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2.3. 20 YEARS OF BIMSTEC
The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) celebrates its 20th
anniversary on June 06, 2017.
About BIMSTEC
BIMSTEC or Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation was formed nearly
two decades ago, in June 06, 1997.
The BIMSTEC comprises India, Bangladesh, Bhutan, Myanmar, Nepal, Sri Lanka, and Thailand.
The permanent secretariat of BIMSTEC was established in Dhaka in 2014.
It was originally called BIST-EC (Bangladesh, India, Sri Lanka, and Thailand - Economic Cooperation) and was
formed at a meeting in June 1997 in Bangkok.
Myanmar was admitted in December 1997 and the organisation was renamed as BIMST-EC.
The grouping expanded when Nepal and Bhutan were admitted in February 2004.
The grouping’s name was changed to BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and
Economic Cooperation) at Bangkok in July 2004”.
The BIMSTEC region is home to around 1.5 billion people which constitute around 22% of the global
population.
BIMSTEC is a sector-driven cooperative organization, starting with six sectors—including trade, technology,
energy, transport, tourism and fisheries.
It expanded to embrace eight more sectors—including agriculture, public health, poverty alleviation,
counter-terrorism, environment, culture, people to people contact and climate change—in 2008.
Importance of BIMSTEC for India
India is a founder-member of BIMSTEC. India has been clearly signaling its renewed interest in BIMSTEC. With
the South Asian Association for Regional Cooperation (SAARC) faltering badly due to Pakistan’s support to cross-
border terrorism, India seems to be giving prominence to BIMSTEC.
BIMSTEC, in fact, is a bridge between South Asia and Southeast Asia, and India is the prime mover behind
the recent moves on this regional grouping.
The other advantage is that it would give impetus to India's domestic goal of developing the northeastern
region, which is the country's geographical gateway to the East and South-East Asia.
The ongoing India-Myanmar-Thailand Trilateral Highway and the India-Myanmar Kaladan Multimodal
Transit Transport Project are expected to further augment connectivity and economic cooperation in the
India is keen for a Motor Vehicle Agreement between India, Myanmar and Thailand, as has been forged by
Bangladesh, Bhutan, India and Nepal (BBIN) and signed in June 2015.Such an agreement will facilitate the
movement of goods, services and people between these countries and boost productivity and trade.
India is already the lead country for four priority sectors, namely, transportation and communication,
environment and disaster management, tourism, and counter-terrorism and trans-national crime.
BIMSTEC indeed has huge potential to emerge as a grouping that can accelerate the process of regional
integration, security cooperation, and inclusive growth in this region.
In the last five years, BIMSTEC member states have been able to sustain an average 6.5% economic growth
trajectory despite global financial meltdown.
The free trade agreement being negotiated by the seven-nation will help in elimination of non-tariff
measures and give a big push to trade in the region.
The BIMSTEC region has a huge amount of untapped natural, water, and human resources, from
hydropower potential in the Himalayan basin to hydrocarbons in the Bay of Bengal.
BIMSTEC, unlike SAARC, is an “issue-free relationship” where all countries are looking for cooperation in
development processes. Also unlike SAARC, BIMSTEC has no written charter and thus more flexible.
Potential of BIMSTEC
Energising it would also accelerate India's Act East policy.
sub-region and beyond.