That the Myanmar President chose India as his first trip abroad in his current capacity is itself significant. During the meeting, Prime Minister Narendra Modi affirmed that India remained committed to deepening security cooperation between the two countries. Further, the Prime Minister reaffirmed India’s support for its sovereignty and territorial integrity.

India and Myanmar share a land border of 1,643 kilometres. It is often not appreciated that Myanmar lies at the confluence of India’s foreign policies: Neighbourhood First, Act East, and MAHASAGAR (Mutual and Holistic Advancement for Security and Growth Across Regions).

Major Trading Partner

India has been a major trading partner of Myanmar for ages. Bilateral trade increased from US$1.74 million in FY2023-24 to US$2.1 billion in FY2024-25. This includes India’s export of over US$614 million. The import from Myanmar stood at US$1,533 million. 

India is Myanmar's fourth-largest trading partner. Myanmar remains an important source of pulses for India.

The visit also amplified Myanmar's bid to seek Indian investments. There is a need for closer trade and investment cooperation in areas of mutual interest, such as agro-processing, petroleum, energy, and the mining sector. Myanmar is sitting on rare earths necessary to accelerate India's EV sector. As per statistics (as on March 31, 2025) from the Myanmar government, India is its 11th largest investor, with an approved investment of US$782.821 million by 39 Indian enterprises (of the total estimated investments of US$96.05 billion from 53 countries).

India’s imports from Myanmar have grown by 64%, while India’s exports to Myanmar have declined by 12% in the current financial year.

Export Of Pharmaceuticals

India primarily exports pharmaceuticals, products of animal origin, cereals, foodstuffs, animal feed, cotton, machinery, vehicles, and electrical machinery to Myanmar. Pharmaceuticals, in particular, are a significant export, and India has captured 60% of Myanmar's market. Indian-made medicines are widely used in Myanmar due to their affordability and quality. On the other hand, Myanmar exports pulses, wood products, and agricultural goods to India. Pulses such as lentils and beans are a major import for India, as they help meet the domestic demand for food staples.

Both countries have also agreed to facilitate and enhance bilateral trade, including through the Rupee-Kyat settlement mechanism. 

Enhanced connectivity between India and Myanmar would foster mutually beneficial economic linkages and shared prosperity in the region. In this regard, it is imperative for an early completion of the Kaladan Multi-Modal Transit Transport project and the India-Myanmar-Thailand (IMT) trilateral highway. Besides IMT, India’s focus should be on assisting Myanmar to build highways, enabling connectivity across South Asia and Southeast Asia.   

Myanmar’s Sittwe Port 

Myanmar’s Sittwe Port is a deep-water seaport in Rakhine State, Myanmar, built and operated by India as part of the $484 million Kaladan Multi-Modal Transit Transport Project. Its primary goal is to connect the landlocked Northeast India to the Bay of Bengal, drastically reducing shipping distances and bypassing Bangladesh. The aim is to have cargo transported from Indian ports to Sittwe Port. From there, it is transported via the Kaladan River waterway to Paletwa, and finally via road to Zorinpui in Mizoram. Once fully operational, the transit is expected to reduce cargo transportation time and costs by about 50% for India's northeastern states. It offers an alternative route to the highly congested and narrow Siliguri Corridor. Operated by India Ports Global Ltd. (IPGL), Sittwe is India’s second overseas port after Iran's Chabahar Port, serving as a critical balance to China's maritime influence in the Bay of Bengal.

The defence and security cooperation has also strengthened over the years, not to mention the high-level visits and various strategic agreements. Over the years, bilateral defence relations have included institutional and capacity-building programmes, including specialised training for Myanmar troops in United Nations peacekeeping. The two nations actively collaborated on maritime security to protect their respective coastlines and secure strategic interests in the Bay of Bengal.

Myanmar's significance lies in the fact that it is critical to maintaining stability in the Northeastern states and the Bay of Bengal. Its willingness to hedge against China cannot be overlooked. Myanmar will remain crucial to India's regional calculations.  

(The writer is a commentator on geopolitics and geoeconomics. Views expressed are personal.)