Ever since it revitalised its 'Look East’ policy to ‘Act East’ in 2014, India has been doing all it can to strengthen its bilateral ties with its eastern neighbours. Just when the stagnation of the South Asian Association for Regional Cooperation (SAARC) was limiting the scope of India’s growing economic aspirations, India began looking at the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) as a viable alternative to SAARC. 

Indian government's support to BIMSTEC

BIMSTEC has been receiving PM Narendra Modi's much-needed support from the very beginning. In his address during the 20th anniversary of BIMSTEC, PM Modi described the grouping as “a natural platform” for fulfilling India’s key foreign policy priorities of 'Neighbourhood First' and 'Act East'. BIMSTEC also experienced new momentum when India hosted the BIMSTEC members at Goa during the BRICS Outreach Summit in October 2016. What was also significant was Prime Minister's swearing-in ceremony in May 2019 when India extended an invitation to BIMSTEC leaders to attend the ceremony. This was followed by Dr. S. Jaishankar's remark which he made shortly after taking charge as Foreign Minister in June 2019. EAM Jaishankar remarked that SAARC has “issues” and concluded that India would see BIMSTEC as a priority over the next five years.

Trade Gains

The BIMSTEC region brings together 1.67 billion people and a combined GDP of around US $2.88 trillion. BIMSTEC has the capability to catapult regional trade & investment to unthinkable levels. According to FICCI's report, about 60 per cent of BIMSTEC’s combined GDP presently comes from trade. BIMSTEC countries constitute 3.8 per cent of world trade. In 2018, India’s export share in BIMSTEC stood at about 50 per cent (US$ 21 billion). FICCI report also endorses BIMSTEC as the most active trade-driven regional blocs of the world in terms of huge export and import statistics. Such a trade framework is crucial for India to expand economically.

Conquering the Manufacturing Sector

According to United Nations Statistics Division's data, there are five countries that are hopeful that they could replace China as the world’s next major manufacturing hub. These countries are Vietnam, Mexico, India, Malaysia and Singapore. Surprisingly, Apart from India, three countries here (Vietnam, Malaysia, Singapore) are members of the ASEAN grouping. India and these three ASEAN nations can together work to take Manufacturing Sector to new heights, simultaneously emerging globally as an alternative to China. BIMSTEC constitutes a unique link between South Asia and South-East Asia with five Members from South Asia (Bhutan, Sri Lanka, India, Bangladesh and Nepal) and two from South-East Asia (Myanmar and Thailand), which are also ASEAN nations. Thus, BIMSTEC is also seldom considered India's bridge to ASEAN, where it isn't seated as a permanent member.

Connectivity

India broadly divides 'connectivity' into five types i.e. trade connectivity, economic connectivity, transport connectivity, digital connectivity, and people to people connectivity. SAGAR (Security and Growth for All in the Region) aims to increase connectivity and development in the Northeastern states of India. One of the major connectivity projects is the 'Kaladan Multimodal project' which links India and Myanmar by connecting Kolkata to Sittwe port in Myanmar, and then Mizoram by river and road. Another is the Asian Trilateral Highway which will connect India and Thailand through Myanmar. The historic highway will run from Manipur to Mae Sot in Thailand via Myanmar and will be a significant step in establishing connectivity between India and Southeast Asian countries.