Road to and from Myanmar to India

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1 Presentation at Brainstorming Session on India-Myanmar Strategic Partnership, Organised by RIS, 4 February 2013 Road to and from Myanmar to India Part II New Delhi, RIS 4 th February, 2013

2 NE India & Myanmar A Win-Win Situation Regional stability Skill development Cultural development Limited financials Environment degradation Political influence of corporate Imbalance in supply & demand Hyperinflation a key challenge Regional stability Increase domestic knowledge Create new skilled jobs Increase employment Increase wage Access trade with ASEAN Secure 1,600 km shared border Eliminate terrorism India (NE) Skills Agriculture Cross border infrastructure Environment and Food Security Ecology Economy Social Technology Trade Opportunities Social Ecology Economy Boost economy Trade hub for China & India Attract foreign investment Control outmigration Remove cross border tension Myanmar

3 Across Economic, Ecology and Social Infrastructure Initiatives Economic Ecology Virtuous Cycle Technology Initiatives Climate Change Initiatives Social

4 India & Myanmar Strategic Position Share 1,600 km border and similar culture Close influence with NER and at juncture of mutual benefit Look East Strategic Forging close economic and commercial ties Increase security cooperation Emphasis historic, cultural and ideological links Political Close political engagement since 2001 Various MoU signed concerning security, science & technology, energy Shown mutual support to each other Treaty of Friendship since 1951 Foreign Investments Commercial $ 189 million as investment in projects Over $ 80 million spent to support troubled Myanmar since 2007 India trade with Myanmar crossed $ 1.8 billion in 2012 Target to cross $ 3 billion by 2014 India is at 13 th place. China leading with investment of $ 9+ billion China & Thailand currently at $ 3+ billion

5 India & Myanmar Activity at a Glance Projects Ongoing / Completed Challenges 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 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

6 Infrastructure Projects Major Initiatives Layout of India s Major Connectivity Projects with ASEAN

7 Infrastructure Project Friendship Road Tamu-Kalewa-Kalemyo 160 km 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

8 Friendship Road Amplifying Status Quo Proposal Benefits Vision Vision to become the biggest transit point between India and ASEAN Global Benchmark Create the Best Global Benchmark in Eco- Wayside Amenities Basic Resting Relief Special Fuel station Hotels Accident relief centre Parking place Toilets Security centre Banking Restaurants Information centre Rural Tourism Souvenir shop Internet Zone Transit duty free land port (widen the current list) 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

9 Infrastructure Project India-Myanmar-Thailand Triangle Moreh-Bagan-Moe triangle Trilateral Highway from Moreh in India to Moe Sot in Thailand through Bagan in Myanmar with total length of 1,360 km

10 Trilateral Highway Balance Export vs Import Traffic Proposal Benefits 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 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

11 Infrastructure Project KMTTP Kaladan Multimodal Transit Transport Project (KMTTP)

12 KMTTP Boost Trade Proposal Benefits 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 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

13 Information Communication Technology (ICT) Initiatives ICT identified as rapidly growing industry Proposal Benefits 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 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

14 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 Nationwide Sustainable Lifestyle Nationwide Sustainable Agriculture Vision: Eco-Friendly Myanmar Rainwater conservation Efficient irrigation Clean water policy Waste water management Promote energy efficiency and conservation Promote tribal way of living Encourage Eco-Cities and Eco-Tourism Promote organic agriculture activities Target to sell agricultural carbon sequestration credits Develop climate resilient crop 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

15 Across Economic, Ecology and Social NER Direct Beneficiaries Arunachal Pradesh, Nagaland, Manipur, Mizoram, Assam Infrastructure Initiatives KMTTP & Similar Infrastructure Projects Eco-Wayside Amenities Promote Rural / Tribal Tourism Economic Improve ICT Landscape E-Governance Capacity Building Technology Initiatives Indo-ASEAN Trade Zone Skills Development Prosperity, Peace & Security Virtuous Cycle High Employment Social Benefit across LEWWAC* Attract foreign investment Ecology Climate Change Policies Sustainable Agriculture Cross Border Handicraft Climate Change Initiatives

16 Roadmap and Next Steps..