India’s Economic Relations with Myanmar: A Study of Border Trade

Abstract

ABSTRACT The purpose of this paper is to analyze the nature of border trade between India and Myanmar. India is an emerging power with fast economic growth, geographic size, natural resources, and dynamic population. It has adopted a new foreign policy and economic orientation towards its South East Asian bordering neighbors including Myanmar. China, however, initiated a global strategy-the Belt and Road Initiative in 2013. This study looks into the geopolitics of the Sino-Indian rivalry in the context of the global power configurations and inter-state economic relations. To this end, the methodology of a case study for Moreh-Tamu border trade along the Indo-Myanmar cross-border region has been applied in this paper. The findings reveal growing trade relations and bilateral economic engagements of both India and Myanmar. India’s Northeastern border issues, ASEAN connectivity, the BCIM economic corridor of the BRI, India’s neighborhood policy, as well as the geo-political dynamics, among other factors, are the principal factors affecting India-Myanmar border trade. The problems of the Sino-Indian rivalry, weak borderlands infrastructures and ethnic insurgencies have emerged as the major obstacles to border trade along the Moreh-Tamu border region. This study concludes that India and Myanmar are increasingly engaged in cross-border trade and economic cooperation.