The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation, or BIMSTEC, was established in 1997. It’s a coalition of seven countries: Bangladesh, Bhutan, India, Nepal, Sri Lanka, Thailand, and Myanmar.
Together, these nations make up 22% of the global population and contribute 3.8% to the world’s GDP.
BIMSTEC primarily focuses on boosting economic collaboration and improving transport infrastructure. It aims to enhance the connectivity between South Asia and Southeast Asia, two regions that are currently among the least interconnected globally.
14 Focus Areas
The ambit of cooperation within the BIMSTEC includes 14 areas—Agriculture, Tourism, Transport and Communication, Counter-terrorism and Transnational Crime, Environment and Disaster Management, Trade and Investment, Cultural Cooperation, Energy, Poverty Alleviation, Technology, Public Health, Fisheries, People-to-People Contact, and Climate Change.
Recent BIMSTEC Summits: A Shift in Focus Towards Regional Connectivity
- BIMSTEC was dormant for many years after its establishment. However, in 2014, as the ineffectiveness of SAARC became glaringly apparent and the Bay of Bengal region’s economic and strategic importance rose, South Asian members within BIMSTEC began to advocate for economic unity and regional connectivity.
- In 2016, the first BRICS-BIMSTEC summit took place in Goa, India. This was followed by the fourth summit in Kathmandu and the fifth in Colombo.
- Cooperation was a key theme across these summits.
- Member states signed agreements to share technology and tackle transnational crimes. Diplomatic academies also came together to cooperate.
- BIMSTEC members involved the Asian Development Bank in their 10-year connectivity master plan.
- Thailand will chair the upcoming sixth BIMSTEC summit in November 2023.
- The previous, fifth BIMSTEC summit saw member states approve the BIMSTEC Master Plan for Transport Connectivity. This plan consists of 267 main projects worth a total of US$ 124 billion.
- The majority of these projects, between 50 and 61 per cent, belong to the roads and road transportation subsector.
The Importance Of BIMSTEC To India
- India sees BIMSTEC as a key platform that merges its Act East and Neighbourhood Policies. This alignment also aligns with India’s strategic view of the Indo-Pacific region.
- The rejuvenation of BIMSTEC is largely due to India’s renewed interest, as evidenced by the 2016 BRICS-BIMSTEC Outreach Summit following the cancellation of the SAARC Summit.
- India further underscored its commitment to BIMSTEC by inviting its leaders to the Prime Minister’s 2019 swearing-in ceremony. External Affairs Minister, Dr S. Jaishankar, also spoke on the potential of BIMSTEC nations.
- As tensions with Pakistan led to SAARC’s failure, India has shifted its focus towards BIMSTEC to broaden its influence in the Indo-Pacific region.
- BIMSTEC offers India an opportunity to promote economic and political growth under its ‘Act East’ policy. It also enables stronger ties with the Association of South East Asian Nations (ASEAN) and fosters a peaceful, prosperous environment in the Bay of Bengal region.
Infrastructure Developments Bolstering ASEAN-India Connectivity
- India became ASEAN’s third dialogue partner in 2013, leading to the creation of the ASEAN Connectivity Coordinating Committee-India Meeting.
- The BIMSTEC organisation, including Myanmar and Thailand, can serve as a bridge for these ASEAN-India projects.
- Significant progress has been observed in two major developments: the India-Myanmar-Thailand Trilateral Highway and the Kaladan Multimodal Project, both of which have potential for extension to Cambodia, Laos, and Vietnam.
- India has committed a US$1-billion line of credit to support projects that physically and digitally connect it with the ASEAN region.
- Additionally, India has set up a Project Development Fund of US$5000-million. This fund aims to encourage the establishment of manufacturing hubs in Cambodia, Laos, Myanmar, and Vietnam.
Leveraging Northeast’s Strategic Position for Thriving Regional Cooperation
- India’s Northeast location serves as a geographic advantage for its Act East policy.
- The Northeast links ‘Neighborhood First’ and ‘Act East’, two primary pillars of Indian foreign policy.
- Four BIMSTEC countries – Bangladesh, Bhutan, Nepal, and Myanmar – share borders with the Northeast, raising its importance for regional cooperation.
- The Northeast comprises 8% of India’s land, is home to 3.8% of its population, and shares approximately 5,300 km of international borders.
- India envisions this region as a potential hub for attracting more investments via enhanced cross-border connectivity, particularly with Bangladesh, Myanmar, and Thailand.
- The Northeast region presents an economic opportunity worth trillions of dollars.
- This untapped potential encompasses improved transportation, budding e-commerce, enhanced border facilities, and modernised cross-border supply chains.
- Indian policymakers foresee a surge in exports and investment inflow if this opportunity is capitalised on.
- The process of regional integration could lead the way towards greater global economic collaboration.
- Northeastern states are set to experience development through this new strategy.
- This strategy assists in connecting India’s inland economy to global markets.
- Connection is achieved through maritime and border hubs on the eastern coast with Bangladesh and Myanmar.
- India’s support of the Asian Development Bank’s East Coast Economic Corridor is evident.
- A regional route from Kolkata to Kanyakumari underscores the country’s internal focus.
- This focus ties into India’s new Bay of Bengal strategy.
Utilising BIMSTEC For Strengthening India’s Position In The Indo-Pacific Region
- BIMSTEC is crucial for India’s security in the Indo-Pacific region.
- India gets a chance to extend its influence in Southeast outside its ASEAN engagements, thanks to BIMSTEC.
- Within BIMSTEC, India is the informal leader as its activation largely depends on India’s willingness.
- This is a golden opportunity for India to improve its relations with its neighbours and dispel its ‘big brother’ image.
- Due to certain credibility issues and hegemonic actions, India’s image in its neighbourhood and extended neighbourhood has faltered.
- BIMSTEC also opens up the possibility for India to enhance relations with ASEAN, and it is mutually beneficial.
Key Challenges Hindering The Success of BIMSTEC
- BIMSTEC faces challenges due to conflicts between member countries.
- Tensions persist, such as the Bangladesh–Myanmar disagreement over the Rohingya crisis, India–Nepal border issues, and the India–Sri Lanka dispute over fishing and detention of fishermen.
- These conflicts have slowed down the organisation’s operations.
- Growing bilateral relations have diverted members’ attention, reducing their commitment to BIMSTEC.
- In recent years, members have prioritised bilateral or multilateral initiatives, like the India–Myanmar–Thailand Highway Project, the Kaladan River project, and the Bhutan Bangladesh India Nepal initiative.
- This focus shift has limited the active participation of member nations in BIMSTEC.
- The internal situations of member countries pose additional challenges.
- The BIMSTEC region is a hotspot for weapon and drug trafficking, exacerbating instability in India’s Northeast.
- While all BIMSTEC members support the concepts of regionalism and sub-regionalism, their priorities differ.
- The recent pandemic has forced each member to readjust its national priorities, adding another layer of complexity to BIMSTEC’s operations.
- The Bay of Bengal and the Indo-Pacific have seen a rise in strategic importance, gaining international attention.
- BIMSTEC members face challenges due to fears and uncertainties about emerging alliances and their political and economic impact.
- Despite the potential for economic gains, there’s resistance towards a free trade agreement and greater economic interdependence.
- Each member’s economic needs and requirements are diverse.
- Based on previous trends, BIMSTEC’s growth is likely to be slow and incremental.
- The possibility of an immediate, transformational shift towards economic interdependence is low.
- The BIMSTEC region is experiencing stress due to political upheavals in Myanmar and Thailand.
- The coup in Myanmar, in February 2021, has had a negative effect on the country’s economy and has implications for the entire region.
- Key development projects in India’s Northeast region, like the Kaladan multimodal project, are at risk.
- This project, of which a significant portion passes through Myanmar’s Rakhine state, faces concerns due to a 110 km road within the country.
- The coup has further strained various infrastructure projects in Myanmar.
- Nationwide protests, closed banks and financial institutions, withdrawn international investments, and halted foreign aid, specifically from Japan, are all exacerbating the country’s economic woes.
- The Northeast and wider BIMSTEC region also confront issues like illegal migration, and drug and human trafficking.
- Drug production and trafficking are common in the Golden Triangle region.
- Northeast India lies on the heroin trafficking route with several labs near the Indo-Myanmar border.
Revitalising BIMSTEC: A Fresh Perspective
- BIMSTEC has recently started to improve its institutional mechanisms.
- However, the path to efficient operations is long and potentially difficult.
- More inclusivity is essential for BIMSTEC’s work, which includes involving various stakeholders, particularly local communities.
- A dispute-resolution mechanism, based on consensus and deliberation, should be considered to prevent national issues from slowing BIMSTEC’s progress.
- As BIMSTEC aims to form a Bay of Bengal Community, it could be beneficial to invite Indonesia, a prominent ASEAN member, to join as an observer state.
- Indonesia’s geographic location and ASEAN membership could potentially enhance BIMSTEC’s initiatives.
Balancing Act For India’s ‘Act East’ Policy
- The successful implementation of India’s Act East policy depends on balancing regional sociopolitical factors.
- This balance includes developing land, sea, and air connections with BIMSTEC and ASEAN countries.
- Achieving stability in the Northeast will be challenging without involving regional neighbors as stakeholders.