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Indo-Myanmar Relations – A Review, C. S. Kuppuswamy, Paper no. 2043, South Asia Analysis Group, 30 November 2006

 

 

Introduction 

The Indo-Myanmar relations since 1948 (when Myanmar became independent) can be considered as cordial and friendly (from 1948 to 1962), frozen or strained (from 1962 to 1988) and flourishing from 1988 till date.  The reasons for these radical changes in the ties can be attributed to both Myanmar for its isolationist policy adopted by the military regime and to India for its shift from an idealist or moralistic to realistic or pragmatic policy adopted.  India’s Look-East policy has been the main driving force for improvement in the bilateral relations. 

Strategic Importance

The reasons for the strategic importance of Myanmar to India are: 

  • Myanmar is located at the tri junction of East Asia, South Asia and South East Asia.
  • Myanmar is the second largest of India’s neighbours and the largest on the eastern flank.
  • Myanmar provides the Eastern littoral of the Bay of Bengal.  An unfriendly Myanmar hosting foreign naval presence would pose a threat to Indian security.
  • Myanmar has a big border with China in the north contiguous with the Sino-Indian disputed border which has many implications.
  • India has both a land border (1640 km) and a maritime boundary with Myanmar in the Bay of Bengal.  Four Indian states (Arunachal Pradesh, Nagaland, Manipur and Mizoram) border Myanmar (Kachin & Chin states and Sagaing Division)
  • China can gain access to Indian Ocean through Myanmar

Economic Importance 

Myanmar is India’s gateway to ASEAN as it is the only country of this grouping which has a land and maritime boundary with India.  With India becoming a summit level partner of ASEAN and a member of the East Asia Summit, improved relations with Myanmar will be beneficial in many respects.  Besides Myanmar and India are members of some sub regional groupings such as the BIMST-EC and the Mekong Ganga Cooperation. 

China has raised its economic profile in SE Asia, particularly in Myanmar despite the sanctions imposed by the west.  India should not be left behind especially in view of the large oil and gas resources available in Myanmar and much needed by India. 

Security Considerations 

The major security considerations are:

  • Insurgency in the North Eastern States of India – Some of the insurgent groups have established camps in Myanmar and operating from Myanmarese  territory
  • Smuggling of arms (by both land and sea)
  • Drug trafficking and narco-terrorism.
  • Illegal immigration from Yunnan into Northern Myanmar and association of Chinese workers in road construction activities

Bilateral Relations    

!948-1962.  Relations were friendly and cordial during the days of Prime Minister Nehru and Prime Minister U Nu.  India provided economic and military assistance .Both were members of the Non Aligned Movement. 

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. Myanmar’s anti Soviet stance strained relations with India being pro-Soviet at that time. Myanmar refused to become a member of the Commonwealth. Indian Consulate in Mandalay had to be closed. Myanmar withdrew from NAM in 1979. 

1988-Till date.  As a result of the sympathy of the Indian government to the pro democracy movement which started in 1988, the relations were strained.  India had even accommodated a large number of pro democracy refugees in camps in NE India.  All India Radio programmes were criticising the military regime. In 1993 India reversed its stance with a more realistic and pragmatic policy and started engaging the military regime.  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 leader in the junta, in November 2000, helped the turn round in the relations. 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. 

Bilateral Trade   

Bilateral Trade has expanded significantly from US $ 12.4 million in 1980-81 to US $ 425 million in 2004-05.  India’s imports from Myanmar are primarily agricultural and forest based products (especially beans and pulses) and main exports to Myanmar are primary and semi finished steel and pharmaceuticals.  The balance of trade is heavily in favour of Myanmar. 

The Confederation of Indian Industry (CII) constituted the India-Myanmar Joint Task Force during the “Made in India” show organized by the CII in Yangon in February 2004. It has met often both in India and Myanmar and has helped in giving a big fillip to the bilateral trade.

The Confederation of Indian Industry (CII) has entered into a Memorandum of Understanding with the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) and the Myanmar Computer Federation.  Government of India has extended a number of general and project specific credit lines to Myanmar in the last few years for improvement of the trade relations. 

Border Trade  

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 (Manipur, India) and Tamu (Sagaing Division, Myanmar).  Subsequently both governments had agreed to open four check posts which inclue Pangsau pass, Paletwa, Lungwa-Yanyong and Pangsha-Pangnyo between the nations. Opening of border posts will help in checking the border trade and making it official, curb the illegal trade of goods and monitor the activities of the insurgent groups between India and Myanmar. 

 The border trade which had a spurt in the beginning with export of Indian goods worth Rupees 31 crores and imports from Myanmar woth 15 crores in 1996-97  had declined to a level of Rupees 5 crores in export and import by 2004-05 according to official statistics.

The reasons for decline in the border trade are mainly due to a) rise of popularity of commodities imported from third countries by Myanmar (primarily China) which find their way into India and b) frequent intimidation and monetary demands by numerous insurgent groups operating in border areas. 

Trans border trade has failed to provide any benefit to local people and there are procedural hiccups for obtaining licenses as well. 

Border Management 

India and Myanmar have regular border post meetings at Moreh-Tamu.  It has been agreed to have four more border posts to facilitate army meetings.  They are at Lungwa (Mon district-Nagaland), Bihang (Churchandpur district-Manipur) and at Sapi and Zokawathar (Mizoram).  A 400 km border with Myanmar is already fenced and is being improved by raising the height.  A stretch of 14 km near the international boundary at Moreh has also been planned to be fenced.  The fencing is important in view of the rampant narcotic trade along the Indo-Myanmar border. 

Infrastructure Projects  in Myanmar. 

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.  It will also be maintained by India up to March 2008. 

India is involved in the India-Myanmar-Thailand Trilateral Highway Project. 

India has extended project specific credit lines for up gradation of Yangon-Mandalay  Trunk line, an optical fibre link between Moreh and Mandalay and ADSL systems in Yangon & Mandalay. 

Other projects at various stages of completion include construction/upgradation of Rhi-Tidim and Rhi-Falam road sections in Myanmar, the Kaladan Multimodal Transport project and the Tamanthi Hydro Electric power project. 

India has also offered to help Myanmar in improving its rail links such as the Yangon-Mandalay sector as well as connecting them to rail links on the Indian side. 

A media report of June 2006 also indicates that the Indian Commerce Ministry has embarked upon an ambitious project to develop Sittwe port in Myanmar and to open up a sea route connecting it to Mizoram in North East India. For this purpose, the navigable river Kaladon in Mizoram is to be developed.

Oil and Gas 

Myanmar has reportedly world’s tenth biggest gas reserves estimated to be more than 90 trillion cubic feet.  India has evinced keen interest to procure gas from Myanmar.  ONGC Videsh Limited  (OVL) and Gas Authority of India Limited (GAIL) hold 30 % stakes in the exploration and production  of gas in Myanmar’s A1 and A3 off shore blocks located in Sittwe Area of Arakan State. 

The earlier proposal to bring the gas in Myanmar by a pipeline through Bangladesh to India had to be dropped because of unreasonable demands from Bangladesh.  The latest proposal is to bring the gas through a 1575 Km pipeline  (longer than the Bangladesh route) from Sittwe port in Myanmar through Aizwal –Silchar-Guahawti-Siliguri to Gaya  linking it to Haldia-Jagadishpur oil pipeline in Gaya (Bihar). 

India has even offered to buy Myanmar gas and import it through ship till the pipeline is laid. 

Military to Military Contacts 

As early as in 1995 India and Myanmar armies had conducted a joint military operation (called Golden Bird) against some North Eastern insurgent groups (ULFA, NSCN, PLA, PLF& KNA) though this operation was abhorted after Aung San Suu Kyi was  awarded the Nehru Peace prize for International Understanding. Myanmar resumed its military operations against the insurgents from Feb 2000 to May 2001.  

 In January 2000, the Chief of Army Staff General V.P.Malik met his counterpart General Maung Aye in Yangon and in Shillong and in turn the Number 2 of the SPDC had visited India twice in 2000.  Since then there have been regular visits by the top officials of the three services of the two countries. In 2005-06 all the three Indian services Chiefs had visited Myanmar. 

India has offered to provide battlefield training to soldiers and supply uniforms.  India had also leased a helicopter squadron and offered help in maintaining Russian military equipment with the Myanmar Army. 

Since 2003, there have been joint maneuvers with the Myanmar Navy.  There have been a number of port calls by the Indian Navy and a few by the Myanmar Navy. 

True to the assurances of General Than Shwe  during his visit to India in October 2004, the Myanmar Army had conducted military operations against the Indian insurgents operating in their territory  during December 2005 and again in 2006. 

High Level Visits (Since 2004)  

The high point in the bilateral relations was the visit of Senior General Than Shwe, Chairman, State Peace and Development Council from 24 to 29 October 2004.  He was accompanied by a high level delegation comprising eight cabinet ministers. He met with the Indian President, Prime Minister and the Vice-President. A MoU for cooperation in the field of Non-traditional Security Issues and a MoU on the Tamanthi Hydroelectric Project on Chindwin river in Myanmar were signed. The Chairman had categorically assured that Myanmar would not allow its territory for hostile activity against India. 

There has been  regular and frequent exchanges of visits by ministers from both countries.  Foreign Secretary of India had also visited in Oct 2004 and June 2006.  The Chiefs of Army, Air force and Navy had also visited Myanmar in 2005-06.  

The visit of the Indian President Dr. APJ Abdul Kalam to Myanmar from 8-11 March 2006 was a landmark in that this was the first head of state/government visit to Myanmar after 1987 when Rajiv Gandhi visited Myanmar. A number of agreements and Memorandums of Understanding were signed during this visit. 

Important bilateral Agreements and MoUs  

India has entered into a number of agreements and Memorandums of  Understanding with Myanmar over the years.  

In 1951 India and Myanmar signed a Treaty of Friendship. 

A boundary agreement between India & Myanmar was signed in 1967. 

Maritime boundary between the two countries was defined by a maritime delimitation agreement in 1986. 

The first Border Trade Agreement was signed in Delhi in 1994.

A science and technology agreement was signed between the two countries in 1999 under which a Joint Working Group (JWG) was set up.  The JWG has held four Meetings between  2001-04. 

A Tripartite Agreement between India, Myanmar and Thailand has also been entered into for determining the tri junction point in Andaman Sea. 

During 2003, seven agreements /MoUs were signed viz the protocol on consultations between the Ministry of External Affairs and the Ministry of Foreign Affairs of Myanmar; MoU for the deputation of teaching personnel from India for short term courses at Universities in Myanmar; establishment of the Joint Trade Committee; MoU on cooperation in Communications, IT and services; Agreement on extension of a credit line of US $ 25million to Government of Myanmar;  Agreement on Visa exemption for Official and Diplomatic passport holders and an Mou between HRD Ministry of India and Education Ministry of Myanmar. 

During 2004 eight agreements /MoUs were concluded between India and Myanmar.  Of these the notable ones were the MoU on the cooperation of Non-traditional Security Issues and the MoU on the Tamanthi Hydro Electric Power Project. 

In 2005 a MoU on Energy Cooperation was signed. 

In 2006, MoUs on Cooperation in the Petroleum Sector, Cooperation in Buddhist Studies and a Framework Agreement for mutual Cooperation in the field of Remote Sensing were signed. 

Cooperation between India and Mynmar in Regional/Sub-Regional Context.     

ASEAN:  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 within the framework of ASEAN’s IAI Progamme.  Of these the Myanmar-India Entrepreneurship Development Centre is expected to be launched soon. 

Bay of Bengal Initiative for Multi Sectoral Technical and Economic Cooperation (BIMSTEC): Myanmar became a member of BIMSTEC in 1997.  BIMSTEC has identified six sectors of cooperation, for each of which a lead country has been designated.  Myanmar is the lead country for the energy sector.  Myanmar trades mostly with Thailand and India in the BIMSTEC region.  Myanmar’s major exports to India are agricultural products like beans, pulses, and maize and forest products such as teak and hardwoods.  Its imports are chemical products, pharmaceuticals, electrical appliances and transport equipment. 

Mekong Ganga Cooperation (MGC):  Myanmar is a member of the MGC since its inception in 2000. MGC is an initiative by six countries – India and five ASEAN countries namely Cambodia, Laos, Myanmar, Thailand and Vietnam – for cooperation in the fields of tourism, education, culture, transport and communication. 

Forum on Regional Economic Cooperation among Bangladesh-China-India-Myanmar (BCIM):  The BCIM initiative has attracted much attention in India, as it has the potential to bring three of India’s neighbours closer to a joint pursuit of common prosperity through the increasing use of mechanisms of regional integration. The sixth forum of the BCIM was held at Delhi in March 2006. 

The 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. 

China is the major supplier of military hardware to Myanmar.  China’s military sales to Myanmar include jet fighters, armoured vehicles and naval vessels valued at around $ 2 billion.  China is helping Myanmar to modernize its naval bases in Hiangyyi, Coco, Akyab, Zadetkyi Kyun, Mergui and Khankphyu.  China has a maritime reconnaissance and electronic intelligence station in Coco islands and is building a base at this location.  The ultimate aim is to secure a corridor to the Indian Ocean from South China via Myanmar.  Thanks to China, the Myanmar army is the second largest in South East Asia (after Vietnam) and it has expanded from 180000 men to more than 450000. 

The Chinese have built an all weather road from Kunming in Southern China to Mandalay in Central Myanmar. 

In the year 2004, it gave Myanmar $ 200 million in aid.  The trade between the two countries has more than doubled in five years to $ 1.1 billion in 2004 as per the Chinese Government statistics.  China is officially Myanmar’s third largest trading partner after Singapore and Thailand not taking into account the informal border trade. 

According to a report in Time (January 30, 2006), “more than $ 400 million in trade funnels through the Jiegao Border Trade Economic Zone each year.  China exports household appliances, chemicals and medicines and Burma ships back jade, sea food and timber”. 

India is concerned with China’s increasing engagement with Myanmar’s military junta, especially in improving the naval facilities including the setting up of four electronic listening posts along the Bay of Bengal and the Andaman Sea.  Indian Foreign Secretary (prior to the recent visit of the Indian President) in reply to a question on India-China rivalry replied that “It is not appropriate to look for India-China rivalry at every nook and corner of Asia. The India-Myanmar relations stand on their own”. 

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. 

Conclusion 

The relations between India and Myanmar have been chequered with numerous ups and downs.  However since the visit of Senior General Than Shwe in October 2004, the relations have been on the upswing gaining from strength to strength every year. 

India’s long term interests may be better served by a democratic regime in Myanmar but the present approach is to help Myanmar in building its democratic institutions without embarrassing or isolating the junta but through official and diplomatic channels. 

The strategic and security considerations outweigh India’s concern for democracy in Myanmar. 

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 betterment. 

It has been proved beyond doubt that economic sanctions have not deterred the military regime in pursuing its agenda.  Hence diplomatic persuasion and economic aid linked with progress in democratic reforms may be a viable solution. Hence India is perhaps on the right path in engaging the military junta in a constructive manner but should be watchful of the efforts of the other nations in the region to introduce a semblance of democracy in Myanmar.