BIMSTEC ( Bay of Bengal Initiative for Multi-sectoral Technical and Economic Cooperation ) UPSC

Bay of Bengal Initiative for Multi-sectoral Technical and Economic Cooperation (BIMSTEC)

About BIMSTEC

• BIMSTEC was established in 1997 as BIST-EC with four countries: Bangladesh, India, Sri Lanka and Thailand.

• It was named BIMSTEC in 2004 after Myanmar (1997), Nepal (2004) and Bhutan (2004) joined it.

• 1st Summit meeting was held in Bangkok in 2004.

• Its Secretariat is located in Dhaka, Bangladesh.

• BIMSTEC region is home to around 1.5 billion people which make up for around 22% of the world’s population. The region has a combined gross domestic product (GDP) of $2.8 trillion.

• Founding principles: cooperation within BIMSTEC will be based on respect for the principle of sovereign equality, territorial integrity, political independence, non-interference in internal affairs, peaceful co-existence and mutual benefit.

• Areas of Cooperation: BIMSTEC has identified 14 priority areas where a member country takes lead.

• India is lead country for Transport & Communication, Tourism, Environment & Disaster Management and Counter Terrorism & Transnational Crime.
• The charter recategorizes the cooperation in 14 fields to 7 sectors:

- Trade, Investment & Development,

- Environment and Climate Change,

- Security,

- Agriculture and Food Security,

- People-to-People Contact,

- Science, technology & Innovation,

- Connectivity.

Significance of BIMSTEC for India

Economic significance of BIMSTEC : 

BIMSTEC is fast becoming a significant trade bloc in Asia-Pacific. Its intra-regional trade is significantly higher than many other economic groupings in Asia-Pacific region except perhaps EAEG (East Asia Economic Grouping) and ASEAN (Association of South East Asian Nations).

• Bay of Bengal is the route for about 25 per cent of global trade and has huge untapped natural resources such as natural gas. 

BIMSTEC can Accelerate integration of South Asia: 

With SAARC proving to be a “dysfunctional” grouping due to the bilateral dispute between India and Pakistan, BIMSTEC as a subregional grouping of South Asia provides an opportunity for India to integrate South Asia without Pakistan.

• South Asia is one of the most densely populated but poorly integrated regions in the world. Its intra-regional trade is less than 5% of the total trade of South Asian countries. 

BIMSTEC can help in Connecting South Asia and Southeast Asia: 

BIMSTEC is a bridge between South Asia and Southeast Asia. Leveraging BIMSTEC, India focus on connectivity projects in and around the Bay of Bengal region. 

• India has already invested in the India-Myanmar-Thailand Trilateral Highway, the Kaladan Multimodal Transit Transport Project and the BIMSTEC Motor Vehicle Agreement.
• Physical connectivity with BIMSTEC would also help India integrate itself with ASEAN’s Master Plan of Connectivity 2025.
• All the members (except Sri Lanka) are connected by land, providing a stronger potential for greater connectivity among them. 

BIMSTEC can help in Development of North eastern region: 

A successful BIMSTEC Free Trade Agreement (FTA) can be instrumental in developing India’s North Eastern region as a commercial and business hub for Southeast Asia. 

• The two Southeast Asian countries in the grouping, Myanmar and Thailand, have a crucial place for India’s ambitious connectivity plans for northeastern region. 
• Sittwe port in Myanmar is closer to the northeast region than Kolkata. 

• To counter Chinese influence: China’s influence and presence in India’s neighbourhood has grown enormously through its Belt and Road Initiatives. India, through its economic engagement with Bay of Bengal littoral states will restrict Chinese influence in these countries.

BIMSTEC is also important for Energy security: 

BIMSTEC region has huge untapped reserve of natural gas, the future of power supply. 

• India, along with other BIMSTEC countries, is exploring energy opportunities at the Rakhine coast of Myanmar in the northern part of the Bay of Bengal.