Blue, Mountain Economies Hold Key To Unlocking BIMSTEC's Economic Potential: Experts

The global blue economy stands at USD 1.5 trillion, and its share in India’s gross domestic product (GDP) is 4.1 per cent. On the other hand, the value of the medicinal and aromatic plants found in the mountainous region of the Bay of Bengal Initiative for Multi-sectoral Technical and Economic Cooperation (BIMSTEC) countries is somewhere close to USD 538 million. 

While speaking at the CII BIMSTEC Business Summit, Sachin Chaturvedi, Director General, Research and Information System for Developing Countries (RIS), India stated that that 82 per cent of medicinal and aromatic herbs are exported in their raw form, lacking value addition. To address this, private companies need to step up and engage in value-added processing. Adequate drying facilities are essential for enhancing the value of these herbs. 

Additionally, he echoed the sentiments of Indra Mani Pandey, Secretary General of the BIMSTEC Secretariat, who emphasised the need to revitalise the Business and Economic Forum among BIMSTEC nations. Notably, BIMSTEC enjoys unique development opportunities due to its interconnected landscapes of mountains, rivers, and sea. The Bay of Bengal, linking several member states, has served as a central hub for trade, commerce, and culture for centuries and is the gateway to the Indian Ocean for most BIMSTEC countries. 

Additionally, Nepal, Bhutan, Myanmar and India have extensive mountainous regions. Therefore, the potential of the blue economy and Mountain Economy should be optimally harnessed. The private sector can play a key role in exploring specific sectoral opportunities.

Union Minister of Commerce and Industry Piyush Goyal, who also addressed the summit and said that member states are experiencing a flourishing blue economy, driven by the increasing demand for ocean products, which enhances livelihoods and creates jobs while safeguarding marine and coastal ecosystems. He also noted that regional value chains could integrate agricultural and mineral outputs, contributing to the development of the region.

One of the speakers at the event, Aum Lily Wangchuk, Member BCCI and Founder and President, Soksoom Centre for Wellbeing and Happiness remarked, “The private sector has a pivotal role to play in harnessing the synergies between the blue and the mountain economies. By investing in innovative solutions and fostering cross-sector collaboration, businesses can drive sustainable growth and can address critical environmental and social economic challenges."  She added, “Digital platforms can facilitate the exchange of information, resources, and expertise between the coastal and mountain communities. By investing in digital infrastructure and skill development, we can bridge the geographical divide and create a connected collaborative BIMSTEC region.”

Finding synergies between the blue and mountain economies is essential for the sustainable development of the BIMSTEC region, particularly for countries like Bhutan and Nepal, where the mountain economy plays a significant role, and for Thailand, Sri Lanka, Myanmar, Bangladesh, and parts of India, where the blue economy is significant.

The region is a biodiversity hotspot, home to five major rivers, and features the Hindukush Himalaya, which provides abundant hydropower resources. Additionally, both economies can benefit from the cultivation of medicinal and aromatic plants, which thrive in these diverse ecosystems. By integrating efforts to enhance both the blue and mountain economies, these nations can create a more resilient and sustainable economic framework that leverages their unique natural resources and ecological diversity.

Thus, the complementarities between the blue and mountain economies of the BIMSTEC countries can become the basis for further social and economic progression. The physical characteristics of the natural regional integration of the countries make it easier for the economic sectors to form partnerships, such as the eco-tourism sector, which boosts economies without harming the environment. 

The management of agriculture is important today for food security and sustainability, and the link between energy economies is important today for sustainable agriculture. Experts noted that the technology can also augment these synergies by improving operation and resource use and encouraging innovation. When the strengths of all these BIMSTEC nations are properly harnessed, the member states will be provided with a stronger and more connected economic infrastructure.

Abhinav Kumar Jha

BW Reporters The author is a trainee correspondent at BW Businessworld.