India-Burma Relationship in Year 2004

Mizzima News (www.mizzima.com)

January 3, 2005

It was an eventful year for India and Burma.

Both countries had come closer to further cementing their relations. In the field of trade both countries agreed to increase the volume of trade up to US$1 billion by 2006. The new Congress-led Indian government appeared more pro-active towards Burma as it initiated many steps including extending a $7 million credit line to the crisis-hit Burma. Though India had not been able to get the Burmese market through the land routes, it opened a new trade point (Rih) across the border.

The year also marked the visit of State Peace and Development Council (SPDC)Chairman Than Shwe along with senior ministers of the Junta. Than Shawe had a series of meetings with the heads of Indian companies and sought their investment in the country. The year 2004 will probably be remembered by Burma and other ASEAN countries for the famous India-ASEAN car rally.

The rally, organized to strengthen relations among ASEAN countries, received a positive response from the people. Late in the year, to gear up more trade, the Indian Commerce Ministry relaxed norms on currency, allowing Indian traders to accept all currency during export and import with Burma.

After the U.S. economic sanctions the Junta had to use euros. This move was widely appreciated by the trade bodies.

On the other hand, in the field of drug trafficking, which had been creating a serious problem over the years between the countries, both India and Burma had vowed to fight more vigorously by involving enforcement agencies. 

The two countries had signed an accord deciding to fight jointly. India had also provided new equipment to Burma to take action against the drug menace. Similarly, for tackling the insurgency problem,SPDC Chairman Than Shwe assured full cooperation with the Indian government to root out militants taking shelter in bordering areas of the country. His assurance brought a sigh of relief to the Indian Home Ministry, which has been fighting insurgency for the last several decades. 

Though several Indian opposition parties had been mounting pressure on the Congress-I to take pro-democracy steps, the present Indian government did not pay any attention, rather it seemed busy appeasing the Junta, which evoked sharp repurcussions among opposition parties. India wanted to satisfy the Junta for two reasons; the growing Chinese influence and the insurgency problem. To overcome these problem, the Indian Government ignored the pro-democracy movement.

By and large, the complete year was smooth for both India and Burma.