Presentation at Brainstorming Session on India-Myanmar Strategic Partnership, Organised by RIS, 4 February 2013

Road to and from Myanmar to India

Part II New Delhi, RIS 4th February, 2013

NE India & Myanmar A Win-Win Situation

Limited financials Environment degradation Political influence of corporate Imbalance in supply & demand

Regional stability Skill development Cultural development

Regional stability Increase domestic knowledge Create new skilled jobs

Hyperinflation a key challenge

So cia l

Increase employment Increase wage Access trade with ASEAN

Boost economy Trade hub for China & India Attract foreign investment

cia So l

Skills

Technology
on om y

Trade Agriculture

y om on Ec

Secure 1,600 km shared border Eliminate terrorism

Cross border infrastructure

Control outmigration Remove cross border tension

Ec

Ec

olo g

g olo

Ec

Environment and Food Security

India (NE)

Opportunities

Myanmar

Across Economic, Ecology and Social

Infrastructure Initiatives

Economic

Ecology

Virtuous Cycle
Cl im a In te iti Ch at iv ang es e

y log no es ch tiv Te itia In

Social

India & Myanmar Strategic Position

Share 1,600 km border and similar culture Close influence with NER and at juncture of mutual benefit Strategic
Look East Forging close economic and commercial ties Increase security cooperation Emphasis historic, cultural and ideological links

Political
Close political engagement since 2001 Various MoU signed concerning security, science & technology, energy Shown mutual support to each other Treaty of Friendship since 1951

Foreign Investments
$ 189 million as investment in projects Over $ 80 million spent to support troubled Myanmar since 2007

Commercial
India trade with Myanmar crossed $ 1.8 billion in 2012 Target to cross $ 3 billion by 2014

India is at 13th place. China leading with investment of $ 9+ billion

China & Thailand currently at $ 3+ billion

India & Myanmar Activity at a Glance

Projects Ongoing / Completed
Transportation Projects Tamu-Kalewa-Kalemyo Road Rhi-Tiddim Road Kaladan Multimodal Transport Project Trilateral Highway (TH) connecting India, Myanmar and Thailand. extending TH to connect Cambodia and Vietnam India Myanmar Lao PDR Cambodia - Vietnam Highway Delhi Ha Noi Railway Link Industrial Projects TCIL: ADSL for high speed data link OVL, GAIL and ESSAR: Engaged in the energy sector MoEP-1, NHPC: Tamanthi and Shwezaye Hydro-Electric Power project TATA Motors: A heavy turbo-truck assembly plant RITES: Rail transportation system Capacity Development Projects Industrial Training Centre Centre for English Language Entrepreneurship Development Centre Centre for Enhancement of IT Skills Other Projects Erection of disaster proof rice silos. Upgradation of the Yangon Childrens Hospital and Sittwe General Hospital

Challenges
Political Support Needed Laws, rules and regulations in Myanmar needs to support international trade.

Infrastructure Improvement Border infrastructure lack facilities and are insecure Illegal cross border trade

Banking Challenges The banking and financial sectors are poorly developed Volatile exchange rate of Myanmar currency

Infrastructure Projects Major Initiatives

Layout of Indias Major Connectivity Projects with ASEAN

Infrastructure Project Friendship Road

Tamu-Kalewa-Kalemyo 160 km road

The only road connecting India with Myanmar, also known as friendship road From Kalemyo, there is road connectivity to Mandalay, the second largest town in Myanmar

Friendship Road Amplifying Status Quo

Proposal
Vision Vision to become the biggest transit point between India and ASEAN Global Benchmark Create the Best Global Benchmark in EcoWayside Amenities
Basic Fuel station Parking place Banking Resting Hotels Toilets Restaurants Relief Accident relief centre Security centre Information centre Special Rural Tourism Souvenir shop Internet Zone

Benefits
Economic Smooth border trade and gain comparative advantage Formation of micro economy for managing wayside facilities Augment trade in high value products.

Ecology Eco Friendly practices giving benefit across the spectrum of LEWWAC: Land Energy Water Waste Air Carbon

Social Reduction in Insurgency

Transit duty free land port (widen the current list)

Infrastructure Project India-Myanmar-Thailand Triangle

Moreh-Bagan-Moe triangle Trilateral Highway from Moreh in India to Moe Sot in Thailand through Bagan in Myanmar with total length of 1,360 km

Trilateral Highway Balance Export vs Import Traffic

Proposal
Promote Export Traffic Establish branches of Indian & Myanmar banks in the border area Frame strategic industrial and economic policies for NE Develop NE as the most modern textile hub (Handlooms, handicrafts) Promote Import Traffic Setup IT based security services on the highway Stabilize exchange rates Security improvement across the border

Benefits
Economic Stability in trade balance & market prices Economic growth Control over illegal taxation and trades

Ecology Spreading environmental friendly practices and habits across the regions through Tribal way of living

Social Cultural & literacy development Skill development through promoting technology and industry

Infrastructure Project KMTTP

Kaladan Multimodal Transit Transport Project (KMTTP)

KMTTP Boost Trade

Proposal
Overcome project challenges Increase support and funding to take the project to completion. Target for early completion

Benefits
Economic NE to gain sea access to ASEAN zone Facilitate bulk trade via Sittwe port Opening up contiguous markets Opening up trade with Bangladesh Ecology Distance travelled by trader is reduced by half Cheap & Environment friendly transport Social Improve quality of life

Eco-friendly implementation Environment conservation Water conservation Waste management practices

Strengthen old ties Gain access to Bangladesh port

Information Communication Technology (ICT) Initiatives

ICT identified as rapidly growing industry

Proposal
Improve Landscape Telecommunication Internet Access

Benefits
Improve Landscape Cheaper access to communication Improve efficiency, attract business growth Capacity Building Attract higher recognition globally Wider opportunities and better wages Increase Governance Create confidence, trust, reliability and acceptance for e-commerce Improve defence, security and disaster management systems Impacting Lives Improve productivity, render better service to public, improve efficiency, reduce cost

Capacity Building With a suitable partner (IIIT-Bangalore) setup universities in Myanmar

Increase Governance ICT across Service, Security and Law

Impacting Lives ICT across Banking, Manufacturing, Healthcare, Management, Tax Management

Aviation, Disaster

Climate Change Initiatives

Key Policies
Nationwide Solar Strategy Vision: Eco-Friendly Myanmar

Specific Targets
Increase usage of solar energy in urban areas Solar Thermal based power generation plant Rainwater conservation Efficient irrigation Clean water policy Waste water management Promote energy efficiency and conservation Promote tribal way of living Encourage Eco-Cities and Eco-Tourism Promote organic agriculture activities Target to sell agricultural carbon sequestration credits Develop climate resilient crop Target to conserve & expand green cover and become the carbon sink Encourage energy efficiency projects Plan and fund climate science research firm in joint collaborations with leaders in Industry

Nationwide Water Conservation

Nationwide Sustainable Lifestyle

Nationwide Sustainable Agriculture

Across Economic, Ecology and Social

NER Direct Beneficiaries Arunachal Pradesh, Nagaland, Manipur, Mizoram, Assam

Infrastructure Initiatives
KMTTP & Similar Infrastructure Projects Eco-Wayside Amenities Promote Rural / Tribal Tourism

Economic
Ind o Tra -ASE de A Zo N ne

Prosperity, Peace & Security

s ros ac fit AC* ne Be EWW L
At tr inv act es fore tm ig en n t

Ecology

Improve ICT Landscape E-Governance Capacity Building

Virtuous Cycle

Climate Change Policies Sustainable Agriculture Cross Border Handicraft

Social

Cl im In ate iti C a t ha iv n es ge

t s n ill me Sk lop ve De

High Employment

gy lo no es ch tiv Te itia In

Roadmap and Next Steps..