The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) has emerged as a crucial platform for India to strengthen its ties with neighboring countries along its eastern coast. As the South Asian Association for Regional Cooperation (SAARC) has lost momentum due to political tensions, BIMSTEC has gained prominence in India’s regional strategy.
Established in 1997, BIMSTEC comprises seven nations: Bangladesh, India, Myanmar, Sri Lanka, Thailand, Nepal, and Bhutan. This diverse group represents a significant portion of the global population and economy, with 1.8 billion people (22% of the world’s population) and a combined GDP of $4.5 trillion (4.4% of global GDP). The grouping’s potential for economic cooperation and regional development is substantial, making it an attractive focus for India’s foreign policy.
India’s renewed interest in BIMSTEC aligns with its broader "Act East" policy, which aims to strengthen economic and strategic ties with Southeast Asian countries. By fostering closer relationships with BIMSTEC members, India seeks to create a counterbalance to China’s growing influence in the region, particularly through initiatives like the Belt and Road Initiative (BRI).
The appointment of Indian diplomat Indra Mani Pandey as BIMSTEC Secretary General in January 2024 underscores India’s commitment to the organization. This leadership role allows India to shape the group’s agenda and priorities, potentially accelerating progress on key initiatives.
BIMSTEC has identified seven sectors for cooperation, with each member country taking the lead in a specific area:
One of BIMSTEC’s key initiatives is the Master Plan for Transport Connectivity, a 10-year strategy (2018-2028) supported by the Asian Development Bank. This plan aims to improve transportation links between member countries, facilitating trade and economic integration. Additionally, an Agreement on Maritime Transport Cooperation is expected to be signed at the upcoming summit, further enhancing regional connectivity.
The blue economy presents significant opportunities for BIMSTEC members. The Bay of Bengal offers vast potential for sustainable marine resource utilization, including fisheries, offshore energy, and maritime trade. India, with its extensive coastline and maritime expertise, is well-positioned to lead initiatives in this sector.
Despite its potential, BIMSTEC faces several challenges. Infrastructure disparities among member states hinder seamless trade and connectivity. Progress on a comprehensive Free Trade Agreement (FTA) has been slow, with negotiations ongoing since 2004. There are also concerns about equitable distribution of benefits from the group’s initiatives among all member countries.
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