The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) serves as a vital regional organization connecting five South Asian and two Southeast Asian countries. With the stagnation of SAARC due to India-Pakistan tensions, BIMSTEC has emerged as a pragmatic alternative aligning with India’s Neighbourhood First, Act East, and MAHASAGAR Vision.
Significance of BIMSTEC for India:
- Regional Integration: BIMSTEC bridges South and Southeast Asia, enhancing India’s Indo-Pacific outreach.
- Economic Opportunities: The proposed BIMSTEC Free Trade Agreement (FTA) can boost regional value chains and investment.
- Connectivity Projects: India is spearheading initiatives like the India–Myanmar–Thailand Trilateral Highway and Sittwe Port under the Kaladan Multimodal Transit Project.
- Security Cooperation: Through BIMSTEC DMEx and planned Home Ministers’ meetings, India promotes joint efforts on counter-terrorism and cyber security.
- Energy & Climate: India leads regional energy integration via the BIMSTEC Energy Centre (Bengaluru) and cross-border electric grids can aid regional energy security and boosts India’s climate leadership.
Challenges Undermining India’s Leadership:
- Policy Inconsistency: India’s withdrawal (April 2025) of the transshipment facility for Bangladeshi exports led to strategic mistrust. It affected Dhaka’s reliance on Indian ports, especially during peak garment export seasons.
- Credibility Concerns: Such unilateral actions erode India’s image as a dependable regional partner and may push smaller nations towards China or ASEAN.
- FTA Delays: The prolonged non-finalisation of the BIMSTEC FTA weakens trade integration.
- Geopolitical Sensitivities: Political instability in Myanmar, Nepal, Sri Lanka, and overlapping ASEAN priorities dilute regional momentum.
- Institutional Gaps: A weak Permanent Secretariat hampers implementation and coordination on crucial regional issues like terrorism, natural disasters etc.
Way ahead:
- Clarify Transshipment Policy: India must reinstate or redefine port access for Bangladesh to restore trust.
- Accelerate Agreements: Finalise BIMSTEC FTA and fast-track infrastructure like the Kaladan project.
- Enhance Maritime Integration: Leverage the BIMSTEC Maritime Transport Cooperation Agreement (MTCA) to harmonise customs and reduce trade costs.
- Lead by Example: Initiatives like India’s BODHI programme, UPI-based digital integration, and visa relaxations can enhance India’s soft power and regional goodwill.
Conclusion: The Bay of Bengal is poised to become a dynamic trade corridor. While BIMSTEC offers India a strategic opportunity to anchor regional leadership, credibility, consistency, and cooperative diplomacy will be key. A stable, functionally integrated BIMSTEC will reinforce India’s status as a leading Indo-Pacific power.
+1 value addition:
- “BIMSTEC represents the collective vision of a connected, cooperative, and prosperous Bay of Bengal region.”
- India is BIMSTEC’s largest economy, contributing ~65% of the bloc’s GDP.
- India hosting the BIMSTEC Games (2027) and Young Leaders’ Summit as instruments of cultural diplomacy.
- At the 6th BIMSTEC Summit in Bangkok, PM Modi reaffirmed India’s commitment to regionalism by unveiling a 21-point action plan.
- India is actively involved in BIMSTEC-led initiatives like the BBIN Motor Vehicle Agreement and India-Myanmar-Thailand Trilateral highway to reduce dependency on the Siliguri Corridor.
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