NEW
DELHI: It is no coincidence that an
Indian prime minister, in the form of the venerable Manmohan Singh,
is finally setting foot in Myanmar at a
time when the economic significance of the only ASEAN nation to
share border with India has grown manifold in the region.
With
proven 2.54 trillion cubic metres of gas reserves (on par with Malaysia and Indonesia) and
largest copper mines in Asia, it has emerged as a major source of gas and raw
materials for its neighbours, says a report prepared by India's Exim Bank ahead
of Singh's visit.
As the first PM to visit Myanmar in 25 years, Singh, however, will have his hands full when he takes up issues related to trade and energy with President Then Sein as New Delhi continues to lag behind not just China but several other countries in its economic activities with the reformist Myanmar. Exim Bank, which seeks to boost cross-border trade, has recommended in its latest research-analysis on Myanmar opening of road-rail-sea routes to the country because there is not enough infrastructure for border trade.
While India accounts for 13.1% of Myanmar's exports, its share in Myanmar's imports is at 3%. China, on the other hand, accounts for the largest share of Myanmar's imports at 38.7%. India's trade deficit with Myanmar stood at $520 million in 2010.
Singh's visit is likely to come as a shot in the arm for Indian companies who will compete with their Chinese counterparts when auctioning for more onshore and offshore gas blocks are held but Indian officials are also hoping it will also provide a much needed impetus to India's infrastructure projects, including the Kaladan multimodal transport project. The project is important also for India because it will allow it access to the northeast through the port it is constructing in Myanmar's Sittwe, reducing its dependency on the Siliguri corridor or what is known as the chicken's neck.
Foreign secretary Ranjan Mathai admitted on Friday that the project, mainly the road component which will lead to Mizoram, is facing logistical and infrastructural challenges. In contrast, despite the reverses it suffered after Myanmar government stopped work on the controversial Myitsone dam, China continues to maintain an overwhelming lead in the infrastructure sector too.
As the first PM to visit Myanmar in 25 years, Singh, however, will have his hands full when he takes up issues related to trade and energy with President Then Sein as New Delhi continues to lag behind not just China but several other countries in its economic activities with the reformist Myanmar. Exim Bank, which seeks to boost cross-border trade, has recommended in its latest research-analysis on Myanmar opening of road-rail-sea routes to the country because there is not enough infrastructure for border trade.
While India accounts for 13.1% of Myanmar's exports, its share in Myanmar's imports is at 3%. China, on the other hand, accounts for the largest share of Myanmar's imports at 38.7%. India's trade deficit with Myanmar stood at $520 million in 2010.
Singh's visit is likely to come as a shot in the arm for Indian companies who will compete with their Chinese counterparts when auctioning for more onshore and offshore gas blocks are held but Indian officials are also hoping it will also provide a much needed impetus to India's infrastructure projects, including the Kaladan multimodal transport project. The project is important also for India because it will allow it access to the northeast through the port it is constructing in Myanmar's Sittwe, reducing its dependency on the Siliguri corridor or what is known as the chicken's neck.
Foreign secretary Ranjan Mathai admitted on Friday that the project, mainly the road component which will lead to Mizoram, is facing logistical and infrastructural challenges. In contrast, despite the reverses it suffered after Myanmar government stopped work on the controversial Myitsone dam, China continues to maintain an overwhelming lead in the infrastructure sector too.
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