“India and BIMSTEC: Strategic Prospects, Challenges, and the Way Forward”
(Based on the article “Setting sail with BIMSTEC” and contextual inputs)
Introduction: A Timely Opportunity for Regional Integration
The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), with the 2025 summit hosted by Sri Lanka, offers a critical opportunity for India to expand its geopolitical and economic presence in the Bay of Bengal and the Indo-Pacific. Prime Minister Narendra Modi’s renewed commitment underlines the importance of regional connectivity, disaster resilience, and economic cooperation.
Historical Background and Evolution
- Established in 1997 as BIST-EC (Bangladesh, India, Sri Lanka, Thailand Economic Cooperation).
- Renamed BIMST-EC with Myanmar’s inclusion, and finally BIMSTEC in 2004 with the addition of Nepal and Bhutan.
- HQ: Dhaka, Bangladesh.
- Comprises 7 countries: 5 from South Asia (India, Bangladesh, Bhutan, Nepal, Sri Lanka) and 2 from Southeast Asia (Thailand and Myanmar).
- Accounts for 22% of global population with a combined GDP of over $2.7 trillion.
Geopolitical and Economic Significance
- Bridge between South and Southeast Asia: Links SAARC and ASEAN regions.
- India’s Act East Policy: BIMSTEC aligns with India’s aim to deepen strategic and economic ties with East and Southeast Asia.
- Alternative to SAARC: BIMSTEC’s utility has grown amidst SAARC’s paralysis due to India-Pakistan tensions.
- Bay of Bengal’s strategic importance: The region is vital for maritime security, energy trade routes, and the Indo-Pacific balance.
Key Areas of Cooperation (14 sectors with lead countries)
- Trade and Investment
- Technology and Innovation
- Energy and Connectivity
- Public Health and Poverty Alleviation
- Environment, Climate Change, Counter-Terrorism
- Cultural Exchange and People-to-People Contact
- Agriculture, Tourism, Fisheries
Recent Institutional Developments
- Kathmandu Summit: Adoption of the BIMSTEC Charter for a stronger legal and institutional foundation.
- Permanent Working Committee and BIMSTEC Development Fund established.
- Proposals for enhanced transport connectivity, technology transfer facilities, and coastal shipping.
- Master Plan for Transport Connectivity endorsed.
- New forums proposed: for parliamentarians, universities, media, and cultural organisations.
India’s Role and Strategic Objectives
- India is a natural leader within BIMSTEC and actively pushes for institutional reform and connectivity.
- Hosting of the BRICS-BIMSTEC summit in Goa (2016) brought visibility to the bloc.
- India has driven progress on counter-terrorism, cybersecurity, energy cooperation (e.g. BIMSTEC Energy Centre in Bengaluru), and disaster relief.
Challenges and Limitations
- Inadequate Institutional Capacity:
- Secretariat in Dhaka underfunded and under-resourced.
- Delays in formalisation of legal instruments and FTAs.
- Lack of annual summits or follow-up mechanisms.
- Slow Progress on Agreements:
- The Free Trade Agreement, first proposed in 2004, remains unfinished due to India-Thailand disagreements.
- Motor Vehicle Agreement and Coastal Shipping Agreement are yet to come into force.
- Geopolitical Disruptions:
- Myanmar’s military coup and India’s balancing act between regional security and democratic values.
- China’s growing influence in Nepal, Sri Lanka, and Myanmar creates competition.
- Bilateral Tensions:
- India-Nepal, India-Sri Lanka, and Bangladesh-Myanmar frictions affect multilateral momentum.
- Differences among members on reviving SAARC vs. strengthening BIMSTEC.
- Reactive Disaster Approach:
- Need for a proactive and coordinated disaster management mechanism, especially in light of frequent cyclones, floods, and earthquakes.
Successes and Positive Outcomes
- Cooperation on counterterrorism and coastal security.
- Formation of BIMSTEC Network of Policy Think Tanks.
- Setting up of Energy Centre in Bengaluru.
- Signing of Grid Interconnection Agreement (2018).
- Enhanced business dialogue via the BIMSTEC Business Council.
Way Forward: Strategic Rejuvenation of BIMSTEC
- Strengthen the Secretariat with more funding, manpower, and decision-making autonomy.
- Finalise and operationalise key agreements, especially the FTA, MVAs, Coastal Shipping, and disaster management protocols.
- Prioritise tangible cooperation in trade, tourism, disaster relief, energy sharing, and MSME promotion.
- Build regional value chains and integrate them with global supply chains.
- Empower women entrepreneurs and foster digital connectivity across borders.
- Regular Summits and Track II Dialogues to build confidence and visibility.
- India must use its diplomatic capital to mediate tensions and build consensus among member nations.
- Create a “Bay of Bengal Community” to symbolise unity, identity, and shared prosperity in the region.
Conclusion: The Case for Renewed Regionalism
BIMSTEC, though slow in progress, remains a powerful alternative to dysfunctional SAARC. As India balances ties with ASEAN, manages the Indo-Pacific strategic shift, and counters China’s influence, BIMSTEC offers a vital space for proactive regional diplomacy. With strong political will, strategic coherence, and institutional strengthening, BIMSTEC can truly evolve into a model of interregional cooperation and collective growth.