Chapter Four. MGCI: Impact on Bilateral Ties
p. 31-36
Entrées d’index
Mots-clés : Asie du Sud-Est
Texte intégral
1In addition to the declarations signed at high-level meetings in the multilateral format of MGCI, this new engagement has witnessed several new initiatives between India and these five riparian states of the GMS region. New initiatives have happened both at bilateral and multilateral levels and sometimes it is difficult to strictly categorize them according to the nature of their formal format. Also, the pace and formulation of India’s initiatives varies from country to country which is not always possible to gauge by examining only their multilateral deliberations which also remain circumscribed by the fact that these often need larger consensus amongst diverse member countries. But, there is no doubt that, the MGCI has influenced India’s bilateral ties with each of these five states. These also include initiatives that involve a few and not all of the GMS countries.
2Some of these well-known multilateral projects to influence India’s bilateral ties with selected GMS countries and to remain integral to MGCI, include project-forums like the Ayeyawade-Chao Phraya-Mekong Economic Cooperation (ACMECS)*, Bay of Bengal Initiative for Multisectoral Technical and Economic Cooperation (BIMSTEC)†, Mekong-Ganga Cooperation Initiative (MGCI)‡ and the India-Myanmar-Thailand Transport Linkage.§ But it remains difficult to gauge the impact of each of these bilateral or multilateral initiatives on India’s bilateral relations. However, following the launch of MGCI one can note a considerable transformation in the nature and magnitude of India’s bilateral trade with each of these five states (See Graph below).
3At the broader scale trends in international relations have also facilitated such bilateral equations. For instance, USA today describes India, Thailand and the Philippines as ‘Non-NATO allies’ which generates new avenues for improving their bilateral relations.47 All this perhaps provides one objective indicator of the changing nature of India’s engagement with GMS though the question of direct influence of MGCI remains open to interpretations. And it is in this larger positive backdrop that one can analysis the transformation in India’s bilateral ties with GMS countries.
1 - Major Drivers of Transformation
4To look at some of these MGCI facilitated bilateral ties, Viet Nam has particularly emerged as one strong partner in India’s recent initiatives. India is now amongst the top ten investor countries in Viet Nam and, both sides agree, that this remains far lower than the potential.48 India’s NIIT, APTECH, TCS, have opened more than 40 branches in Viet Nam. There are bilateral cooperation agreements in science and technology with Laos and Viet Nam. India offered more than USD100 million to Viet Nam to set up Advanced Resource Centre in IT in Ha Noi. Also India offered USD122.07 million to Viet Nam to strengthen IT infrastructure in six other institutions in Viet Nam. All this Indian assistance in credit, education, training, science and technology and other fields is duly acknowledged by Viet Nam as a major contribution to their cause of Doi Moi (revival), Viet Nam’s modernization, industrialization and international integration drive.49
5As for India as well, Viet Nam has been one strong supporter for the country’s claim for a permanent seat in the UN Security Council and welcomes India’s ‘Look East’ policy, especially India’s engagement with ASEAN and MGCI as also its participation in all other forums in the Asia-pacific area. There has also been a boom in their people-to-people contacts with over 13,300 Indians visiting Viet Nam during 2005 and this has great potential given that about a million Indians now travel to Singapore, Malaysia and Thailand on an annual basis. Viet Nam’s Deputy Prime Minister, Pham Gia Khiem, was in Delhi to attend to the 12th meeting of the India-Viet Nam Joint Commission on 27th February 2007. Amongst other agreements, the two leaders resolved to achieve USD2 billion annual bilateral trade by 2010 from its current level of USD1 billion for 2006.50 To establish Delhi-Ha Noi air and rail link the two have already completed feasibility studies. Viet Nam’s Prime Minister was scheduled to visit India in July 2007. All this reflects the new tenor of Indo-Viet Nam ties which have been greatly facilitated by the MGCI deliberations.
6Similarly, India’s ties with Myanmar have also completely changed over the last one decade. Following their initial official contact in 1993, year 2006 saw India selling military equipment and weapons to the military junta. Following the discussions between New Delhi and Yangon in October 2006, the Indian government has also proposed to build a railway line from Jiribam to Imphal and Moreh–under the aegis of MGCI. For this, India’s Rites Ltd. has conducted a feasibility study recommending a rail link between Jiribam, Imphal and Moreh at a cost of USD 73 billions This would be the first step, said official sources, for building a trade route through Delhi-Ha Noi Rail link. The proposed link would require construction of rail link between Tamu (Moreh), Kalay and Segyi at a cost of USD 33 billions in Myanmar and rehabilitation of the existing line from Segyi to Chaungu Myohaung at a cost of USD 7059 billions.51
7Thailand has traditionally been the closest to India of all the GMS countries. It has also been one of the most influential players in the GMS. While being a host to over 100,000 members of the Indian Diaspora, it has had extensive socio-cultural and economic linkages with India. Although Myanmar may have a far larger (3.5 million) Indian population, the Indian Diaspora in Thailand has been far more active, prosperous and influential.52 Thailand has clearly been India’s traditionally strongest friend in the GMS. However, for long, this had not quite resulted in a robust economic engagement and it is only recently (coinciding with MGCI) that Indo-Thai bilateral trade and investments have picked up momentum making India’s Birla Group, TATAs and others well-known names in Thailand.
8Thai interim Prime Minister, General (Retd), Surayud Chulanont visited India during 25-28th June 2007. In a joint statement they agreed to move their ties beyond traditional social and economic linkages and to expedite negotiations for stronger defence and security relationships between the two countries.53 They also expressed confidence that Indo-Thai bilateral trade which was worth USD3.4 billion for 2006 will exceed USD4 billion for 2007. The last visit was made by then-Prime Minister Thaksin Shinwatra in September 2001. Both sides then indicated that they were close to signing an FTA on goods which would become effective by 2010.54 India also announced a THB10 million grant for setting up the Sanskrit Studies Center in Thailand.55 India and Thai land have also been trying to forge stronger ties especially with India’s northeastern region. On invitation of India’s Minister in charge of Department of North Eastern Region, a Thai delegation led by its Commerce Minster, Krirk Krai Jirapaet, had visited Tripura, Assam, Meghalaya and held meetings in Northeastern Council headquarters in Shilong in June 2007.56
2 - Major New Sectors
9India has also offered its help in projects related to the following issues: flood control management, cultural promotion by setting up a museum of traditional textiles of the participating countries of MGC in Siam Reap (Cambodia), and English teaching, museology and conservation. Besides, India and Mekong River basin countries are also cooperating in the field of agriculture–like joint research in agricultural training and joint research amongst the agricultural research institutes in Mekong countries, and export-oriented marketing. Secondly, India is also assisting the Mekong countries in building ICT capabilities. India offered 300 fellowships in the IT sector to its partners and this sector has received a far better response than what had been expected, at least during India’s initial assessments. Thirdly, India has been cooperating with Mekong countries in health and pharmaceutics, sharing up experiences in generic pharmaceutical industries. The presence of Ranbaxy in Mekong countries with manufacturing facility in Viet Nam, promote joint production of affordable drugs like AIDS kits. Traditional medicines, like Ayurveda, and other special offers to Mekong countries’patients have often contributed to tensed relations with western countries. India’s other offers include setting up Indian hospitals and health insurance etc.
10India has also been cooperating with Mekong countries in biotechnology, promoting education exchange programs, assisting in institutional building for SME (training courses, cooperation in the handicraft sector, free space in India International Trade Fair, etc). Besides, India is cooperating to promote eco-tourism with Mekong countries. This includes relaxing visa formalities and concessions to Mekong region tourists. India and Myanmar are focusing on special tours to Buddhist destinations like pilgrimages to India to Bodh Gaya, Sarnath, Sanchi and in Myanmar, Golden Rock at Kyaiktiyo, and the Shwedagon Pagoda. Heritage tours are being promoted through Bangkok-Angkor-Luang Prabang-Sukhothai and India’s Buddhist circuit. India and Myanmar are collaborating on preparing promotional brochures as envisaged under Ha Noi Plan of Action and India’s Ministry of External Affairs is providing assistance to Myanmar’s Ministry of Tourism. Despite various limitations, the GMS countries have done remarkable well in promoting cultural tourism.57
11The MGCI has been partly effective because, despite India’s fluctuating interest, the juggernaut of the GMS has continued to move relentlessly. The 14th meeting of the GMS Ministerial Conference was held at the ADB headquarters in Manila during 19-21st June 2007. The Conference reviewed the progress made in the GMS Plan of Action and endorsed the findings and recommendations of the Mid-Term Review of the GMS Strategic Framework, 2002-2012.58 Amongst other things, these deliberations also underlined week connections of GMS with South Asia and assured that these will be addressed in the near future.59 Of particular interest amongst such future plans has been the Thaton-Payagyi-Bagan-Kalay-Tamu/Moreh (India) connection involving India, Myanmar and Thailand. This road link promises to provide an impressive connectivity for India to the GMS’ambitious road network which is likely to emerge as a major focus for future Indian policies in MGCI.
Notes de bas de page
47 P.S. Suryanarayana, “Asean under the security spotlight”, The Hindu (New Delhi), 2 January 2007, p. 11.
48 Viet Nam – Key partner in India’s “Look East” policy”, Nhan Dan (Ha Noi), 1 March 2007, at
http://www.nhandan.com.vn/english/news/010307/domestic_key.htm; “Vietnam PM supports India’s ‘Look East’ policy”, The Hindu (NewDelhi), 6 July 2006, p. 16. Despite being late entrant to economic
globalization, Viet Nam is Asia’s second fastest growing economy with its GDP having risen from $ 45 billion for 2004 to $ 60 billion for 2006
49 Vu Quang Diem, “Vietnam and India: scaling new heights”, The Hindu (New Delhi), 5 January 2007, p. 10.
50 “India, Viet Nam set bilateral trade target US$ 2 bn.”, The Hindu (New Delhi), 28 February 2007, p. 12.
51 Ibid.
52 Report of the High Level Committee on the Indian Diaspora, Ministry of External Affairs, Government of India, report available at
http://indiandiaspora.nic.in/contents.htm
53 Sandeep Dikshit, “India to step up defence ties with Thailand”, The Hindu (New Delhi), 27 June 2007, p. 1.
54 Gaurav Choudhury, “India-Thailand FTA on goods by Sept, trade to start by 2010”, Hindustan Times (New Delhi), 27 June 2007, p. 1.
55 “India to fund Sanskrit studies in Thailand”, Hindustan Times (New Delhi), 27 June 2007, p. 14.
56 Tilak Rai, “Efforts on to make ’08 Year of Thailand, N-E”, The Indian Express (New Delhi), 26 June 2007, p. 4
57 Alan Fyall and Brian Garrod, Aspects of Tourism: Tourism Marketing – A Collaborative Approach, (Clevedon, UK: Channel View Publications, 2005), pp. 299-301; also William Revill Kerr, Tourism Public Policy, and the Strategic Management of Failure, (Oxford: Pergamon, 2003), p. 63.
58 “14th GMS Ministerial Conference” (retrieved on 21st June 2007), available at http://www.adb.org/Documents/Events/2007/14th-Ministerial-Conference/default.asp
59 GMS Transport Strategy 2006-2015: Coast to Coast and Mountain to Sea: Towards Integrated Mekong Transport System, (Manila: Asian Development Bank, 2007), p. 22.
Notes de fin
* Cambodia, Lao PDR, Myanmar, Thailand and Viet Nam
† Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand
‡ Cambodia, India, Lao PDR, Myanmar, Thailand and Viet Nam
§ This new corridor network varies slightly from the one presented in the Final Report of the GMS Transport Sector Strategy Study. Adjustments have subsequently been made on the latter to take into account other key road sections that were not included in the earlier configuration. In general, only the end-points of the corridors are indicated in the meantime that the coordinates are being further refined in consultation with the countries involved.
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Mekong-Ganga Cooperation Initiative
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- Barman, Arup. (2011) Comparative Human Resource Development for Mekong-Ganga Sub-Region: A Case Based Appreciation on India’s HRD Collaboration. SSRN Electronic Journal. DOI: 10.2139/ssrn.1914186
Mekong-Ganga Cooperation Initiative
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