BIMSTEC: Significance & Challenges

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The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) has emerged as a pragmatic alternative to SAARC, promoting regional collaboration across South and Southeast Asia. At the 6^th BIMSTEC Summit in Bangkok, PM Modi reaffirmed India’s commitment to regionalism by unveiling a 21-point action plan, aligned with key doctrines like ‘Neighbourhood First,’ ‘Act East,’ MAHASAGAR Vision, and the Indo-Pacific framework, positioning India as a stabilising force in the region.

About BIMSTEC

Established: In 1997, through the Bangkok Declaration to promote regional cooperation.
Geographic Focus: Connects South and Southeast Asian nations around the Bay of Bengal.
Members: 7 countries – Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand.
Founding Members: Bangladesh, India, Sri Lanka, and Thailand.
Core Objective: Foster economic cooperation, social progress, and collaboration in science, technology, and development across the region.

Significance of BIMSTEC for India

Strategic Importance: It bridges South and Southeast Asia, reinforcing India’s Act East and Neighbourhood First policies.
Economic Integration: Facilitates regional trade, investment, and value chain development, with prospects of a BIMSTEC Free Trade Agreement.
Security Cooperation: Strengthens counter-terrorism, maritime security, and disaster response through joint efforts like BIMSTEC DMEx.
Energy and Climate Collaboration: Enables regional energy grid planning and joint climate resilience efforts via the BIMSTEC Energy Centre.
Northeast Connectivity: India has developed the Sittwe Port in Myanmar and is working on port connectivity programs across the Bay of Bengal
- India, as BIMSTEC’s largest economy, can use the bloc to advance its ‘Act East’ policy and strengthen ties with Southeast Asian nations.
- Actively involved in BIMSTEC-led initiatives like the BBIN Motor Vehicle Agreement and India-Myanmar-Thailand Trilateral Highway to reduce dependency on the Siliguri Corridor.
Energy Security: Facilitates regional power trade and renewable energy projects.
Geopolitical Influence: Strengthens India’s presence in the Indo-Pacific region.

Why BIMSTEC is a Better Alternative to SAARC?

SAARC Limitations	BIMSTEC Advantages
India-Pakistan tensions hinder cooperation.	Pakistan’s exclusion leads to no political deadlock.
Limited progress on connectivity.	Projects like BBIN and IMT Highway are active.
Minimal security cooperation.	Security and maritime cooperation were promoted.
Insufficient trade integration.	Working on links between FTA, energy, & digital economy.
No significant leadership initiative.	India takes a proactive leadership role.

Challenges in BIMSTEC’s Advancements

Institutional Weakness: Lack of a strong permanent secretariat with sufficient funding and staff hinders coordination and implementation.
Slow Progress on Agreements: Critical initiatives like the BIMSTEC Free Trade Agreement (FTA) and connectivity projects are experiencing delays and remain unfinished.
Political Instability in Member States: Ongoing crises in Myanmar (civil war), Nepal, and Sri Lanka hinder regional cooperation and long-term planning.
Overlapping Priorities: Some members prioritise ASEAN or bilateral relations over BIMSTEC, which reduces collective momentum.
Limited Financial Commitment: Inadequate financial contributions and investments impede the implementation of large-scale projects and infrastructure development.
Unequal Member Commitments: Some member nations prioritise ASEAN or SAARC over BIMSTEC.

India’s Strategy to Reinvigorate BIMSTEC

Strengthen Regional Integration: Push for early conclusion of the BIMSTEC Free Trade Agreement and implement trade facilitation measures.
Bilateral Diplomacy within Multilateralism: Proactively engage with key members like Thailand, Bangladesh, and Sri Lanka to resolve bilateral issues and build trust.
Unilateral Leadership for Collective Good: Adopt initiatives such as visa relaxations or tariff reductions to boost regional tourism and trade.
Maritime and Island-led Development: Transform Andaman & Nicobar Islands into a maritime economic and security hub.
Port and Regulatory Upgradation: Modernise eastern ports and harmonise maritime laws for seamless regional maritime connectivity.

6^thBIMSTEC Summit

Key Outcomes

BIMSTEC Bangkok Vision 2030 adopted with focus on building a Prosperous, Resilient, and Open (PRO) BIMSTEC by 2030.
The Maritime Transport Cooperation Agreement was assigned to enhance regional maritime connectivity and reduce trade costs.

India-led Initiatives at the 6^th BIMSTEC Summit

BODHI Initiative: BIMSTEC for Organised Development of Human Resource Infrastructure (BODHI) to train BIMSTEC students at Nalanda University and Forest Research Institute.
BIMSTEC Centres of Excellence in India: New institutions for disaster management, maritime transport, traditional medicine, agriculture and farmer training.
Trade & Economic Engagement: Feasibility study on local currency trade; BIMSTEC Chamber of Commerce to be set up; Annual BIMSTEC Business Summit to be hosted in India.
Security & Space Cooperation: India will host the first BIMSTEC Home Ministers’ Meeting, with cyber security, trafficking, terrorism, and satellite collaboration as focus areas.
Youth, Sports & Cultural Diplomacy: Including the Young Leaders’ Summit, Hackathon, Visitors Programme, Athletics Meet (2025), BIMSTEC Games (2027) and the Traditional Music Festival hosted in India.
Energy & Connectivity: Operationalisation of BIMSTEC Energy Centre in Bengaluru; Proposal for electric grid interconnection across member states.
Digital & Fintech Integration: Pilot study on digital infrastructure across BIMSTEC; Proposal to link India’s UPI with regional payment systems for financial inclusion.

Way Forward: From Regional Framework to Functional Partnership

Institutional Reform: Establish a well-resourced Permanent Secretariat with professional staffing and clear mandates.
Connectivity Acceleration: Fast-track critical infrastructure projects like the Kaladan Multimodal Transit and India–Myanmar–Thailand Highway.
Economic Integration: Finalise the BIMSTEC FTA and facilitate regional value chains and cross-border trade mechanisms.
Targeted Sectoral Cooperation: Deepen collaboration in disaster management, renewable energy, and digital public infrastructure.
Inclusive Growth: Provide technical and financial support to Least Developed Countries like Bhutan and Nepal for capacity-building.
People-to-People Engagement: Promote academic exchanges, cultural diplomacy, and relax visa norms to foster regional unity.

“BIMSTEC represents the collective vision of a connected, cooperative, and prosperous Bay of Bengal region.” As a pragmatic alternative to SAARC, it aligns with India’s strategic and economic interests. With focused reforms, enhanced connectivity, and inclusive cooperation, BIMSTEC can emerge as a key pillar of regional stability and Indo-Pacific integration.

Reference: Indian Express | PMF IAS: BIMSTEC

PMF IAS Pathfinder for Mains – Question 142

Q. The changing global order highlights the importance of regional groupings such as BIMSTEC for India. Analyse the main challenges faced by BIMSTEC and propose strategies for its revitalisation. (150 Words) (10 Marks)

Approach

Introduction: Write a brief overview of BIMSTEC and discuss its significance for India.
Body: Critically examine the key challenges facing BIMSTEC & mention holistic strategies for revitalising BIMSTEC.
Conclusion: Discuss the importance of revitalising BIMSTEC for India & outline future actions, including institutional reforms and enhanced cooperation.