Executive Summary of Monthly Economic Development & Outlook Discussions
Tuesday, November 6th, 2018
As a continuation of the “Update: Trade & Investment” segment into our monthly Discussions we were provided with another important trade dimension and potential investment perspectives during this November discussion.
Additionally, there was a brief presentation on the “Investor grievances, economic impacts and potential solutions” by a multilateral agency operating in Myanmar.
A brief overview of all the subject matters discussed.
Update: “India’s Trade & Investment into Myanmar”
With the expressed permission of disclosure granted by the First Secretary at the Embassy of the India, we reproduce some of the salient points discussed:
- Myanmar is a valuable partner for India. The bilateral trade has been holding at a uniformed annual level of approximately US $2 billion (with a decline in the last Fiscal Year due to decline in import of pulses by India and sugar by Myanmar). India however remains optimistic on the potential for these trade figures to grow.
- The Government of India is working to strengthen business and economic relationship also by working with the Government of Myanmar in infrastructure building, especially in areas closer to India. Major infrastructure projects include Kaladan multi-modal transit transport project, construction of Rih-Tidem road in Chin State in Myanmar and construction of 69 bridges and a section of road from Kalewa to Yargyi on the trilateral India-Myanmar-Thailand highway. These projects aims to develop the less developed regions of Myanmar and connect India’s North Eastern Region with western part of Myanmar. People across this region share close cultural and economic ties and have traditionally maintained trading relationships across the border.
- In order to boost trade across the land border, India and Myanmar signed the Land Border Crossing Agreement in May 2018 that allows movement of people with passports and valid visa from the land border at Moreh (India) – Tamu (Myanmar) and Zawkhawthar (India) – Rih (Myanmar). The two Governments are engaged in discussions for the conclusion of a motor vehicles agreement that shall permit movement of vehicles across the border.
- Myanmar holds prime position in India’s Act East and Neighborhood First policies.
- India is currently the 11th largest investor in Myanmar with an investment of $750 million. The Embassy of India is encouraging Indian investors to look at Myanmar as an investment destination. Though Myanmar has taken several steps in the recent past in this direction, a clarity in regulatory framework and more investor-friendly climate is desirable to facilitate larger amounts of sustained FDI’s to attract Indian corporates.
In conclusion an extremely encouraging forward looking message on both the prospects of expanded trade in the agricultural sector and an incentive for increased FDI’s from Myanmar’s western neighbor.
“Investor grievances, economic impacts and potential solutions” by a multilateral agency operating in Myanmar.
The brief presentation provided by the multilateral agency is currently unavailable.
The Discussions thereafter adjourned, with the next monthly Discussion date confirmed for Tuesday, December 04th 2018.