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
  • Archaeology: Culture of Manipur : Booklet
  • Violence in Manipur 2023-2025 : Timeline
  • Wanna be a singer? Get Botox
  • A Central institute in Manipur
  • Nagging in the name of love
  • COVID-19: Update 02 July 2025 : Manipur
  • 'Benefits' of Indira's Emergency
  • Social Stigma :: Poem
  • Inking a peace pact: Why, how: SoO quagmire
  • Van Mahotsav under shadow of declining forest
  • 11th Th Kishan Memorial Lecture : Gallery
  • Shinthoibi, Jangvei, Tamphaton : eMing
  • Manipur crisis & the Left media's blind spot
  • COVID-19: Update 01 July 2025 : Manipur
  • Bombom RK : Musclemania Universe NYC
  • The Grief :: Poem
  • Music Concert & Quiz (MCQ) 2.0
  • SoO agreement unlikely to be scrapped
  • Regulating use of plastic carry bags
  • Mera Houchongba @Kangla #4 : Gallery
  • International Day of Yoga @JNMDA : Gallery
  • BD Behring: The inimitable Gentleman I knew
  • Violence in the name of patriotism : Misguided
  • Daily oral vs long-acting injectable for HIV
  • COVID-19: Update 30 June 2025 : Manipur
  • Smile :: Poem
  • Why was President's Rule imposed ?
  • BJP under pressure to forge unity
  • Kang @Leikai in Imphal : Gallery
  • July Calendar for Year 2025 : Tools
  • COVID-19 : A recurring crisis in Manipur
  • DC Kaith and Forestry in Manipur : Book
  • COVID-19: Update 29 June 2025 : Manipur
  • Longing for Peace :: Poem
  • Black badge, slogan protest by peeved scribes
  • Present the true picture before Delhi
  • Pung-Cholom @ Polo Tournament : Gallery
  • Life: A Journey Through Thought & Being
  • Khongjai Hills & Kuki claim to indigeneity
  • Master Time by Managing Information
  • COVID-19: Update 28 June 2025 : Manipur
  • Pride & patriotism in CCpur's army families
  • The Power of Poppy - 87 :: Poem
  • World Decarbonisation Day: green environment
  • Welcome Home - Nganthoi #2 : Gallery
  • Loss of two precious lives from Manipur
  • Balancing civil liberties with public safety
  • COVID-19: Update 27 June 2025 : Manipur
  • Gender equality & human rights are indivisible
  • Stay hydrated this summer season
  • Silent Half of the Sun :: Poem
  • Connecting the dots in the wishlist
  • Assembly record tampering claims by ex-CM
  • The immortal legacy of Pukhramba Kajao
  • International Day against Drug Abuse 2025
  • COVID-19: Update 26 June 2025 : Manipur
  • Black pottery from Ukhrul - tribal heritage
  • Program on "Mission-Drug Free Campus"
  • Play makes a better world
  • Urgent Appeal to the Honourable MLAs
  • Tribal Empowerment Campaign at CCpur
  • Talk doing the round: PM to come
  • 'Emergency' relief for under-fire BJP
  • Golden Jubilee Art Fair @Imphal : Gallery
  • Declaration: Meetei People Convention, Delhi
  • A Flower Among the Rocks :: Review
  • Book Donation Campaign
  • Improved road connectivity boosts livelihoods
  • To Have Great Dreams :: Poem
  • COVID-19: Update 25 June 2025 : Manipur
  • Regret vs Sorry: Technical & moral insight
  • Cocktail of inept Govt, selfish people
  • State trailing others in cleanliness
  • Colonial Knowledge in NE India #6
  • UHI effect & rising temperatures in Manipur
  • Frequent road blockades cripple economy
  • COVID-19: Update 24 June 2025 : Manipur
  • Unite Health with Community health services
  • NSU, Imphal, tops IIRF Ranking 2025
  • Endless conflict :: Poem
  • Pak nobel pish prize for Trump
  • May 3, 2023 - June 24, 2025: Failure of Delhi
  • Hotter days, sudden rainfall no more a rarity
  • "The Great June Uprising" #2 : Gallery
  • How to Build a Career, Lead with Purpose
  • 2nd Foundation Day- Karnataka Meitei Assn
  • COVID-19: Update 23 June 2025 : Manipur
  • NSCN-IM Amnesty threatens to isolate it
  • Sunset :: Poem
  • Intl Yoga Day for a healthier environment
  • Of clogged drains and plastics
  • Poor roads testify Govt indifference
  • Welcome Home - Nganthoi #1 : Gallery
  • The Silent Erosion of Manipuri Language
  • Design health services around people
  • Serene Hills Host Inspiring Int'l Yoga Day
  • COVID-19: Update 22 June 2025 : Manipur
  • Chopper services between Senapati & Imphal
  • High Court Judges interacted with convicts
  • Redyeing the Fabric :: Poem
  • Differences yet to be resolved stand
  • Border fencing rage as solution eludes
  • Radio E-pao: 14 new songs updated
  • Climate Adaptive Agroforestry
  • Manipur overlooked demographic shifts
  • Young designers shine on Fashion Stage
  • COVID-19: Update 21 June 2025 : Manipur
  • International Day of Yoga at Lamphelpat
  • International Day of Yoga at JNMDA
  • The Power of Poppy - 86 :: Poem
  • Keishampat Lairembi Haraoba #1 : Gallery
  • Crisis in Manipur's Contemporary Education
  • Best 8 Performances in Manipuri Cinema
  • Identity: Caught between China & India ?
  • COVID-19: Update 20 June 2025 : Manipur
  • To The Father Who Listens :: Poem
  • How does net suspension affect youths ?
  • Targeting farmers to cripple state's economy
  • The virus is back and spreading
  • Who is afraid of Manipur ?
  • A threatened lily growing at Shirui Hills
  • World Environment Day in Manipur : Gallery
  • Ambubachi Mela at Maa Kamakhya
  • COVID-19: Update 19 June 2025 : Manipur
  • Dolls made from repurposed vegetable refuse
  • Condemns Attack on Farmer & Killing
  • Abhorrent politics of SoO
  • Police arrogance on harmless drivers
  • "The Great June Uprising" #1 : Gallery
  • Solution from Buddhist & Jain perspectives
  • AI sparks employment concerns in Manipur
  • Greatest Foe :: Poem
  • Chief Justice at Relief Camp, Kangpokpi
  • Call for Recognition of a 3rd Category of IDPs
  • Jun 18, 2001- May 3, 2023: Seed of violence
  • Contract scam in hill districts
  • Colonial Knowledge in NE India #5
  • Spaced Out - Panthung Di Kadaaida! : Rvw
  • Condemns the Killing of Abdul Qadir
  • COVID-19: Update 17 June 2025 : Manipur
  • Thoubal aspirant makes Manipur proud
  • Tamenglong hospital brings quality healthcare
  • Chief Justice at Relief Camp, Mayang Imphal
  • Kuki CM & Sixth Schedule
  • Selective protests, selective silence
  • Nailing the culprits need of the hour
  • UK Meetei diaspora run for Myanmar : Gallery
  • Erwin Khundrakpam : NEET-UG 2025 topper
  • Will we rise to #endAIDS challenge or stumble
  • COVID-19: Update 16 June 2025 : Manipur
  • Appeal to Prime Minister: Manipur Crisis
  • Urges Action on Misinformation
  • Condolences : 2 young cabin crew
  • Grateful To Be Alive :: Poem
  • Making bonfire on the roads
  • Aggression yet again, inspite of playing victim
  • Aftermath of flooding @ Khurai #2 : Gallery
  • Zomia, geopolitics, & the struggle for unity
  • COVID-19: Update 15 June 2025 : Manipur
  • Condolences : Demise of 2 Manipuri Girls
  • Manipur unites in grief after Air India tragedy
  • Hail arms recovery as step toward peace
  • Cleanliness Drive at JNIMS Campus
  • Global Wind Day for a clean environment
  • First came the rain, then the heat
  • Rise in Covid-19 cases
  • Thang-Ta Day @Khuman Lampak #3 : Gallery
  • Meetei diaspora in UK runs for Myanmar victim
  • Manipur empower children with disabilities
  • COVID-19: Update 14 June 2025 : Manipur
  • World Blood Donor Day 2025
  • The Power of Poppy - 85 :: Poem
  • A Northeast Gin Makes Its Mark
  • Mera Houchongba @Kangla #3 : Gallery
  • Saluting Nganthoi, Lamnunthem : Joining hand
  • Condolence : Nganthoi & Lamnunthem
  • 50 years of Pebet #2 : Gallery
  • Indo-Naga Talks (From 2012) :: Timeline
  • Colonial Knowledge in NE India #4
  • Namphake Monastery @ Dibrugarh : Gallery
  • Protest @Checkon -AT arrest [Jun 9] : Gallery
  • Protests - AT arrest [Jun 8 night] : Gallery
  • Aftermath of flooding @ Khurai #1 : Gallery
  • /li>
  • Flooding at JNIMS Hospital #2 : Gallery
  • North East NSS Festival @ MU : Gallery
  • 27th Meira Paibi Numit : Gallery
  • Trump's tariff legacy & its global echo
  • Flooding at JNIMS Hospital #1 : Gallery
  • Flooding Imphal East [31 May] #3 : Gallery
  • Flooding Imphal East [31 May] #2 : Gallery
  • Flooding Imphal East [31 May] #1 : Gallery
  • S Nirupama @Miss Universe : Gallery
  • Protesters to Raj Bhavan [May 25]: Gallery
  • Human Chain @Airport road [May 26]: Gallery
  • Miss Shirui Pageant Contestant: Gallery
  • 48 hrs Bandh: protest security forces: Gallery
  • Protest Rally: Journalist harassment: Gallery
  • HSLC 2025: Full Result (Check Roll No)
  • HSLC 2025: Important Info & Grading System
  • HSLC 2025 : Compartmental candidates
  • HSLC 2025 : Comparative Statement
  • HSLC 2025 : Statistical Abstract
  • HSLC 2025 : District Pass Percentage
  • HSLC 2025 : Govt School Pass %
  • HSLC 2025 : Aided School Pass %
  • HSLC 2025 : Private School Pass %
  • People's Convention on 3rd May #2 : Gallery
  • Featured Front Page Photo 2025 #2: Gallery
  • Riya Khwairakpam : HSE Science Topper
  • Keisham Hannah : HSE Arts Topper
  • Warepam Lidia : HSE Commerce Topper
  • HSE 2025 Result : Science Full Result
  • HSE 2025 Result : Arts Full Result
  • HSE 2025 Result : Commerce Full Result
  • HSE 2025 Information / Abbreviation
  • HSE 2025 Topper : Science
  • HSE 2025 Topper : Arts
  • HSE 2025 Topper : Commerce
  • HSE 2025 : Pass Percentage
  • HSE 2025 : Result Abstract
  • HSE 2025 : Candidates with Highest Marks
  • Ougri Lirol :: Part 1 : Ooba Video
  • President's Rule in Manipur : 1967 - 2025
  • Downloadable Manipuri Calendar :: 2025
  • SPONSORED ADS