Myanmar-India International Trade Fails to Hit Target

Myanmar and India have been working closely in an effort to expand their international trade. Needless to say, trade between the two countries failed to hit the target for 2006 to 2007. According to reports, international trade between Myanmar and India fell short of $1 billion as a result of the lack of interest among traders from the two nations.

Indo Myanmar Chamber of Commerce and Industries Chief G. L. Goenka said that the final figures concerning international trade between the two countries is yet to be released. But he also stated that trade between the two countries was expected to reach up to $650 million, thus falling short of $1 billion from the original target. The decline of trade between Myanmar and India has been blamed on the lack of interest on the part of Indians to put or increase their investments in Myanmar.

Mr. Goenka said that if Indians give up their inhibitions concerning Myanmar, international trade between the two countries would significantly grow. It must be noted that between 2004 and 2005, trade between the two nations reached up to $341.40 million. But trade between the two countries continued to improve, thus recording a value of $557.68 between 2005 and 2006. According to reports, India's exports to Myanmar is worth $80 million.

At present, India is planning to organize an exhibition for small and medium-scale businesses in a move to boost its international trade with Myanmar. The SME India 2007 is scheduled to take place on November 25 in Yangon, Myanmar. Mr. Goenka said that the exhibition would seek to encourage Indian SME to explore trade and business opportunities in Myanmar.

The exhibition is expected to generate $25 million and to improve the international trade relations between Myanmar and India. Recently, Myanmar has sought Indian investments in some sectors like cement, pharmaceutical, fertilizer, steel, food processing, and IT. Myanmar Ambassador to India Kyi Thein said that his country was willing to deepen its economic and trade relations with India. He added that Myanmar was taking the necessary measures such as improving transportation in order to boost its trade with India.

With its fast-growing economy, India continues to draw the attention of many investors, as well as partners in international trade. During the recent years, India has been focused at establishing and strengthening its economic and international trade relations with other countries. In fact, India is currently negotiating a free trade agreement with the Association of Southeast Asian Nations (ASEAN).