Myanmar and India, a friendship that defines a new geo-economic map — Strategic Culture

Let us try to understand the geopolitical and geo-economic relations of Myanmar, which will play a central role in the development of Southeast Asia in the coming years.

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Friendship and influence

Myanmar is approaching elections, which are scheduled to take place in late autumn this year, barring any unforeseen circumstances. Let us try to understand the geopolitical and geo-economic relations of this country, which will play a central role in the development of Southeast Asia in the coming years.

The first major regional player with significant influence on Myanmar is India.

Geographically, the two countries share a long land border stretching over 1,643 km: approximately 510 km between Chin State and Mizoram, 398 km between Manipur and Chin State/Sagaing Region, 215 km between Nagaland and Sagaing Region, and 520 km between Arunachal Pradesh and Sagaing Region/Kachin State.

India and Myanmar have a common background of religious, linguistic, and ethnic ties. Furthermore, Myanmar is the only ASEAN member with a border with India, thus representing New Delhi’s gateway to Southeast Asia. India seeks to strengthen cooperation with Nay Pyi Taw in line with its “Act East” and “Neighborhood First” strategies.

The two countries have established numerous cooperation mechanisms to maintain regular consultations between their governments, with meetings aimed at strengthening foreign relations and cooperation on strategic development.

The joint work between the armed forces on counterinsurgency is fundamental, with numerous memoranda signed in recent years, also strengthening long-term strategic projects and bilateral understanding. This has an extension in the geo-economic sphere: ASEAN first and BRICS later represent the heart of the expansion of relations between the two countries.

The President of India visited Myanmar from December 10 to 14, 2018, when two memoranda were signed, one on cooperation in science and technology and the other on judicial training. He met with then-President U Win Myint and State Counsellor Suu Kyi. Subsequently, U Win Myint traveled to New Delhi for the prime minister’s inauguration ceremony in May 2019. Modi met with Suu Kyi again on the sidelines of the 16th ASEAN-India Summit in Bangkok on November 3, 2019. In January 2020, the Indian Deputy National Security Advisor visited Myanmar, followed by the state visit of President U Win Myint and First Lady Daw Cho Cho to India (February 27-29, 2020), during which 10 agreements were signed in the areas of rapid development projects, cooperation in Rakhine State, combating human trafficking, energy, telecommunications, and health research.

Among the most recent meetings were visits to New Delhi by the Burmese ministers of agriculture and justice (September 2022) and trade (October 2022), as well as the Indian foreign minister’s trip to Myanmar in November 2022.

India exports mainly pharmaceuticals, animal products, cereals, food, feed, cotton, vehicles, machinery, and electrical equipment to Myanmar. Among these, pharmaceuticals play a key role, with a 60% market share thanks to their good value for money. For its part, Myanmar sends legumes, agricultural products, and timber to India, which help meet domestic demand for primary goods.

According to official Burmese government data, India currently ranks eleventh among foreign investors, with a total approved investment of $782.821 million, distributed among 39 Indian companies, out of a total estimated amount of $96.05 billion from 53 countries (as of March 31, 2025). The State Bank of India (SBI) received a commercial banking license from Myanmar in March 2016, while the Punjab National Bank (formerly United Bank of India) has a representative office in Yangon, where it has started operations.

To facilitate bilateral trade and ensure smoother transactions, a rupee-kyat settlement system came into effect on January 25, 2024. This allows trade between the two countries to be conducted directly in INR, with PNB as the reference bank for the Indian side. So far, nine Burmese banks have opened special rupee accounts (SRVAs) to handle payments.

Defense and strategic cooperation

In terms of defense, cooperation has strengthened over time through exchanges of visits, agreements on border management, training programs, and direct contacts between army, navy, and air force leaders. In 2019, Indian Defense Secretary Sanjay Mitra visited Myanmar, followed by Myanmar’s commander-in-chief Min Aung Hlaing, who traveled to India in July. In the same year, October saw the visit of Deputy Chief of the Navy G. Ashok Kumar, while in February 2020, Admiral Karambir Singh made an official trip to Myanmar. Also in February 2020, Deputy General Soe Win participated in DefExpo in India. On June 24, 2020, Defense Minister Rajnath Singh met with Min Aung Hlaing in Moscow on the occasion of the Victory Day parade. In October 2020, Chief of Staff M. M. Naravane also traveled to Myanmar.

Since 1970, when the bilateral trade agreement was signed, trade between India and Myanmar has grown steadily. India is currently Myanmar’s fourth largest trading partner, with a trade volume of $2.1 billion in 2024-25: $614 million in Indian exports and approximately $1.533 billion in Burmese imports. This represents an increase from $1.74 billion in 2023-24. The increase is largely due to growth in Burmese exports, supported by New Delhi’s decision to allow unlimited imports of urad and tur until March 31, 2025, a measure that was later extended to 2026. In previous years, bilateral trade rose from $1.29 billion in 2020-21 to $1.89 billion in 2021-22, $1.76 billion in 2022-23, and $1.74 billion in 2023-24.

Development cooperation has long been a key pillar of India-Myanmar relations. Indian assistance ranges from the construction of major connectivity infrastructure to the establishment of long-term institutions dedicated to skills and human resource development in critical areas such as agricultural research, health, education, information technology, and vocational training. A significant portion of these projects is entirely funded by grants, although India also provides concessional loans to support interventions in transport, telecommunications, agriculture, and highways. India’s total commitment amounts to approximately $1.5 billion, of which nearly $1 billion is in grants.

The Kaladan Multimodal Transit Transport Corridor (KMTTC) is the most significant infrastructure project launched by India in Myanmar, aimed at creating a multimodal logistics corridor linking India’s eastern ports to Myanmar and, from there, to northeastern India. It includes a 158 km river section along the Kaladan River from Sittwe to Paletwa and a 109 km road link between Paletwa and Zorinpui on the Indian-Myanmar border in Mizoram State. Under bilateral agreements signed in 2018 and 2025, the port of Sittwe is operated by the Indian company India Ports Global Limited (IPGL) and has so far handled more than 185 ships. Road works are still ongoing. At the same time, the India-Myanmar-Thailand trilateral highway is another major strategic project, with India responsible for two segments through the National Highways Authority of India (NHAI).

Education and culture

In terms of training and capacity building, New Delhi has contributed to the opening of centers of excellence in IT, agriculture, healthcare, entrepreneurship, and industrial training. Among the most significant projects already completed are: the Myanmar Institute of Information Technology (MIIT) in Mandalay, the Rice Bio Park in Nay Pyi Taw, the Industrial Training Centers in Pakokku (2010), Myingyan (2013) and Thaton (2024), the modernization of the pediatric hospitals in Yangon and the general hospitals in Sittwe, and the restoration of the historic Ananda Pagoda in Bagan, a UNESCO World Heritage Site.

At the same time, as part of the Border Area Development Programme (BADP), India has launched over 170 projects to benefit border communities in Chin State and the Naga Autonomous Region, with total funding of $25 million (5 million per year for 5 years). The works carried out between 2013 and 2024 include schools, clinics, bridges, and road infrastructure. A similar program has been launched in Rakhine State (RSDP), also with Indian funding, for the construction of prefabricated houses, solar systems, water systems, and agricultural facilities.

Through the Small Development Projects (SDP), high-impact interventions have been carried out, including a 200-bed hospital for women and children in Monywa, the provision of IT equipment to the University of Sittwe, and agricultural equipment in Rakhine State.

On the humanitarian front, India has responded promptly to several natural emergencies in Myanmar. Following the earthquake on March 28, 2025 (magnitude 7.7), Operation Brahma was launched, sending 968 tons of aid via nine military aircraft and five ships. An Indian medical team treated over 2,500 patients and performed hundreds of surgeries. Already in 2024, New Delhi had provided assistance with Operation Sadbhav for the floods, delivering medicines and 2,200 tons of rice. In the past, significant aid had also been sent during Cyclone Nargis (2008), the earthquake in Shan State (2010), Cyclone Komen (2015), Mora (2017) and the 2017 flu epidemic.

Culturally, the two countries share a strong bond linked to their Buddhist heritage. Among the main initiatives are the restoration of the Ananda Temple and India’s donation of a 16-foot-tall statue of the Buddha of Sarnath to the Shwedagon Pagoda in Yangon. Regular cultural exchanges and performances have seen Burmese artists participate in Indian festivals such as Kullu Dusshera and Surajkund Mela, as well as thematic exhibitions on the Ramayana in Myanmar.

The roots of the Indian community in Myanmar date back to the British colonial era (19th century), when Yangon and Mandalay were home to large Indian communities active in administration, education, and trade. Today, the diaspora numbers around 1.5-2.5 million people, with significant concentrations in Bago, Tanintharyi, and Mon State, as well as around 3,000 non-resident Indians active in import-export and multinational companies.

Last but not least, India also plays a balancing role in relations between Myanmar and China. The recent summit in Kazan in 2024 between Narendra Modi and Xi Jinping opened up prospects for geo-economic cooperation between Beijing and New Delhi, with spillover effects for Myanmar. In addition to reducing border tensions, the meeting relaunched projects such as the China-India-Myanmar Corridor, a possible evolution of the previous BCIM plan, which could integrate India into the trade routes already established by China with Myanmar and, in the future, also with Bangladesh.

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