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    India’s Act East Policy: Facilitating India-Myanmar Border Trade

    Naing, Nisha Taneja Tin Htoo; Joshi, Sanjana; Singh, Thiyam Bharat; Bimal, Samridhi; Garg, Sakshi; Roy, Riya; Sharma, Manali | July 2019
    Abstract
    As India seeks to strengthen trade, investment, and other forms of economic cooperation with the Association of South East Asian Nations (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 1,643 km long border in four north-eastern states—Arunachal Pradesh, Nagaland, Manipur, and Mizoram—with Myanmar. This geographical proximity provides an opportunity for these hitherto economically isolated states and their sisters (Assam, Meghalaya, Sikkim, and Tripura) to leverage the economic opportunities and markets in the east, building on their strong historical economic and socio-cultural associations 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 in the last two years and formal bilateral trade between India and Myanmar has become almost negligible. The report 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
    Naing, Nisha Taneja Tin Htoo; Joshi, Sanjana; Singh, Thiyam Bharat; Bimal, Samridhi; Garg, Sakshi; Roy, Riya; Sharma, Manali. 2019. India’s Act East Policy: Facilitating India-Myanmar Border Trade. © Indian Council for Research on International Economic Relations. http://hdl.handle.net/11540/10853.
    Keywords
    Transport
    Transportation
    Trade
    Trade Facilitation
    Trade Potential
    Trade Development
    Trade Agreements
    Regional Trade Integration
    Regional Trade
    Finance And Trade
    Demand For Transport
    Road & Highway Transport
    Road Transportation Systems
    Transport Infrastructure
    Transport time
    Sea Transport
    Transport Costs
    Transport Efficiency
    Transport Infrastructure
    Transport Planning
    Transport Policy
    Transport Services
    Transport Systems
    Transport Tax
    Transportation
    Economic integration
    Energy
    Import volume
    Export volume
    Access to markets
    Economic agreements
    Trade financing
    Regional integration
    Vehicle
    Land transport
    Transport economics
    Railways
    Modes of transport
    Airports
    Ports
    Shipping
    Taxis
    Vehicle
    Automobile industry
    Road traffic
    Inland transport
    International transport
    Public transport
    Urban transport
    Transport projects
    Transport workers
    Transport statistics
    Transport networks
    Urban traffic
    Rural planning
    Infrastructure
    Railroads
    Roads
    Trade routes
    Markets
    Economic goods
    Economic conditions
    New agricultural enterprises
    Consumer goods
    Road transportation
    Trucking
    Trade flow
    Inland water transportation
    Intercoastal shipping
    Marine transportation
    Trade routes
    Show allCollapse
    Citable URI
    http://hdl.handle.net/11540/10853
    Metadata
    Show full item record
    Thumbnail
    India_Myanmar_Border_Trade.pdf (949.7Kb)
    Author
    Naing, Nisha Taneja Tin Htoo
    Joshi, Sanjana
    Singh, Thiyam Bharat
    Bimal, Samridhi
    Garg, Sakshi
    Roy, Riya
    Sharma, Manali
    Theme
    Transport
    Trade

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    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise