Road to and from Myanmar to India

New Delhi, RIS

4th February, 2013

Part II

Presentation at Brainstorming Session on India-Myanmar Strategic Partnership,

Organised by RIS, 4 February 2013

NE India & Myanmar – A Win-Win Situation

Environment and Food Security

Agriculture

Cross border infrastructure

Skills

India (NE) Myanmar

• Secure 1,600 km shared border• Eliminate terrorism

• Control outmigration• Remove cross border tension

• Increase employment• Increase wage• Access trade with ASEAN

• Boost economy• Trade hub for China & India• Attract foreign investment

• Regional stability• Skill development• Cultural development

• Regional stability• Increase domestic knowledge• Create new skilled jobs

Hyperinflation a key challenge

• Limited financials• Environment degradation• Political influence of corporate• Imbalance in supply & demand

Opportunities

Trade

Ecol

ogy

Econ

omy

Soci

al

Economy

Social

Ecology

Technology

Across Economic, Ecology and Social

Economic Ecology

Social

Infrastructure Initiatives

Climate

Cha

nge

Initia

tives

Technology

Initiatives

Virtuous Cycle

India & Myanmar – Strategic Position

China & Thailand currently at $ 3+ billion

“Look East”

•Forging close economic and commercial ties•Increase security cooperation•Emphasis historic, cultural and ideological links

• Close political engagement since 2001• Various MoU signed concerning

security, science & technology, energy• Shown mutual support to each other• Treaty of Friendship since 1951

• India trade with Myanmar crossed $ 1.8 billion in 2012

• Target to cross $ 3 billion by 2014

• $ 189 million as investment in projects• Over $ 80 million spent to support

troubled Myanmar since 2007

Strategic Political

CommercialForeign Investments

India is at 13th place. China leading with investment of $ 9+ billion

Share 1,600 km border and similar culture

Close influence with NER and at juncture of mutual benefit

India & Myanmar – Activity at a Glance

ChallengesProjects – Ongoing / Completed

Political Support Needed

•Laws, rules and regulations in Myanmar needs to support international trade.

Infrastructure Improvement

•Border infrastructure lack facilities and are insecure

•Illegal cross border trade

Banking Challenges

•The banking and financial sectors are poorly developed

•Volatile exchange rate of Myanmar currency

Transportation Projects•Tamu-Kalewa-Kalemyo Road•Rhi-Tiddim Road•Kaladan Multimodal Transport Project•Trilateral Highway (TH) connecting India, Myanmar and Thailand.•extending TH to connect Cambodia and Vietnam •India – Myanmar – Lao PDR – Cambodia - Vietnam Highway•Delhi – Ha Noi Railway Link

Industrial Projects•TCIL: ADSL for high speed data link•OVL, GAIL and ESSAR: Engaged in the energy sector•MoEP-1, NHPC: Tamanthi and Shwezaye Hydro-Electric Power project•TATA Motors: A heavy turbo-truck assembly plant•RITES: Rail transportation system

Capacity Development Projects•Industrial Training Centre•Centre for English Language Entrepreneurship Development Centre •Centre for Enhancement of IT Skills

Other Projects•Erection of disaster proof rice silos.•Upgradation of the Yangon Children’s Hospital and Sittwe General Hospital

Infrastructure Projects – Major Initiatives

Layout of India’s Major Connectivity Projects with ASEAN

Infrastructure Project – Friendship Road

• The only road connecting India with Myanmar, also known as friendship road

• From Kalemyo, there is road connectivity to Mandalay, the second largest town in Myanmar

Tamu-Kalewa-Kalemyo – 160 km road

Friendship Road – Amplifying Status Quo

Vision•Vision to become the biggest transit pointbetween India and ASEAN

Global Benchmark•Create the Best Global Benchmark in Eco-Wayside Amenities

•Transit duty free land port (widen the current list)

Proposal Benefits

Economic•Smooth border trade and gain comparative advantage•Formation of micro economy for managing wayside facilities•Augment trade in high value products.

Ecology•Eco – Friendly practices giving benefit across the spectrum of LEWWAC:

Land Energy Water Waste Air Carbon

Social•Reduction in Insurgency

Basic Resting Relief Special

Fuel station Hotels Accident relief centre

Rural Tourism

Parking place

Toilets Security centre

Souvenir shop

Banking Restaurants Information centre

Internet Zone

Infrastructure Project – India-Myanmar-Thailand Triangle

Trilateral Highway from Moreh in India to Moe Sot in Thailand through Bagan in Myanmar with total length of 1,360 km

Moreh-Bagan-Moe triangle

Trilateral Highway – Balance Export vs Import Traffic

Promote Export Traffic•Establish branches of Indian & Myanmar banks in the border area

•Frame strategic industrial and economic policies for NE

•Develop NE as the most modern textile hub (Handlooms, handicrafts)

Promote Import Traffic•Setup IT based security services on the highway

•Stabilize exchange rates

•Security improvement across the border

Proposal Benefits

Economic•Stability in trade balance & market prices•Economic growth•Control over illegal taxation and trades

Ecology•Spreading environmental friendly practices and habits across the regions through Tribal way of living

Social•Cultural & literacy development•Skill development through promoting technology and industry

Infrastructure Project – KMTTP

Kaladan Multimodal Transit Transport Project (KMTTP)

KMTTP – Boost Trade

Overcome project challenges•Increase support and funding to take the project to completion.

•Target for early completion

Eco-friendly implementation•Environment conservation•Water conservation•Waste management practices

Strengthen old ties•Gain access to Bangladesh port

Proposal Benefits

Economic•NE to gain sea access to ASEAN zone•Facilitate bulk trade via Sittwe port•Opening up contiguous markets•Opening up trade with Bangladesh

Ecology•Distance travelled by trader is reduced by half•Cheap & Environment friendly transport

Social•Improve quality of life

Information Communication Technology (ICT) Initiatives

Improve Landscape•Telecommunication•Internet Access

Capacity Building•With a suitable partner (IIIT-Bangalore) setup universities in Myanmar

Increase Governance•ICT across Service, Security and Law

Impacting Lives•ICT across Banking, Aviation, Manufacturing, Healthcare, Disaster Management, Tax Management

Proposal Benefits

Improve Landscape•Cheaper access to communication•Improve efficiency, attract business growth

Capacity Building•Attract higher recognition globally•Wider opportunities and better wages

Increase Governance•Create confidence, trust, reliability and acceptance for e-commerce•Improve defence, security and disaster management systems

Impacting Lives•Improve productivity, render better service to public, improve efficiency, reduce cost

ICT identified as rapidly growing industry

Climate Change Initiatives

Key Policies Specific Targets

Nationwide Solar Strategy • Increase usage of solar energy in urban areas• Solar – Thermal based power generation plant

Nationwide Water Conservation

• Rainwater conservation• Efficient irrigation• Clean water policy• Waste water management

Nationwide Sustainable Lifestyle• Promote energy efficiency and conservation• Promote tribal way of living• Encourage Eco-Cities and Eco-Tourism

Nationwide Sustainable Agriculture

• Promote organic agriculture activities• Target to sell agricultural carbon sequestration

credits• Develop climate resilient crop

Vision: Eco-Friendly Myanmar

• Target to conserve & expand green cover and become the carbon sink

• Encourage energy efficiency projects• Plan and fund climate science research firm in

joint collaborations with leaders in Industry

Across Economic, Ecology and Social

Economic Ecology

Social

Infrastructure Initiatives

Climate

Cha

nge

Initia

tives

Technology

Initiatives

Virtuous Cycle

High Employment

Skills

Development

Indo

-ASE

ANTr

ade

Zone

Prosperity, Peace & Security Benefit across

LEWW

AC*

Attra

ct fo

reig

n

inve

stm

ent• Improve ICT Landscape

• E-Governance• Capacity Building

• Climate Change Policies• Sustainable Agriculture• Cross Border Handicraft

• KMTTP & Similar Infrastructure Projects• Eco-Wayside Amenities• Promote Rural / Tribal Tourism

NER Direct Beneficiaries•Arunachal Pradesh, Nagaland, Manipur, Mizoram, Assam

Roadmap and Next Steps…..