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India-Myanmar Bilateral Relations: Cooperate Actively and Progress Significantly

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Annual Report on the Development of International Relations in the Indian Ocean Region (2014)

Part of the book series: Current Chinese Economic Report Series ((CCERS))

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Abstract

Under the background of Myanmar’s political transition, economic reform and adjustment of its foreign strategy, India-Myanmar Relations is facing development opportunities. The mutual visiting of high-level officials of the two countries provides opportunities for developing bilateral cooperation in the areas of economy, trade, security and culture. The bilateral economic relationship and trade grow rapidly, the border trade grows gradually and the investment relationship is developing. In the field of security, because of the wish to establish the defense cooperation mechanism of mutually beneficial type, the military exchanges between the two countries have become more frequent, the institutional route of military exchanges and cooperation is gradually shaping. On the basis of the traditional security cooperation field, maritime security cooperation becomes the new element for security cooperation between the two countries. In order to expand its influence in Myanmar, India increased its aid to Myanmar in the hardware facilities and construction of soft power. Enhancing the communication and cooperation within the regional and subregional cooperation frame will provide another platform for the new development of the two countries’ relations.

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Notes

  1. 1.

    Although the bilateral trade agreement signed by India and Myanmar in 1970 laid a solid foundation for the development of bilateral trade, but in the 1980s, the two countries’ trade development was not smooth and the trade volume had dropped compared to the 1970s.

  2. 2.

    Refer to the import and export database of Commerce Department of Indian Ministry of Commerce, http://commerce.nic.in/

  3. 3.

    Embassy of India, Yangon, Myanmar, Bilateral & Economic Relations, http://www.indiaembassyyangon.net/index.php?option=com_content&view=category&layout=blog&id=21&Itemid=122&lang=en

  4. 4.

    The added items included farm tools, bikes, coal, clothing, cooking oil, electrics, steel products, medicines, tea leaves, drinks, motorcycles and spare parts, semi-finished stones, sewing machines, and tricycles with displacement under cc100, etc.

  5. 5.

    “India-Myanmar trade: India adds 22 new items”, REDIFF, November 20, 2012, http://www.rediff.com/money/report/indo-Myanmar-trade-india-adds-22-new-items/20121120.htm

  6. 6.

    There are currently 15 border trade ports of Myanmar which are open to neighboring countries. In December 2013, Burmese government planed to add five border trade ports neighboring with China, Thailand and India, the newly added ports are Mongla along the China-Myanmar border, Misai, Puya and Dongsu along the Myanmar-Thailand border and Htantalan along the India-Myanmar border respectively.

  7. 7.

    “Indian Ambassador meets Kachin State officials”, ELEVEN, December 11, 2013, http://elevenMyanmar.com/national/4390-indian-ambassador-meets-kachin-state-officials

  8. 8.

    According to the data from India’s Finance Ministry, by December 2013, India has signed bilateral investment promotion and protection agreements with 85 countries or regions, 75 of which have come into effect.

  9. 9.

    Rajan (2009, pp. 6–7). http://www.isas.nus.edu.sg/Attachments/PublisherAttachment/ISAS_working%20paper_65_21102009181204.pdf

  10. 10.

    The new law replaced the Foreign Investment Law of the Union of Myanmar issued in 1988. According to the new law, Myanmar allows foreign investment to invest in electricity, oil and gas, mining, manufacturing, hotel and tourism industry, real estate, transportation, communication, architecture and other service industries. New laws stipulates: Foreign enterprises hold companies wholly in Myanmar, with the minimum investment amount determined by the Burmese Management Investment Committee (MIC); The rules restricting foreign investment’s proportion shall not exceed 50 % in some restricted fields were canceled and replaced by that the proportion of investment would be determined together by both investment parties; The duty-free treatment for foreign companies are extended for another 2 years; Foreign companies can lease land in Myanmar, and the lease term is 50 years and can be extended twice with 10 years each time; Ensure to not carry on the nationalization of foreign capital enterprises.

  11. 11.

    Refer to Myanmar’s National Planning and Economic Development Department’s web site, http://www.dica.gov.mm/dicagraph1.htm

  12. 12.

    Ministry of Commerce and Industry, Department of Industrial Policy and Promotion, FACT SHEET ON FOREIGN DIRECT INVESTMENT (FDI), From APRIL 2000 to SEPTEMBER 2013. http://dipp.gov.in/English/Publications/FDI_Statistics/2013/india_FDI_September2013.pdf

  13. 13.

    PM’s address to the think-tanks, intellectuals and Business Community in Yangon, May 29, 2012, Yangon, Myanmar, http://pmindia.gov.in/speech-details.php?nodeid=1180

  14. 14.

    Embassy of India, India Myanmar Industrial Training Centres, Yangon, Myanmar, http://www.indiaembassyyangon.net/index.php?option=com_content&view=article&id=132:india-Myanmar-industrail-training-centres&catid=18:highlights&Itemid=257&lang=en

  15. 15.

    Embassy of India, Training Institutions Set up in Myanmar with INDIAN Assistance, Yangon, Myanmar, http://www.indiaembassyyangon.net/index.php?option=com_content&view=article&id=66:training-institutions&catid=22:hrd-cooperation&Itemid=195&lang=en

  16. 16.

    Embassy of India, Training Institutions Set up in Myanmar with INDIAN Assistance, Yangon, Myanmar, http://www.indiaembassyyangon.net/index.php?option=com_content&view=article&id=66:training-institutions&catid=22:hrd-cooperation&Itemid=195&lang=en

  17. 17.

    Embassy of India, MOU Signing Ceremony, Yangon, Myanmar, October 31, 2013, http://www.indiaembassyyangon.net/index/php?option=com_content&view=article&id=133: mou-signing-ceremony-31-oct-2013&catid=9:what-s-new&Itemid=131&lang=en

  18. 18.

    India’s foreign aid program catches up with its global ambitions, http://respondanet.com/Asia/indias-foreign-aid-program-catches-up-with-its-global-ambitions.html

  19. 19.

    “Myanmar death toll jumps to 78000”, BBC NEWS, http://news.bbc.co.uk/2/hi/aisa-pacific/7405260.stm

  20. 20.

    Shri Moinul Hassan, Rajya Sabha Unstarred Question No. 1924 To Be Answered On 18. 12. 2008, December 18, 2008, http://www.mea.gov.in/rajya-sabha.htm?dtl/10440/Q1924+Deaths+in+cyclone+Nargis

  21. 21.

    “Earth Quaok in Myanmar and India’s Sympathies, Condolences and offer of Help”, in Avtar Singh Bhasin ed., India’s Foreign Relations-2011: Documents, p. 1118. http://www.mea.gov.in/Images/Pdf/India-foreign-relation-2011.pdf

  22. 22.

    MGC members include India, Cambodia, Laos, Myanmar, Thailand and Vietnam.

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Wu, Z. (2015). India-Myanmar Bilateral Relations: Cooperate Actively and Progress Significantly. In: Wang, R., Zhu, C. (eds) Annual Report on the Development of International Relations in the Indian Ocean Region (2014). Current Chinese Economic Report Series. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-45940-9_7

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  • DOI: https://doi.org/10.1007/978-3-662-45940-9_7

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