India-Myanmar relations are rooted in shared historical, ethnic, cultural and religious ties.

As the land of Lord Buddha, India is a country of pilgrimage for the people of Myanmar. India and Myanmar share a long land border of over 1600 km and a maritime boundary in the Bay of Bengal. A large population of Indian origin (according to some estimates about 2.5 million) lives in Myanmar. India and Myanmar signed a Treaty of Friendship in 1951. India-Myanmar relations have developed and diversified satisfactorily. A number of agreements enhancing bilateral Cooperation have been signed. Institutional mechanisms for facilitating regular dialogue on a range of issues of bilateral interest have also been established. During 2002, the Indian Consulate General in Mandalay was reopened and the Consulate General of Myanmar was set up in Kolkata. Following the cataclysmic cyclone Nargis which hit Myanmar in May 2008, India responded immediately with relief materials and offers of assistance. Recently, India also announced assistance of US $1 million for humanitarian relief and rehabilitation in the areas affected by the severe earthquake in Shan State in March 2011. Of this amount, US$ 250,000 has been handed over as a cash grant to the Myanmar Government while the remainder will be used for projects and supplies for the earthquake victims. Details of these projects are being worked out in consultation with the concerned authorities of Myanmar. COMMERCIAL AND ECONOMIC RELATIONS
India is the largest market for Burmese exports, buying about USD 220 million worth of goods in 2000; India's exports to Burma stood at USD 75.36 million India is Burmas 4th largest trading partner after Thailand, China and Singapore, and second largest export market after Thailand, absorbing 25 percent of its total exports. India is also the seventh most important source of Burmas imports

Bilateral trade has expanded significantly from US$ 12.4 million in 1980-81 to US$ 1207.56 million in 2009-10. India's imports from Myanmar are dominated by agricultural items (beans, pulses and forest based products form 90% of our imports). Indias main exports to Myanmar are primary and semifinished steel and pharmaceuticals. Following are the export-import figures as per the Central Statistical Organization (CSO), Yangon:-

Myanmar: Trade with India EXPORTS (US$ million) 2004-05 2005-06 341.40 489.10 IMPORTS (US$ million) 83.37 80.07 TOTAL (US$ million) 424.77 569.17

2006-07 2007-08 2008-09 2009-10 2010-11(Apr-Dec)

733.59 727.85 804.96 1010.56 660.15

159.54 173.46 146.18 194.03 126.81

893.13 901.31 951.14 1204.59 786.96

At the institutional level, the Confederation of Indian Industry and the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) entered into an MoU in February, 2000. An MoU was also signed between CII and the Myanmar Computer Federation (MCF) in 2001. In 2004, an Agreement on setting up of a Joint Task Force between Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) and Confederation of India Industry was signed, as was an MoU between Myanmar-India Business Club (MIBC) and Federation of Industries and Commerce of NorthEastern Region. In 2008, during the 3rd Joint Trade Committee Meeting between India and Myanmar, United Bank of India signed an MoU with three Myanmar national banks (Myanma Foreign Trade Bank, Myanma Economic Bank and & Myanma Investment and Commercial Bank) to facilitate trade. However, this channel is being mostly utilized for border trade only. In addition to this, a Bilateral Investment Promotion Agreement (BIPA) and a Double Taxation Avoidance Agreement (DTAA) were also signed in 2008. India and Myanmar are both signatory to the India-ASEAN Trade in Goods Agreement, which was signed in August 2009. Myanmar is also a beneficiary country under Indias Duty Free Tariff Preference Scheme for LDCs. Border trade: India and Myanmar signed a border trade agreement in 1994 and have two operational border trade points (Moreh- Tamu and Zowkhatar Rhi on the 1664 km long border. Agreement has also been reached on setting up a third border trade point at Avakhung-Pansat/Somra. During the 3rd India-Myanmar Joint Trade Committee in October 2008, it was agreed that Border Trade at the existing points would be upgraded to Normal Trade so as to promote bilateral trade between the two countries. Notifications to this effect have been issued by both sides.

TRADE FAIRS & MARKET PROMOTION Recent trade promotion events include the India Pharmaceutical Expo 2011 held in Yangon with the help of PHARMEXCIL and the Myanmar Medical Association, the North East India Conclave held in Yangon and Mandalay in September 2010 by the Indian Chamber of Commerce, Kolkata and the

UMFCCI, visits by the Indo- Myanmar Chamber of Commerce and Industry (IMCCI), Mumbai to Myanmar in January 2010 etc.

TRAINING PROGRAMMES Myanmar is a beneficiary of training programmes under ITEC, TCS of Colombo Plan, GCSS and MGCSS schemes. The slots for Myanmar trainees in 2010-11 were as follows: ITEC 140; TCS 70; GCSS of ICCR 10 and MGCSS - 10. Utilization has been excellent. In 2011-12 also, the interest levels are high. We have also offered training to two sets of local journalists who were given an intensive training at IIMC, New Delhi by XP Division. \ CULTURAL EXCHANGE: Performances by Indian cultural troupes in Myanmar have been organised on a regular basis since 1997. Various cultural troupes have exchanged visits and performed in both countries. In November 2009, a 13-member student group from Myanmar attended SAARC Cultural Festival in India. In December 2009, a popular Myanmar music band Emperor went to India to participate in the South Asian Bands Festival organized by ICCR. They also performed in Shillong, Meghalaya. In January 2010, the Embassy organized the annual Indian Film Festival at Yangon. This event has become a highlight of the Yangon cultural calendar. In March 2010, a famous landscape artist from Myanmar went to Puducherry, India to participate in South Asian Artists Camp organized by ICCR and SEHER. The paintings emerging from that camp were exhibited in the Embassy Auditorium in Novemebr 2010 and received an outstanding response from the local community. A 15-member theatre group from Myanmar went to India participate in South Asian Theatre Festival organized by ICCR and NSD in March 2010. The Abiogenesis band performed Yangon and Mandalay in the last week of May 2010. A Qawalli group (Sabri Brothers) performed in Yangon and other cities in Myanmar in January 2011. There was a packed calendar of commemorative activities for the Rabindranath Tagore 150th birth anniversary celebrations, including a dance drama, seminar, artists camp, film festival etc. All the events were very well received by the Myanmar public and media. Classes in Bharatnatyam and Yoga have been started in the Embassy since December 2010, with the support of the ICCR. COOPERATION BETWEEN INDIA AND MYANMAR IN THE REGIONAL / SUBREGIONAL CONTEXT ASEAN: Myanmar became a member of ASEAN in July 1997. As the only ASEAN country which shares a land border with India, Myanmar is a bridge between India and ASEAN. A few proposals for cooperation have been implemented and some are under discussions with Myanmar within the framework of ASEANs IAI programme.

Problem Areas between India-Myanmar

1) drug trafficking, illegal trade through bordders. 2) the suppression of democracy and the rule of the military junta in Burma. overthrow of the democratic government by the Military of Burma led to strains in ties. Along with much of the world, India condemned the suppression of democracy and Burma ordered the expulsion of the Burmese Indian community, increasing its own isolation from the world. Only China maintained close links with Burma while India supported the pro-democracy movement. 3) influx of Burmese refugees into India.

3)Burmese-China relations. . Concerns and tensions increased in India over China's extensive military
cooperation and involvement in developing ports, naval and intelligence facilities and industries, specifically the upgrading of a naval base in Sittwe, a major seaport located close to the eastern Indian city of Kolkata. 4) India was slow and hesitant in reacting to the 2007 Burmese anti-government protests that had drawn overwhelming international condemnation. India also declared that it had no intention of interfering in Burma's internal affairs and that the Burmese people would have to achieve democracy by themselves. This low-key response has been widely criticised both within India and abroad as weakening India's credentials as a leading democratic nation.

FUTURE PROSPECT: Although the trade between INDIA and MYANMAR is on the rise but is not up to the potential. Future relation wills depends on the following issue: Myanmar 1. 2. 3. 4. India has been too slow and is not in any way organised about its relationship with Myanmar. It lost the gas deal because of a lack of speed and a lack of clarity. China got the gas deal because it was quick, seen as reliable and because of the political support to Myanmar (read UN veto). China has offered to build a port at Kyawk Pyiu, a road, a gas and a crude oil pipeline in two years to Yunnan province. (The contract was awarded to a Chinese company in July 2007). There is a general sense of unease about only Chinese influence in Myanmar India is seen as a potential balancer. This is more the case with the general population that the administration, although the administration seems to be open to more Indian involvement. They realise that India is the other big neighbour. The Indian Diaspora is not being helped by the Indian administration in setting up trade between India and Myanmar. All transactions have to go through Singapore. India has hardly contributed to infrastructure development on the Indo-Myanmar

5.

6. 7.

border with the exception of Moreh and the road there.

India 1. 2. 3. Ambivalence about Myanmar, drive from previous administration is lost. No clear policy or vision with regard to building greater trade links, getting gas or promoting other linkages. Different ministries work separately from each other with different goals and visions. This is especially the case with the Ministry of External Affairs vs. Ministry of Commerce or Ministry of Petroleum. Possibly this applies to the ministry of Defence as well, although that could not be verified. If anything has to come through it has to be pushed through the Prime Ministers Office (for example the Indo-US nuclear deal Everyone tends to shrug and say that the Chinese are better organised, were there earlier and have more resources to throw around. However, no one is willing to drive forward with an Indian agenda. The Look East policy has had little effect on the North East. The original vision of opening up the land locked area seems to have been lost as only Moreh is open. Indias current priorities seem to lie with the Indo-US nuclear deal and after that with the Iran Pakistan India pipeline. There seems to be no long term understanding about what to do about China and Chinas encroaching presence in the region. Indian administrations do not seem to have a long term (20 year+) vision. Everything seems to stop at the next election.

4. 5.

6. 7. 8. 9.

Way to Move Forward: The alternative that suggests itself is the two countries sit down to discuss the issues and come to some agreements so that at least the following can be achieved: i. Border trade is liberated from the shackles of the barter system and allowed to take place in the usual form of general international trade. The list of items to be traded should not be restricted to the ones covered in the existing border trade agreements but extended to include all items permissible as per bilateral and multilateral agreements on trade between the two countries. ii. Trade is officially allowed to take place in the market determined currency exchange rate. iii. Transit of third country products is allowed openly, but as per rules set under multilateral trade agreements or the regional trade agreement to come to force in the coming years. With customs duties already much reduced in India under WTO obligations and slated

to be further slashed between members countries of the forthcoming regional trading block, routing existing informal import flows through formal channels should not be a problem. iv. The problems of moving the existing informal exports from Indian side to Myanmar in a legal way need to be sorted out. While legally exporting such industrial goods like machinery and medicines should not be a problem, the items like kerosene and fertilisers, which are heavily subsidised for domestic users in India and not meant to be subsidised for exports, will present some difficulties.