FTA, investment promotion, connectivity are key to greater BIMSTEC cooperation: CII BIMSTEC Business Summit

While the proposed BIMSTEC Free Trade Agreement (FTA) is key to boost trade, investment promotion is another priority area to ensure greater intra-regional trade and establishment of regional value chains, said Mr Indra Mani Pandey, Secretary General, BIMSTEC Secretariat at the Valedictory Session of the two-day CII BIMSTEC Business Summit 2024.

Mr Pandey said the idea of holding an annual BIMSTEC Business Summit and the proposal to set up a BIMSTEC Industry Chamber have given a great beginning to a new phase of enhanced business relationships.

The business community has an important role to play in all these areas including strengthening connectivity, promoting human resources development, ensuring technology collaborations and energy security, Mr Pandey said.

Speaking on the occasion, Amb P Kumaran, Special Secretary [ER & DPA], Ministry of External Affairs, Government of India said there is a renewed commitment among BIMSTEC member countries for an early conclusion of BIMSTEC FTA. Efforts are also on to speed up the  Kaladan Multi-Modal Transit Transport Project and the India–Myanmar–Thailand trilateral Highway.

He identified agriculture, linking of payment systems, development of resilient supply chains, harmonisation of customs procedures, connectivity including physical, digital, people-to-people, and energy connectivity as areas that have the potential for greater collaboration.

Amb Kumar said setting up regional Centre of Excellence for MSMEs, finalisation of BIMSTEC energy grid, geospatial technologies, mountain economy, blue economy, tourism, mining and petroleum exploration, strengthening maritime security, disaster management, traditional knowledge, and combating piracy are other aspects that will get greater attention, along with cooperation in SEZs, financial markets, payments, digital commerce, undersea data cables, regional data centres, and developing regional markets for renewable energy trade.

Mr Sanjiv Puri, President, Confederation of Indian Industry (CII) said expediting the conclusion of the BIMSTEC FTA negotiations is pivotal to boost trade in goods and services and integrating MSMEs. Commitment from the business community and political community will be evident in this regard. FTA will also enhance trust and integrate regional value chains.

Logistics, tourism, and digital technology are areas that BIMSTEC countries can enhance cooperation, Mr. Puri said. Rail, road, sea, and air connectivity can operationalise the FTA. Long-term financing options including viability gap funding, green bonds and infrastructure investment trusts can help improve infrastructure financing.

Mr Chandrajit Banerjee, Director General, CII said BIMSTEC Business Summit will be an annual event from now on, adding that the BIMSTEC industry chamber will soon be launched with participation from each of the member nations.

Businesses from the BIMSTEC member countries are looking at ways to enhance cooperation in biotech and nanotech, mainstreaming MSMEs, women-led development, and services sector, as well as promoting sustainability and climate adaptation.

7 August 2024

New Delhi