India, Myanmar deepen ties in infrastructure, energy

India and Myanmar are deepening their economic ties as part of a regional initiative encompassing seven Southeast and South Asian countries, creating an alliance that could serve as a counterweight to China's influence in the country.

Leaders from the 7 countries gathered in the Myanmar capital, pledging cooperation on 14 fronts, including distribution infrastructure, energy, trade, anti-poverty measures and disaster management. Known as the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation, the group includes Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan and Nepal.

The group will set up a permanent office in Dhaka, Bangladesh, and draft trade rules with an eye toward a future free trade zone. They also plan to hold ministerial-level talks on energy and other areas and build a framework for financial cooperation to fund infrastructure investments.

A major bottleneck hampering regional economic development is the lack of roadways across the mountainous terrain separating India and Myanmar, the main nodes linking southern and Southeast Asia.

At the meeting, Indian External Affairs Minister Salman Khurshid said that roadways for efficient intraregional transportation are the top priority. India drew up a plan in 2002 to build a 3,000km network of roads connecting northeast India with Bangkok via Myanmar. A leading Indian construction company is also developing a large port in Myanmar.

New Delhi hopes to use the initiative to further advance projects involving distribution networks. Improved access will facilitate trade in northeast India and provide a springboard for its manufacturing sector.