To scale up trade with Myanmar, the commerce department is pushing for greater trade through the shared land border between the two countries. Launching a study on the matter by policy think tank RIS, and the department, Commerce Secretary Rita Teaotia on Wednesday said greater border trade will positively impact the economy of the North Eastern region, as well as people to people contact.
The ministry is keen to tap into the growth story of the South East Asian nation, which, according to the International Monetary Fund (IMF), is expected to witness 8.6 per cent gross domestic product (GDP) growth in 2016, making it the fastest growing economy.
India's trade with Myanmar reached over $2 billion in 2014, with exports from India accounting for more than half of the trade. Pharmaceuticals were the highest exported item, followed by agricultural residues like oil cakes and heavy machinery.
Last year, sugar and sugar confectioneries' exports have grown the highest.
India currently offers Myanmar duty-free trade along 96.4 per cent of all tariff lines under the Duty Free Tariff Preference scheme and the free trade agreement India has with the Asean region, of which Myanmar is a part.
High levels of security infrastructure in the North East, poor infrastructure, among other factors was cited by the department officials as responsible for impeding the growth of trade with neighboring Myanmar.
"India and Myanmar need to work together on a road map to facilitate trade not just between the two but among other ASEAN nations with a view to boosting growth." Teaotia said.
