The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), comprising 7 members, was established in 1997 to enhance regional cooperation. Combined GDP of $4.8 trillion with ~1.8 billion population (22% of global population). Critical maritime zone with $3 trillion blue economy potential (World Bank 2022).
However, its progress has been slow due to several challenges:
- Institutional Weaknesses
- Lack of a Permanent Secretariat until 2014, and even now, it suffers from underfunding and bureaucratic delays.
- No dispute resolution mechanism, unlike ASEAN or SAARC, leading to stalled projects.
- Geopolitical Rivalries & Trust Deficits
- India-China competition as Myanmar and Thailand’s growing ties with China reduce their reliance on BIMSTEC.
- India’s dominance concerns because smaller members (Nepal, Bhutan) fear asymmetrical benefits, while Bangladesh and Sri Lanka seek balanced engagement.
- Myanmar’s Political Instability disrupts connectivity projects like the India-Myanmar-Thailand Trilateral Highway.
- Slow Implementation of Key Projects
- Motor Vehicles Agreement (MVA) for seamless trade remains unsigned due to non-tariff barriers and security concerns.
- Energy Grid & Coastal Shipping Agreements face delays due to regulatory mismatches.
- Limited Economic Integration
- Intra-BIMSTEC trade is just ~7% of total trade, compared to ~25% in ASEAN.
- No common trade agreement—the BIMSTEC FTA negotiations began in 2004 but remain incomplete.
India’s Strategic Focus: Alignment & Divergence with BIMSTEC
Alignment with BIMSTEC
- Neighborhood First & Act East Policy: BIMSTEC bridges South and Southeast Asia, aligning with India’s Indo-Pacific vision.
- Security Cooperation: India promotes counter-terrorism (BIMSTEC Convention, 2021) and maritime security in the Bay of Bengal.
- Infrastructure Push: Projects like Kolkata-Dhaka cargo shipping and Kaladan Multimodal Transit Corridor support BIMSTEC’s connectivity goals.
Divergence & Unilateral Actions
- SAARC vs. BIMSTEC Prioritization: India’s de facto boycott of SAARC (due to Pakistan) has shifted focus to BIMSTEC, but not all members see it as a replacement.
- Bilateral Over Multilateral Approach: India’s separate deals with Bangladesh (BBIN MVA) and Sri Lanka (UDAN flights) bypass BIMSTEC consensus.
- Strategic Exclusivity: India’s Quad and Indo-Pacific engagements sometimes overshadow BIMSTEC’s regionalism.
Measures to Enhance BIMSTEC’s Functionality
- Strengthening Institutional Capacity
- Adequate Funding: Member states should increase contributions to the Secretariat.
- Fast-Track Dispute Mechanism: A BIMSTEC Arbitration Council for trade and infrastructure disputes.
- Accelerating Economic Integration
- Finalize BIMSTEC FTA by 2025, with special provisions for LDCs (Nepal, Bhutan, Myanmar).
- Adopt a Single BIMSTEC Visa for tourism and business, modeled after ASEAN’s visa-free travel.
- Improving Connectivity
- Operationalize MVA & Coastal Shipping Agreement by 2026.
- Complete India-Myanmar-Thailand Highway with Japanese investment (to counter China’s BRI influence).
- Balancing Geopolitics
- Engage China as a Dialogue Partner (like ASEAN) to prevent BIMSTEC’s marginalization.
- Leverage Thailand’s ASEAN Leadership to bridge South-Southeast Asia.
- Focus on Non-Traditional Security
- Joint Disaster Management Force for cyclones/floods (Bay of Bengal is climate-vulnerable).
- Maritime Security Coordination against piracy and illegal fishing.
Conclusion: A Pragmatic Path Forward
BIMSTEC’s potential remains untapped due to structural inefficiencies, geopolitical tensions, and weak economic linkages. While India’s strategic focus on the Bay of Bengal aligns with BIMSTEC’s goals, its unilateralism and Quad engagements create perceptions of neglect. To succeed, BIMSTEC must emulate ASEAN’s consensus-building, prioritize trade and connectivity, and balance great-power rivalries.
