India and Myanmar agreed to Step up Cooperation in Oil and Natural Gas

President of the Republic of the Union of Myanmar, HEU Thein Sein visited India from 12 to 15 October 2011. This was the first State visit of any political head from Myanmar to India following the swearing in of a new government in Myanmar in March 2011. During this visit, India and Myanmar agreed to step up cooperation in oil and natural gas with discussions touching on new gas pipelines. India also offered an additional 5oo million US dollars line of credit. India agreed to resolve border issues and step up energy and trade links.

In security, India and Myanmar agreed to increase the effectiveness of coordinated operations on either side of the border through better intelligence sharing. Both nations will jointly work out a schedule for repairing boundary pillars in a time-bound manner. India also agreed to increase training slots for Myanmar students and establish more I.T. training centres. India and Myanmar discussed the Moreh-Mae Sot road that would connect India and Thailand via Myanmar. This will open a direct road link between India and Association of South East Asian Nations (ASEAN). This direct road link will also accelerate the plans of ASEAN for the Mekong-Ganga corridor. India welcomed Myanmar's progress towards an open and democratic framework.

Why Myanmar is Important for India

The visit of Myanmar’s President takes place in a context when Myanmar is no longer a pure military regime. Following elections in November 2010, a civilian government took charge, with an elected Parliament.  Myanmar is important for India, because it is a gateway to the ASEAN, it holds the key for the successful implementation of India’s look east policy. India stood as Myanmar’s fourth largest trading partner after Thailand, Singapore and China with bilateral trade valued at 1.071 billion US dollars in the year 2010-11.

Myanmar's total export to India valued at 876.91 million US dollars, while its import from India was amounted to 194.92 million US dollars. Agricultural produce and forestry products are leading in Myanmar's export to India whereas medicine and pharmaceutical products are the major import items from India. India is a major buyer of Myanmar's beans importing 70 percent of the latter's agricultural produce.