The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is a regional organization comprised of seven South Asian and Southeast Asian member states: Bangladesh, Bhutan, India, Nepal, Sri Lanka, Myanmar, and Thailand. BIMSTEC was founded on June 6, 1997, following the Bangkok Declaration, with the objective of driving economic integration and regional security cooperation among its members. The organization has recently made headlines with the commencement of its first-ever Foreign Ministers’ meeting in Bangkok, Thailand.
About BIMSTEC
Domiciled in Dhaka, Bangladesh, BIMSTEC operates through several institutional mechanisms including the BIMSTEC Summit Ministerial Meeting, Senior Officials’ Meeting, Working Group, and Business and Economic Forums. Since its inception in 1997, BIMSTEC has evolved from focusing on six sectors — trade, technology, energy, transport, tourism, and fisheries — to expanding its areas of interest in 2008. Following a reorganization in 2021, each member state now leads certain sectors, with India focusing on security, counterterrorism, transnational crime, disaster management, and energy.
The Global Significance of BIMSTEC
BIMSTEC’s member states currently make up about 22% of the global population and collectively generate a Gross Domestic Product (GDP) approximating USD 2.7 trillion. These countries have also demonstrated robust economic growth, with average annual rates between 3.4% and 7.5% from 2012 to 2016. Furthermore, BIMSTEC covers a strategic region, facilitating a fourth of the world’s traded goods each year.
Strategic Incentives for BIMSTEC Countries
BIMSTEC presents strategic advantages for its member countries. For instance, Bangladesh sees BIMSTEC as a platform to elevate beyond its current status, while Sri Lanka perceives it as an opportunity to connect with Southeast Asia and become a hub for the wider Indo-Pacific region. Landlocked countries such as Nepal and Bhutan aim to leverage BIMSTEC to gain access to the Bay of Bengal region. Simultaneously, Myanmar and Thailand view deeper affiliations with India and BIMSTEC as gateways to tap into India’s burgeoning consumer market, balance China’s influence, and create alternatives to China’s inroads into Southeast Asia.
India’s Perspective on BIMSTEC
For India, BIMSTEC serves as a natural platform to prioritize its foreign policy objectives of “Neighborhood First” and “Act East.” India’s call for boycotting SAARC summit in Islamabad received support from some BIMSTEC members, thereby highlighting the organization’s significance. India perceives BIMSTEC as not solely an economic integration mechanism, but also as a tool against an increasingly assertive China in maintaining its Indian Ocean access route.
BIMSTEC versus SAARC
Since its establishment in 1985 during the Cold War era, the South Asian Association for Regional Cooperation (SAARC) has been marked by mistrust, suspicion, and asymmetric power balance. In contrast, BIMSTEC, established in 1997 post-Cold War, is an interregional organization connecting South Asia and Southeast Asia, focusing on improvement of economic cooperation among countries. While intra-regional trade in SAARC stands at 5 percent, for BIMSTEC, it has increased around 6 percent in a decade.
The Way Forward for BIMSTEC
Future opportunities for BIMSTEC include deepening cooperation in various sectors, implementing existing agreements, and exploring new avenues for collaboration. The organization should focus on enhancing trade facilitation, reducing barriers, and promoting economic integration among member countries. It could also explore opportunities for a Free Trade Agreement (FTA) to boost regional trade and investment.
UPSC Civil Services Examination Previous Year Question (PYQ)
“Do you think that BIMSTEC is a parallel organisation like the SAARC? What are the similarities and dissimilarities between the two? How are Indian foreign policy objectives realized by forming this new organisation? (2022)”
Last Modified: February 22, 2024