India, Myanmar back Rupee-Kyat trade, cooperation in energy, mining

India and Myanmar agreed to enhance bilateral trade via a Rupee-Kyat settlement mechanism and backed closer cooperation in agro-processing, petroleum, energy, and mining during talks between PM Modi and President U Min Aung Hlaing in New Delhi.

Boosting Bilateral Trade and Investment

India and Myanmar on Monday agreed to facilitate and enhance bilateral trade through the Rupee-Kyat settlement mechanism and backed closer cooperation in agro-processing, petroleum, energy and mining.

According to a joint statement issued following Prime Minister Narendra Modi and Myanmar President U Min Aung Hlaing's high-level talks earlier today, "Both sides agreed to facilitate and enhance bilateral trade, including through the Rupee-Kyat settlement mechanism, and appreciated the steady growth in the volume of transactions recorded since its operationalisation in May 2024."

"Both sides also expressed support for closer trade and investment cooperation in the areas of mutual interest, such as agro-processing, petroleum, energy, and mining sectors, in accordance with their respective national laws and regulations," it added.

High-Level Talks Review Bilateral and Regional Issues

The Myanmar president is on an official visit to India from May 30 to June 3 at the invitation of Prime Minister Narendra Modi. This is Min Aung Hlaing's first foreign visit after he assumed the charge as the President of the Southeast Asian country back in April.

During their talks earlier today at the Hyderabad House in the national capital, PM Modi and President Hlaing reviewed bilateral, regional and global issues. According to the joint statement, PM Modi stated that Myanmar "lies at the confluence of India's Neighbourhood First, Act East and MAHASAGAR policies," and discussions covered trade and economic ties, defence and security, border management, development assistance and cultural exchanges.

Focus on Completing Key Connectivity Projects

On connectivity, PM Modi underlined that "enhanced connectivity would foster mutually beneficial economic linkages and shared prosperity in the region." Both sides shared the importance of working towards the completion of the Kaladan Multi-Modal Transit Transport project and the India-Myanmar-Thailand trilateral highway.

"The discussions underscored the importance of strengthening bilateral cooperation, including trade and economic ties, defence and security, border management, development assistance and cultural exchanges. Both sides noted ongoing discussions on various bilateral Agreements and Memoranda of Understanding and looked forward to their early conclusion," the statement read.

"The Prime Minister underlined that enhanced connectivity would foster mutually beneficial economic linkages and shared prosperity in the region. In this regard, both sides shared the importance of working closely towards the completion of the Kaladan Multi-Modal Transit Transport project and the India-Myanmar-Thailand trilateral highway," it added.

Misri, during the briefing, also stated that Myanmar assured India it will do "everything" to push two key connectivity projects, stalled due to active hostilities in the Southeast Asian nation, to completion during the talks between PM Modi and Myanmar President. The Foreign Secretary noted that the Kaladan Multi-Modal Transit Transport Project and the India-Myanmar-Thailand Trilateral Highway have faced delays due to security challenges, noting that both projects remain a "major priority" despite delays.

"This is something that remains a major priority. It was raised by the Prime Minister today with the President, and the President once again gave his assurance that Myanmar would do everything to ensure that these projects moved forward towards completion," Misri said.

Strengthening Security and Development Cooperation

The joint statement also noted that the Prime Minister announced that the Mekong Ganga ICCR scholarships for Myanmar students would be enhanced from 36 to 100 from 2026 onwards.

Reaffirming India's support for Myanmar's sovereignty and territorial integrity, both sides "underscored the importance of preventing the misuse of sovereign territory for activities inimical to their security interests," with President Hlaing reiterating Myanmar's assurance that "its territory would not be permitted to be used against India's security interests."

Addressing Cross-Border Insurgency

Foreign Secretary Vikram Misri, during a special briefing on the visit, revealed that Prime Minister Modi directly confronted the issue of cross-border insurgent activity during his discussions with the Myanmar President. "There is the very important question of the activities of Indian insurgent groups in Myanmar close to our borders. And this is something again that the Prime Minister raised with the President," Misri said.

"President once again reiterated his assurance that Myanmar was sensitive to these concerns and again would do everything necessary to ensure that there was action against these and these did not become a cause of threat against the security of India," he added.

PM Modi conveyed support for "Myanmar-led efforts towards achieving peace, stability, national reconciliation and socio-economic development" and offered continued assistance based on mutual respect. President Hlaing "appreciated India's constructive support and cooperation".

Myanmar President's Engagements in India

Following his meeting with PM Modi, the Myanmar President also met President Droupadi Murmu at the Rashtrapati Bhavan, during which President Murmu described Myanmar as India's "gateway to Southeast Asia", underlining the strategic importance of ties between the two neighbouring countries.

Min Aung Hlaing concluded his Delhi leg of his first official visit to India and is scheduled to travel to Mumbai for further engagements from June 2. Hlaing arrived in India on May 30 and was accompanied by the Union Ministers for the President's Office, Foreign Affairs, Finance & Revenue, Agriculture, Livestock & Irrigation, and Industry & MSME Business Development, along with the Governor of the Central Bank of Myanmar.

At the start of his visit on May 30, President Hlaing travelled to Bodh Gaya, where he offered prayers at Mahabodhi Temple, Mahabodhi Meditation Centre and Sujata Temple. The visits "underscored the enduring spiritual and Buddhist ties, as well as the people-to-people links, between the two countries."

On May 31, he delivered a keynote speech at the India-Myanmar Business Conclave in New Delhi, jointly organised by UMFCCI and CII. Business heads from both sides discussed avenues for strengthening and expanding bilateral trade and commercial opportunities. The President also toured the NTPC Energy Technology Research Alliance (NETRA) complex in Greater Noida to observe advanced R&D work, including in clean energy innovation, energy efficiency, renewable energy integration and grid resilience.

On June 1, President Hlaing held talks with PM Modi in New Delhi and "charted the way forward for the relationship." PM Modi also hosted a luncheon in his honour. External Affairs Minister S Jaishankar and National Security Adviser Ajit Doval also separately called on President Hlaing.

Hlaing will now visit Mumbai from June 2 to June 3, with Prime Minister Modi expressing "confidence that the meetings of the President with the Governor of Maharashtra and the Chief Minister, as well as his business engagements during his upcoming visit to Mumbai, would further strengthen existing bilateral cooperation and economic ties," as per the joint statement.

A business delegation from agriculture, pharmaceuticals, energy, banking, construction, IT, communications, trading and logistics sectors, along with members of the Myanmar-India Friendship Association, is part of the Myanmar delegation.

President Hlaing thanked PM Modi for the "warm hospitality" and extended an invitation to the Prime Minister to visit Myanmar at mutually convenient dates. "The official visit of President U Min Aung Hlaing reaffirmed the long-standing friendship and close partnership between Myanmar and India and the shared commitment of both countries to further strengthen cooperation for the mutual benefit of the two countries," the joint statement read. (ANI)

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