : Online Classroom #5
  • Downloadable Manipuri Calendar :: 2025
  • GHOST of PEACE :: Download Booklet
  • SPONSORED ADS