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
  • HSE 2025 Result : Science Full Result
  • HSE 2025 Result : Arts Full Result
  • HSE 2025 Result : Commerce Full Result
  • HSE 2025 Info
  • Violence in Manipur 2023-2025 : Timeline
  • Khongjom Day - April 23 #1 : Gallery
  • Thang Ta finds new energy amid peace
  • Tawang: Geostrategic importance for India
  • Thadou appeal for community understanding
  • Census 2001 & delimitation in Manipur
  • Condemns Pahalgam Terror- Calls for Action
  • Failing to read & control situation
  • Visible efforts essential for public trust
  • MK Binodini Devi's short story 'Tune'
  • Prof Moirangthem Marjit chairs SETSM, Hanoi
  • Will the two Asian giants always be in Rivalry?
  • Rebellion surfaces in rebel group NSCN-IM
  • Child Labour :: Poem
  • Pharmaceutical Waste: Threat to public health
  • Call for delimitation, NRC : Check illegal
  • Death knell for noble healthcare schemes
  • 175th Anniv- Maharaj Narasingh #2 : Gallery
  • World Earth Day : Gallery
  • Understand Suicide & Mental Health Support
  • Manipur champion @ Natl School Games
  • World Earth Day celebrated at MTU
  • The Earth Day 2025: Our power, our planet
  • How long will PR continue ?
  • Eviction drive need of the hour
  • Tamnalai : World Theater Day #1: Gallery
  • Chumthang Makhong : Play Synopsis
  • The demands of village volunteers
  • Missing you :: Poem
  • AI offers hope for beekeepers battling pest
  • Rural women, climate shock: Beijing report
  • From March 8, 2025 to April 22, 2025
  • Boosting morale of job seekers
  • Radio E-pao: 5 new songs added ...
  • The Power of Confident Communication
  • 2nd State Level Soccer Futsal Championship
  • April 21: National Public Relations Day
  • The resurrection of Jesus & its impact
  • Bhalla saab solution kithe ?
  • Training on Mushroom Cultivation
  • JNIMS turned into a dumping site
  • Sub-par work as centre vows US-level roads
  • Cheiraoba by Manipuri in Korea : Gallery
  • Kallakchei, Hungchor, Gainilung : eMing
  • Sri Lanka "Ayubowan" lasting impression
  • GoI must prepare to handle post-Muivah
  • Vice President felicitated Mughavi Tuccu
  • The Power of Poppy - 77 :: Poem
  • Rabies outbreak in Manipur
  • Athoubashinggi Numit #2 : Gallery
  • Pangolin & fight against Climate Change
  • Condemn violent assault against Konsakhul
  • Spring's symphony in my farmhouse :: Poem
  • National Conference on Elderly at RGU
  • The corruption & materialism of Judas
  • Manipur under PR for over 2 months
  • Bid to form government amid public scrutiny
  • 175th Anniv- Maharaj Narasingh #1 : Gallery
  • AI & technology in Manipur's agriculture
  • 4 Manipur players in Indian Women's Hockey
  • Gender justice & health equity are linked but ...
  • Digital marketing: Oxygen of modern business
  • Spring fruits that boost collagen in your body
  • Pot holed roads & others: Surviving Manipur
  • Frustration over centre failure to resolve crisis
  • Pichakari @Govindajee Temple #2 : Gallery
  • Poshan Pakhwada @ MU : Gallery
  • Startup Surge Manipur: Startup Venture Fund
  • My messy room :: Poem
  • Why WAQF Act, 2025 is unconstitutional
  • Emerging politics at play
  • National Fire Service Week
  • Observance of Thang-Ta Day #2 : Gallery
  • Cheiraoba in South Korea
  • Festival of Maram Achouba Khoushaba
  • The Hidden Strength in Falling Short
  • World Health Day 2025 & our Environment
  • Career after marriage: Flight or confusion?
  • Ban on SUP has come into force
  • Preying on abandoned houses
  • Sajibu Cheiraoba Chak Katpa #2 : Gallery
  • Climate Change : Spring revival in Ukhrul
  • Merger Agreement: Meaningless paper ?
  • Yaingang in sunscreens
  • Will all children be born free of HIV by 2030 ?
  • Athoubashinggi Numit #1 : Gallery
  • Day 4 : Yaoshang Sports #1 : Gallery
  • Narendra Ningomba - 'Iboyaima Award 2025'
  • Naga leaders Isak Sumi & Tikhak expound
  • Parrotisation in post-colonial intellectualism
  • Call me Burma :: Poem
  • Claim the crown if you have 30 !
  • Marching towards the 2 year mark
  • Train service vow amid fear over migrants
  • Cheirao-chingkaba @Chinga : Gallery
  • Why words matter in Manipur
  • Appeal for a Way Forward in Manipur
  • Birth Anniv of BR Ambedkar at MU
  • Final Call : Phase-2 of MFA 2024-25
  • The Power of Poppy - 76 :: Poem
  • Astronauts as a Career Choice
  • 16th Annual Art Exhibition #1: Gallery
  • Classic FA's Inspirational Journey in RFDL
  • Shifting weather patterns driving dengue cases
  • Early Childhood Caries: Public health concern
  • Lord Ramacandra's glorious examples
  • Media, women, & sensationalism
  • Cocking a snook at Delhi meet
  • Lobbying for preferred place of posting
  • Indo-Naga Talks (From 2012) :: Timeline
  • Ougri Lirol :: Part 1 : Ooba Video
  • Privileges & Safeguards for STs of Manipur
  • Personal & Professional Development
  • Ode to Peace :: Poem
  • Entries for 17th Manipur State Film Awards
  • Makeup tips to illuminate your look this spring
  • AI-based drones to revolutionise agriculture
  • Of shabby & pot holed roads: Defining Imphal
  • Mizoram feeling heat of sheltering refugees
  • The last ember glows : Will we let it burn ?
  • Business Idea Competition @ Manipur Univ
  • 1/2 of women cant make decision on health
  • 2nd State Level Soccer Futsal Championship
  • The life of Mahavir Bhagwan
  • 'Yummy Talent Fest' at Shillong
  • Another ban on single use plastic
  • Reasons for dissent against AFSPA
  • Mei Loukhatpa @Laipubam : Gallery
  • RK Bidur : Honouring a legacy
  • Appreciates peace dialogue at Delhi
  • Sigiriya : Sri Lanka's top tourist attraction
  • Mami Numit & Foundation Day SN Chand
  • Study Tour to Sikkim & Darjeeling
  • Mum on pre-conditions at Delhi
  • Tension over land disputes amid ethnic feud
  • Indigenous People's Fest #2 : Gallery
  • Jugeshwar Kshetrimayum: Martial Art Champ
  • Delimitation based on Census 2001 - II
  • Defending Our Faith, Our Lands, Our Rights
  • Tariffs: Time for Manipur to Rethink Its Future
  • Is deliverance always proportional to faith ?
  • 3rd AGM of Madhurupa Cancer Society
  • Phamba Challadi Hippa Challi
  • BJP on the back foot
  • Yaoshang Halankar #1 : Gallery
  • Condemns heinous incident at Konsakhul
  • Hun-Thadou Cultural Festival Concluded
  • World Health Day 2025
  • Living in Zone-V: The vulnerability
  • Solidarity with Myanmar Earthquake Victims
  • Career in sports can be rewarding
  • After Delhi meet of April 5, what next ?
  • Multiple rounds of tripartite talks inevitable
  • Pot Lannaba : Mera Houchongba #2 : Gallery
  • Delimitation : Why NRC must precede
  • Manipur tourism - insights from Sri Lanka
  • Mathematics as most useful & easiest subject
  • 10 Habits That Will Make You Unstoppable
  • The Power of Poppy - 75 :: Poem
  • Freedom of authorship Vs editorial policy
  • 3-language study model that aligns with NEP
  • Observance of World Aquatic Animal Day
  • World Autism Awareness Day 2025
  • Upliftment of Langmei Hr Secondary School
  • Setting pre-conditions for Delhi talk
  • Cong leaders note menace of drugs, influx
  • Yaoshang Mei Thaba #3 : Gallery
  • CAU produces hygienic Hawaijar maker
  • Delimitation based on Census 2001 #1
  • Is long HIV treatment good as daily pills ?
  • Sunburn : EDM festival at Shillong
  • Boost your skin with spring fruits
  • 23 months on and Delhi still lost !
  • Growing pitch for NRC
  • Thabal Chongba reclaims its cultural soul
  • Caregiver burden of raising an Autistic child
  • Supreme Court Judges visit : Gallery
  • Manipur: Champion 21st Natl Mountain Biking
  • Solution to water crisis
  • The Eternal I
  • Setting pre-conditions for talks
  • AFSPA expanded in 'peaceful' valley
  • Id-ul-Fitr @ Yairipok, Kshetrigao : Gallery
  • NRC before Delimitation in Manipur
  • Zeilad Lake : A common heritage
  • Right to safe abortion cannot be dislocated
  • World Theater Day
  • The shackles of ideas in digital India
  • The stand against delimitation
  • Myanmar earthquakes & vulnerable Northeast
  • Shortcomings - Delimitation in Manipur
  • "Tulsi Nonglik" at CAU, Lamphelpat
  • The Power of Preparation
  • Catherine Soyamphi: Turn waste into wealth
  • 'Common Platform' and 'Common Draft'
  • The Wounded Mercenary :: Poem
  • Mohan and Modi in Nagpur
  • Sajibu Cheiraoba Chak Katpa #1 : Gallery
  • 27th PANE Foundation Day
  • MoU with Nittur IAS Academy
  • Sleep State Impasse : A mass digital disorder
  • TIM to attend Hun Thadou Cultural Fest
  • First-ever ABH-incompatible Kidney transplant
  • Yaoshang Sports @ Kwakeithel #2 : Gallery
  • April Calendar for Year 2025 : Tools
  • Tamnalai :: Play Synopsis
  • Sajibu Cheiraoba- Meitei New Year Day: Book
  • Rise of AI: Story of future, dreams & nightmare
  • Funding crisis into opportunity to end TB
  • The Power of Poppy - 74 :: Poem
  • Saroi Khangba @ Imphal #2 : Gallery
  • Indigenous Women's Rights in Manipur
  • A review of In Xanadu: A Quest
  • Open Letter to Shri Amit Shah
  • Strategy for resource mobilization
  • Haircare tips to bloom in spring
  • Over a month since PR came into force
  • Near consensus on NRC update
  • Dr Aheibam Koireng: A prolific academician
  • Abolish Institution of Hereditary Chieftainship
  • Seminar on Career Choice at Kanglatongbi
  • 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
  • The Power of Forgiveness & Leadership
  • Yaoshang Sports @ Kwakeithel #1 : Gallery
  • Non-violence for defeating Kuki militants
  • World Water Day @ MU : Gallery
  • 14th AMWJU Annual Sports Meet #2 : Gallery
  • Thang-Ta for emotional balance
  • Yaoshang Mei Thaba #2 : Gallery
  • Day 5: Yaoshang Sports : Gallery
  • National Bamboo Festival : Gallery
  • Yaoshang Pichakari #2 : Gallery
  • Yaoshang Mei Loukhatpa #4 : Gallery
  • Yaoshang Mei Loukhatpa @Kangla : Gallery
  • Yaoshang Mei Thaba @ Imphal #1 : Gallery
  • 1st AMAND Football Cup @ Pune : Gallery
  • The Untold Meaning of MEETEI and MEITEI
  • In Memory of Aheibam Koireng
  • Featured Front Page Photo 2025 #1: Gallery
  • Moirangthem Marjit chairs CCCIS, Hong Kong
  • President's Rule in Manipur : 1967 - 2025
  • AIR Radio Imphal Station - Live streaming
  • Meitei Mayek Tamba : Online Classroom #5
  • Downloadable Manipuri Calendar :: 2025
  • GHOST of PEACE :: Download Booklet
  • SPONSORED ADS