Bilateral Relations

1. Myanmar and India share a close and cooperative relationship. The two countries are bound not only by a 1600-kilometer land frontier and a long maritime boundary but also by religious, cultural and ethnic affinities, which go back to two millenniums. Geographical proximity between the two countries translated into long-standing trade relations across the land and sea routes alike. The migration of Indians to Myanmar during the colonial era and their role in the commercial sphere contributed to commercial relations between the two colonies. Up to the 1960s, India was a major trading partner of Myanmar. However, the balance of trade was in favour of Myanmar due to large imports of rice by India.

2. As reflected in the enclosed two Tables, from US $12.4 million in 1980-81, India-Myanmar trade grew steadily in the 1990s to reach a level of US $328 million in 1997-98. In 1998-99, the value declined to US$ 235.4 million, a fall by nearly 30%, due mainly to a decline in import of beans and pulses by India. In 1999-00, the trade turnover amounted to US$ 287.6 million; in 2003-04 to US$ 470 million, in 2004-05 to US$ 425 million and in 2005-06 to 569 million respectively. The actual trade turnover may probably be more if trade via third countries, particularly Singapore, is taken into account.

3. Myanmar’s exports to India in 1999-00, 2000-01, 2001-02 were of the order of US$ 215.35 million, US$ 261.99 million and US$ 345.74 million, respectively. Myanmar’s imports from India for the same financial years were US$ 72.26 million, US$ 83.16 million and US$ 82.26 million, respectively. Since 2001-02, India has been the second largest market for Myanmar’s exports. During 2006-07, Myanmar’s exports to India were recorded at US $ 733.59 million and Myanmar's imports from India were US$ 159.95 million.

4. India's imports from Myanmar are dominated by agricultural and forest-based products. Myanmar is the second largest supplier of beans and pulses to India, next only to Australia, accounting for one third of India's total requirements of imported pulses. In 2005-06, pulses and beans accounted for 37.43% of Myanmar’s exports to India. Myanmar contributes to nearly one fifth of India’s imports of timber, second only to Malaysia. In 2005-06, timber and wood products accounted for 51% of Myanmar’s exports to India.