RIS StudyTransforming Connectivity

Corridors between India and Myanmar

into Development Corridors

Contents

Chapters1. Introduction2. Connectivity corridors under development3. Promoting Border Trade through

connectivity corridors4. Connectivity corridors transforming into

development corridors

Chapter 1 - Introduction

Importance of connectivity for North East India, towards implementation of Vision 2020 and Look East Policy.Transition underway in Myanmar and

Economic Development.India-Myanmar Trade and Investment.India-Myanmar Development Cooperation

projects

Chapter 1 – Introduction (contd.)

Methodologya) Desk Researchb) Interaction with Ministries, Trade and Industry

Associationsc) Three visits to North East Indiad) Two visits to Myanmar – during one of these a Seminar on the subject was also held in Nay Pyi Taw and a visit to Kaladan project. e) A visit to Myanmar-china border (Muse/Jiagao) to study how border trade was conducted there.

Chapter 2 – Connectivity Corridors under development

1. Road Connectivityi) Road connectivity through Moreh (Manipur State) – Tamu (Sagaing Region) ii) Road connectivity through Rhi (Mizoram State) –Zokhawthar (Chin State)

2. Railway Connectivity (Through Moreh-Tamu) 3. Inland waterway and Multi Modal Connectivity

(Kaladan project)

Possible Time Lines for Road, Rail and Multi Modal Connectivity

1. Completion of Trilateral highway by 2016/20172. Completion of Kaladan project including all

road construction and infrastructure forcontainer transportation by 2016/2017

3. Completion of the Rhi-Tiddim Road and allinland connectivity both in India and withinMyanmar by 2019

4. Completion of railway Connectivity upto Imphalby 2018 and to Moreh in India and to Kalay inMyanmar by 2022

Chapter 3 – Promoting Border Trade

Border Trade Designated Pointsi) Moreh in Manipur State in India and

Tamu in Myanmar (formally opened on 12 April 1995)

ii) Champhai in Mizoram State in India and Rhi in Myanmar (ICS began functioning on 14.9.2007

iii) Pangsau Pass (Nampong) in Changlang District in Arunachal Pradesh – Border Haat

Nature of Border Trade at Moreh

1. Officially recorded annual border trade Rs. 37.9 crores as per CBEC figures and Rs. 233 crores as per Myanmar figures in 2012-13.

2. Estimates of informal trade rangebetween Rs. 1000 crores and Rs. 3500crores at Moreh and the figures couldbe around Rs. 500 crores forRhi/Zokhawthar post.

India-Myanmar Friendship Roadnear Gate No. 1

Gate No. 2 on the Moreh/Tamu Border

Some goods on display at Namphalong Market

Some goods on display at Namphalong Market

Zokhawthar Border

Food items in Mizoram Shops

Food items in Mizoram Shops

China-Myanmar Border Trade: Case Study A view of 105 mile Trade Zone

Imperative to re-engineer trade through border – Several recommendations in the report

in Sections 3.5, 3.6. 3.7

i) Informal trade needs correction at theearliest – RBI circular on barter trade needsrevision.

ii) Seek to move towards Rupee based trade.iii) Trade has to be facilitated and transaction

costs reduced. No one to emerge loser.Make it easy for traders to accept andadapt to formal trade practices. Capacitybuilding essential.

(continued)

Imperative to re-engineer trade through border –Several recommendations in the report in Sections 3.5, 3.6. 3.7 (Continued)

iv) Promoting two way agricultural tradev) Efficient Banking facilitiesvi) Regulation of Transportationvii)Effective monitoring and controlviii)ICP at Moreh to be established soonestix) Local governance at border townsx) Transit arrangements

Chapter 4 – Transforming Connectivity Corridors into Development Corridors

Opportunities on the Indian side of the border in Manipuri) Infrastructure Development – Power, Communications

and ITii) Agriculture and food processingiii) Handicrafts, handlooms and other small scale

industriesiv) Manufacturing industriesv) Services sector

Initiatives mooted: Moreh Township Project and aMulti product SEZ at Thoubal

Connectivity Corridors into Development Corridors

Opportunities on the Myanmar side in Sagaing Region

i) Industry – Cement, copper based industries, locomotive factory, Ferro Chrome Steel plant and rolling steel mills textile sector

ii) Rice mill / oil mill machineryiii) Timber based industriesiv) Agro and food processing industryv) Build their presence further – Indian tractor

and agro machinery companies

Trade and Investment Opportunities in Mizoram

i) Horticulture, Spice, Sericulture based industries

ii) Bamboo based industriesiii) Higher education services and ITiv) Oil exploration between Aizawl and

Champhai in Mizoram

Trade and Investment opportunities in Myanmar side of Kaladan Corridor

i) Contract farming and fisheries

ii) Development of Ponnar Kyun industrial zone

iii) Development of Kyaukphyu SEZ

Need for an Overall Strategy1. Need for an Overall Strategy2. Strategy To ensure timely completion of all

connectivity projects. Re-engineer Border Trade Capacity building and skill development Infrastructure development SEZ and Industrial Zones to promote

trade and investment

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