BW Communities

Moving With Myanmar

BW Online Bureau Nov 08, 2014

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[There is a new democracy in the neighbourhood. Myanmar's inspirational leader Aung San Suu Kyi is readying to enter Parliament after two decades of struggling for democracy. The immediate impact of this development has been the focus on bringing its economy back on track. Myanmar is among the least developed economies in the world. Its important now for Indian companies to participate in and boost the economic reconstruction of Myanmar. In 1997, Myanmar became a member of ASEAN. And it is the only member of ASEAN that shares a land border with India. Myanmar could be a critical bridge between India and ASEAN. Prime Minister Manmohan Singh is scheduled to visit Myanmar next month to emphasise its importance for India. The immediate impact of the easing of political restrictions has been the lifting of economic sanctions by the US and EU countries. Soon ban on travel and investing in Myanmar will lift, bringing in dozens of MNCs keen to invest. Myanmar contains deposits of gold, copper and gemstones. The nation is positioned between India and China, right in the middle of maritime routes between Europe and East Asia. So India has an advantage. Also, because India never really stopped doing business with Myanmar, Government-owned and private companies are involved in more than dozen projects in Myanmar. These include ONGC Videsh, RITES, NHPC, GAIL, and Essar. Infrastructure needs like roads and telecom can be fulfilled by Indian companies. TCIL has recently completed a project under which 32 towns are now connected with high speed data links. The petroleum sector offers a great potential for India and so does hydro power generation. The pharma industry is keen on Myanmar too and held an exhibition in Yangon last year. It could even be a great market for automotive industry. In fact, Tata Motors set up a heavy truck assembly unit in Myammar in 2010 after a $20-million line of credit given by Government of India to Government of Myanmar. Tata Motors set up the factory that has a capacity to make 1,000 trucks every year. Tata Motors supplies the kits that are assembled in the company called Myanmar Automobile and Diesel Engine Industries that is owned the Ministry of Industry of Myanmar. The trucks are sold with Tata branding. Tata Motors hopes to expand its presence in Myanmar in the coming months with passenger vehicles to build on its brand presence. Bilateral trade has more than doubled in seven years to about $1 billion in 2011-12. India and Myanmar signed a border trade agreement in 1994 and have two operational border trade points (Moreh-Tamu and Zowkhatar –Rhi on the 1664 km long border. Agreement has also been reached on setting up a third border trade point at Avakhung-Pansat/Somra. The trade with Myanmar will be a win-win since it will also boost the economies of India's north eastern states. Myanmar has recently rebuffed Chinese attempts to increase its influence. In November, Myanmar halted the $3.6-billion dam project at Myitsone, the biggest of seven planned by China Power Investment on account of environmental and seismic impact. This is a strong sign of Myanmar's independent thinking. India should not take Myanmar for granted either. Myanmar does not feel as threatened by India as it does by China. India has had trade links with Myanmar from the mid-19th century. Even now, more than 5 lakh people of Indian origin live in Myanmar. In 1960, when she was just 15, Aung San Suu Kyi came to India with her mother Daw Khin Kyi, who had been appointed Burma's ambassador to Delhi. Hopefully she will return to India soon, to reinforce the two countries decades old economic and cultural relationship. (Pranjal Sharma is a senior business writer. He can be contacted at pranjalx@gmail.com)