India and Myanmar have agreed to strengthen their economic partnership by expanding trade through the Rupee-Kyat settlement mechanism. This arrangement, operational since May 2024, has already seen steady growth in transaction volumes, and both sides expressed satisfaction with its progress.
The mechanism is expected to reduce dependence on third-country currencies, thereby facilitating smoother trade flows and enhancing financial cooperation between the two neighbours.
The joint statement issued after Prime Minister Narendra Modi and Myanmar President U Min Aung Hlaing’s talks highlighted the commitment to closer collaboration in Agro-processing, petroleum, energy, and mining.
These sectors were identified as priority areas for investment and cooperation, with both countries pledging to work within their respective national laws and regulations to advance mutual interests.
President Hlaing is on his first official foreign visit since assuming office in April, underscoring the importance Myanmar attaches to its ties with India. His visit, spanning from 30 May to 3 June, began with a spiritual stop at Bodh Gaya, where he offered prayers at the Mahabodhi Temple and other Buddhist sites, reaffirming the civilizational and spiritual bonds between the two nations.
On 31 May, he addressed the India-Myanmar Business Conclave in New Delhi, jointly organised by UMFCCI and CII, where business leaders explored avenues for expanding trade and investment.
On 1 June, President Hlaing held wide-ranging discussions with Prime Minister Modi at Hyderabad House in New Delhi. The talks covered trade, defence, security, border management, development assistance, and cultural exchanges.
Prime Minister Modi emphasised that Myanmar lies at the intersection of India’s Neighbourhood First, Act East, and MAHASAGAR policies, making it a strategic partner in India’s regional outreach.
Connectivity projects featured prominently, with both leaders reaffirming their commitment to completing the Kaladan Multi-Modal Transit Transport project and the India-Myanmar-Thailand Trilateral Highway, despite delays caused by security challenges in Myanmar. Foreign Secretary Vikram Misri noted that Myanmar assured India it would do “everything” to push these projects forward.
The issue of cross-border insurgent activity was also raised by Prime Minister Modi, who sought assurances that Myanmar would act against groups operating near the border.
President Hlaing reiterated that Myanmar’s territory would not be allowed to be used against India’s security interests and pledged cooperation to address these concerns. Both sides underscored the importance of preventing misuse of sovereign territory for activities inimical to their security.
Education and cultural ties were strengthened with the announcement that the Mekong Ganga ICCR scholarships for Myanmar students would be increased from 36 to 100 from 2026 onwards. Prime Minister Modi also conveyed India’s support for Myanmar-led efforts towards peace, stability, national reconciliation, and socio-economic development, while President Hlaing expressed appreciation for India’s constructive role.
Following his meeting with Prime Minister Modi, President Hlaing met President Droupadi Murmu at Rashtrapati Bhavan. President Murmu described Myanmar as India’s “gateway to Southeast Asia,” highlighting the strategic importance of bilateral ties. External Affairs Minister S Jaishankar and National Security Adviser Ajit Doval also separately called on the visiting dignitary, further underlining the depth of engagement.
President Hlaing’s itinerary included a visit to the NTPC Energy Technology Research Alliance (NETRA) complex in Greater Noida, where he observed advanced research in clean energy innovation, renewable energy integration, and grid resilience.
His engagements in Delhi concluded with a luncheon hosted by Prime Minister Modi, after which he prepared to travel to Mumbai for further meetings with the Governor and Chief Minister of Maharashtra, as well as business leaders from diverse sectors including agriculture, pharmaceuticals, energy, banking, construction, IT, communications, trading, and logistics.
The Myanmar delegation accompanying President Hlaing comprised Union Ministers for Foreign Affairs, Finance & Revenue, Agriculture, Livestock & Irrigation, Industry & MSME Business Development, and the Governor of the Central Bank of Myanmar, reflecting the comprehensive nature of the visit.
The joint statement concluded by reaffirming the long-standing friendship and close partnership between India and Myanmar, with both countries committed to strengthening cooperation for mutual benefit. President Hlaing extended an invitation to Prime Minister Modi to visit Myanmar at a mutually convenient date, signalling the continuity of high-level exchanges.
ANI
