India's active BIMSTEC engagement holds strategic significance

Colombo, April 4 (IANS) India considers the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) not merely a regional platform but as a key pillar of its broader geopolitical and economic strategy.

Guided by its twin pillars of the 'Act East' policy and the 'Neighbourhood First' policy, India's growing engagement with BIMSTEC over the years underscores the grouping's significance within the Indo-Pacific framework, a report said on Friday.

According to a report in the leading Sri Lankan newspaper Daily Mirror, amid the shifting global economic dynamics and diversifying supply chains, BIMSTEC offers India an opportunity to enhance regional cooperation and explore new growth avenues.

It added that the BIMSTEC grouping, comprising Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand, covers a population of over 1.8 billion and a combined GDP estimated at around USD five trillion.

“India's trade relations with BIMSTEC countries have experienced remarkable growth over the past decade. From a modest USD 20 billion in 2014, bilateral trade has more than doubled to approximately USD 48 billion in 2024. This upward trend reflects not only improved economic ties but also the region's increasing significance in India’s external trade strategy. With continued policy support, this trade volume is expected to reach USD 100 billion by 2030, demonstrating the group's untapped potential," the report detailed.

“The composition of trade has also experienced a major change. While traditional sectors such as petroleum products, pharmaceuticals, iron and steel, and textiles remain dominant, newer areas like digital services, fintech, renewable energy, and advanced manufacturing are becoming more important. This diversification shows a shift toward a more resilient and future-focused trade system," it mentioned.

According to the report beyond trade, India has ramped up its investment across BIMSTEC countries with a strategic focus on key sectors including infrastructure, energy, connectivity, and digital transformation.

“In Bangladesh, Indian investments exceeding USD three billion cover sectors such as power generation, pharmaceuticals, and logistics. Similarly, in Sri Lanka, India has contributed to port development, railway rehabilitation, and energy projects, strengthening bilateral economic ties," it noted.

The report stressed that BIMSTEC holds strategic significance for India in the Indo-Pacific region, offering a platform to enhance regional cooperation, strengthen maritime security, and promote a rules-based economic order.

India’s active engagement in the grouping, it said, reflects its efforts to counter external influences while reinforcing regional leadership.

Highlighting the grouping’s growing relevance, the Daily Mirror report stated, “As the global economic landscape continues to shift, BIMSTEC can serve as a model for inclusive and resilient regionalism. By unlocking its full potential, India and its partners can not only promote regional growth but also help create a more balanced and interconnected global economy.”