India’s Cross Border Trade With Myanmar

EconomyIndia’s Cross Border Trade With Myanmar

India shares its 10.88 % (1643km) international border with Myanmar, all through Arunachal Pradesh, Manipur, Mizoram, Nagaland both countries signed border trade agreement on 21th January 1994 to formalize border trade practices which came into effect on 12th April 1995. Under this agreement, border trade between two countries is permitted for 62 Identified items at a concessional duty of five percent. The agreement mentioned that trade between two countries should be routed through designed custom post only. For this purpose two such post have been identified (A) Moreh (Indian Manipur state) and Tamu (Myanmar) (B) Zokhawthar (Champhai) Indian Mizoram state and Rhi (Hri) in Myanmar.Presently, there are four LCS on international border between two countries. Out of which Zokhawthar- Rhi(Tiddim) and Moreh – Tamu are fully functional where as Nampong – Pangsu is opened for border trade on15th and 30th day of every month.

Avangkhu – Somra LCS is bilaterally agreed but not yet notified. It is worth mentioning that road from Nampong to Pangsu is in extremely poor condition and not available for vehicular traffic during summer time.A new LCS is proposed at zorinpui (Lawngtlai) in Mizoram on Indo-Myanmar border under Kaladam Multi-model project.

Land Custom Station with Myanmar:

Mizoram shares long and porous International border with Myanmar. People of similar ethnicity in habiting the border areas on both sides of the international divide continue to sustain their requirement through conducting mutually beneficial trade.

Mizoram has two notified Land Custom Stations at Zokhawthar (Champhai) and Tiabung which are non functional, Zokhawthar LCS has been provided with a composite Land Custom Station building and other requirement for operationalization of border trade transactions in the agreed 40 items of trade. The traditional trade route over Chhimtuipui – Kolodyne/ Kaladan) which like still we port in Myanmar is alsoproposed to be developed through the kaladan Multi-model transport project.

Manipur share its international with Myanmar the integrated check post at the Moreh border with Myanmar doing operations. The construction of both the passenger and cargo terminal is over the facility may be handed over to the land port authority of India in the next couple of week. However, formal trade may take sometimes to kick off as the informal trade rules the roost due to vested interested on either side and the lack of allied infrastructure to ensure modern freight movement. While India created infrastructural for trade there is no such facility in Tamu on the other side of the border. The political will of Myanmar in promoting formal trade is questionable . India’s Govt. sponsored the construction of a bridge across river menal, that divides the two nations here to help cargo trucks from Myanmar enter directly into the ICP by passing the narrow friendship bridge. The bridge was part of the 69 Bridges that India will be Constructive along with trilateral highway connectivity India with Thailand Via Myanmar. The project is in limbo due to issues with the contractor. The widening of the Imphal – Moreh highway and construction of the moreh bypass is delayed due to land issues. Assam Rifles which guards Indo-Myanmar border has stepped up the heat on the informal trade. Moreh border recorded near Zero formal trade last fiscal as against an estimated Rs 1000-2000 crore informal trade. Things are marginally better this fiscal as the ICP received 2-3 trucks of betel nut import consignment a month. There were no export from India. The authorities are focusing on passenger movement synchronized bus services are planned to be lunched soon to ensure smooth travel between Imphal (Manipur) and Mandalay (Myanmar).

India-Myanmar

Principal Export to Myanmar: Brewery machinery, Fabrics, Tyres, Ball point pen, Human hair, Tobacco, other medicament containing vitamins, other part of aero plane, T- shirt of cotton.

Principal Import to Myanmar: Pigeon peas, Wilczek Dried and shld, Other Tropical Wood, Cow Peas, Betel Nuts, Chickpeas dried and shld, Areca Nuts, Turmeric, Human hair, other Frozen Fish, Antimony ores and Concnrts, Lentils (Mosur), Other Plywood, Other wood in Rough.

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