• The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC)is a regional multilateral organisation.
• Its members lie in the littoral and adjacent areas of the Bay of Bengal constituting a contiguous regional unity.
• Out of the 7 members,
  • Five are from South Asia –
    • Bangladesh
    • Bhutan
    • India
    • Nepal
    • Sri Lanka
  • Two are from Southeast Asia –
    • Myanmar
    • Thailand
  • BIMSTEC not only connects South and Southeast Asia, but also the ecologies of the Great Himalayas and the Bay of Bengal.
  • It mainly aims to create an enabling environment for rapid economic development; accelerate social progress; and promote collaboration on matters of common interest in the region.

Potential of BIMSTEC

• Bridge between South and South East Asiaand represents a reinforcement of relations among these countries.
  • The Bay of Bengal region has the potential to become the epicentre of the Indo-Pacific idea, a place where the strategic interests of the major powers of East and South Asia intersect.
• Platform for intra-regional cooperation between SAARC and ASEAN
• Home to around 1.5 billion people that constitute around 22% of the global population and a combined Gross Domestic Product (GDP) of USD 3.8 trillion, BIMSTEC has emerged as an influential engine of economic growth.
• A fourth of the world’s traded goods cross the bay every year.
• Important Connectivity Projects:
  • Kaladan Multimodal Project – links India and Myanmar.
  • Asian Trilateral Highway - connecting India and Thailand through Myanmar.
  • Bangladesh-Bhutan-India-Nepal (BBIN) Motor Vehicles Agreement - for seamless flow of passenger and cargo traffic.

Significance of BIMSTEC for India

• Allows India to pursue three core policies:
  • Neighborhood First - primacy to the country’s immediate periphery;
  • Act East - connect India with Southeast Asia; and
  • Economic development of India’s northeastern states – by linking them to the Bay of Bengal region via Bangladesh and Myanmar.
• Allows India to counter China’s creeping influence in countries around the Bay of Bengal due to the spread of its Belt and Road Initiative.
• A new platform for India to engage with its neighbors with South Asian Association for Regional Cooperation (SAARC) becoming dysfunctional because of differences between India and Pakistan.

Road ahead

• Since the BIMSTEC region is notable for its diversity, the member states need to build on the regional synergies and work towards utilising the available resources in the most optimal manner.
• This would help build a stronger and a more dynamic BIMSTEC.
• Multilateral Discussions:Given the complexity of domestic and geopolitical factors, this sphere will require sustained bilateral and group-level discussions to prevent problems such as the Rohingya crisis from becoming impediments to the smooth delivery of economic and security outcomes.
  • India too will have to ensure equally sustained political engagement with partnerssuch as Nepal, Sri Lanka and Bangladesh to prevent any domestic political spillover from affecting bilateral and group-level working relationships.
  • India and other members will also need to be astute in managing Myanmar’s engagementuntil the political situation in the country becomes normal.
• Boosting Connectivity and Cooperation:For India’s vision to bolster trade connectivity in the grouping, an FTA spanning the maritime resource-rich members such as Myanmar and Sri Lanka could bring dramatic gains for all members.
  • A ‘coastal shipping ecosystem’and an interconnected electricity grid, in addition to the adopted Master Plan for Transport Connectivity, have the potential to boost intraregional trade and economic ties.
  • Also, BIMSTEC needs to generate additional funding and push for timely implementationof the projects.
• India as the Torchbearer:For the revived grouping to realise its trade and economic potential, India will have to take a leadership role in assuaging any apprehensions among the smaller members of intragroup power imbalances and strive to facilitate greater cross-border connectivity and flow of investments by lowering barriers to the movement of people and goods.
  • Even at the summit, India was theonly country to offer additional funding to the Secretariat and also to support the Secretary General’s proposal to establish an Eminent Persons Group (EPG) for producing a vision document.
  • Other countries need to emulate thissincere matching of words with action.
• Others Areas of Focus:BIMSTEC should focus more in the future on new areas such as the blue economy, the digital economy, and promotion of exchanges and links among start-ups and Micro, Small and Medium Enterprises (MSMEs).