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    India-Myanmar Border Trade

    Taneja, Nisha; Naing, Tin Htoo; Joshi, Sanjana; Singh, Thiyam Bharat; Bimal, Samridhi; Garg, Sakshi; Roy, Riya; Sharma, Manali | June 2019
    Abstract
    As India seeks to strengthen trade, investment and other forms of economic cooperation with ASEAN, Myanmar is an essential strategic partner, since it is the only ASEAN nation with which India shares both land and maritime borders. As a ‘gateway’ to South East Asia, Myanmar is also vital in terms of economic development for India’s North East Region (NER). India shares a 1643 km long border in four north-eastern states – Arunachal Pradesh, Nagaland, Manipur, and Mizoram - with Myanmar and this geographical proximity provides opportunity for the hitherto economically isolated northeast states of India to link to economic opportunities and markets in the east, building on their strong historical socio-cultural and economic linkages with Myanmar. To this end, India’s Act East Policy is increasingly being projected as the new economic development strategy for India's NER envisaging deeper economic integration of the region with South East Asia. Notwithstanding the advantages, for long, India-Myanmar border trade has been quite low primarily due to a restrictive border-trade policy framework wherein trade was permitted only in a limited number of locally produced items through barter. In December 2015 two important policy changes were introduced by India – shift from “Barter Trade to Normal Trade” and shift from “Border Trade to Normal Trade”. This study examines the effectiveness of the new trade policy measures adopted by India with regard to bilateral trade with Myanmar across the land border and highlights the challenges faced by traders in shifting to normal trade. The key finding of the study is that there has been a substantial increase in informal trade and formal bilateral trade between India and Myanmar has become almost negligible in the last two years. The paper concludes with policy recommendations to address the impediments to formal trade across the land border with Myanmar and suggests measures that could facilitate the formalization of the rampant informal trade.
    Citation
    Taneja, Nisha; Naing, Tin Htoo; Joshi, Sanjana; Singh, Thiyam Bharat; Bimal, Samridhi; Garg, Sakshi; Roy, Riya; Sharma, Manali. 2019. India-Myanmar Border Trade. © Indian Council for Research on International Economic Relations. http://hdl.handle.net/11540/10460.
    Keywords
    Free Trade
    Trade Facilitation
    Trade
    Economic integration
    Regional Economic Integration
    Intraregional Trade
    Macroeconomic
    Macroeconomic Analysis
    Macroeconomic Framework
    Macroeconomic Models
    Macroeconomic Performance
    Macroeconomic Planning
    Macroeconomic Policies
    Macroeconomic Reform
    Macroeconomic Stabilization
    Economic planning
    Economic structure
    Growth policy
    Trade relations
    Trade policy
    Economic development
    Economies in transition
    International economy
    Border integration
    Economic integration
    Gross domestic product
    Trade Regulations
    Exchange Rate
    Economic zones
    Regional economics
    Economic forecasting
    Economic development projects
    Success in business
    Business
    Free trade
    Business
    Economics
    Communication in economic development
    Restraint of trade
    International economic integration
    Trade blocs
    East-West
    Exchange rates
    Economic Zones
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    Citable URI
    http://hdl.handle.net/11540/10460
    Metadata
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    Working_Paper_378.pdf (1.654Mb)
    Author
    Taneja, Nisha
    Naing, Tin Htoo
    Joshi, Sanjana
    Singh, Thiyam Bharat
    Bimal, Samridhi
    Garg, Sakshi
    Roy, Riya
    Sharma, Manali
    Theme
    Trade
    Economics
     
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise