BIMSTEC at a Crossroads: Can India Drive the Change ?

N4S:

UPSC has asked questions from  themes like BIMSTEC by linking old groupings like SAARC with emerging ones like BIMSTEC. The 2022 question on BIMSTEC vs SAARC is a perfect example. The challenge for aspirants is not the lack of facts—it’s the struggle to connect headlines with deeper foreign policy themes. They remember the Bangkok Vision 2030 or India’s push for maritime links, but they miss the underlying issues like how India’s dominance creates discomfort (see: “India-Centric Perception”) or how BIMSTEC is now trying to fill the void SAARC couldn’t (see: “Overcoming SAARC’s Limitations”).

This article helps you connect the dots. It doesn’t just tell you what happened at the Summit—it shows you why it matters. For example, when it explains how the “BIMSTEC FTA remains stalled despite decades of negotiation,” it reminds you to think about implementation failure—a key theme in UPSC.

The best part? It ties everything back to the syllabus without sounding robotic. Topics like “Human Capital” and “Strategic Role in the Indo-Pacific” aren’t left floating. They’re linked with India’s larger goals, like the Act East policy or Neighbourhood First, and brought down to examples you can actually remember (like “BODHI” training or the Andaman & Nicobar maritime plan).

This article helps you understand BIMSTEC not just as a regional grouping but as a reflection of India’s evolving foreign policy. UPSC often frames questions by comparing older frameworks like SAARC with newer ones like BIMSTEC, as seen in the 2022 paper. The challenge is not recalling facts like the Bangkok Vision 2030 or maritime goals, but connecting them to deeper issues such as India’s dominant role or BIMSTEC’s effort to succeed where SAARC failed.

This article does that clearly. It explains why the stalled BIMSTEC FTA matters and highlights key syllabus themes like human capital and Indo-Pacific strategy. It links them to policies like Act East and Neighbourhood First through real examples like BODHI training and the Andaman maritime plan.

PYQ ANCHORING

  1. GS 2: 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]

MICROTHEME: Groupings involving Immediate and Extended neighbours

“The world is watching Asia, and BIMSTEC must step up to the challenge.”

This quote from Indian Prime Minister Narendra Modi reflects the rising importance of regional cooperation in Asia. At the 6th BIMSTEC Summit, India took the lead with bold plans like the Bangkok Vision 2030, aiming to make the region more connected and prosperous. The focus was on things like improving maritime shipping and digital payments, plus setting up centers for skill development and disaster management.

India’s push includes a variety of initiatives in trade, security, and culture—but BIMSTEC still faces major challenges. The group has struggled with weak trade ties, political disagreements, and China’s influence.

So, where does BIMSTEC go from here? Can the Summit really make a difference? Is India’s leadership inclusive or too focused on its own interests?Can BIMSTEC fill the gaps left by SAARC and work alongside ASEAN?

6th BIMSTEC Summit: Highlights & India’s Lead

Key Outcomes

  • Bangkok Vision 2030: Push for a prosperous, resilient, and open BIMSTEC by 2030.
  • Maritime Transport Pact: Boosts regional shipping links and cuts trade costs.

India-Led Initiatives

AreaInitiatives
Human CapitalBODHI: Skill training at Nalanda University & Forest Research Institute
Institution BuildingCentres of Excellence on disaster mgmt, maritime transport, medicine & farming
Trade & EconomyStudy on local currency trade; proposed BIMSTEC Chamber of Commerce
Security & SpaceIndia to host 1st Home Ministers’ Meet on cybercrime, terrorism, space ties
Culture & YouthYoung Leaders’ Summit, BIMSTEC Games (2027), Music Festival
Energy & InfraBIMSTEC Energy Centre (Bengaluru); proposal for regional electric grid
Digital FinancePilot on linking India’s UPI with BIMSTEC for inclusive digital payments

India’s Strategy to Reinvigorate BIMSTEC

Focus AreaIndia’s Approach
Stronger Regional TradeFast-tracking the BIMSTEC FTA and easing trade barriers.
Targeted DiplomacyDeepening ties with Thailand, Bangladesh, and Sri Lanka to build trust.
Leading by ExampleProposing visa relaxations and tariff cuts to boost tourism and trade.
Maritime GrowthDeveloping the Andaman & Nicobar Islands as a strategic hub.
Port & Regulation ReformModernizing eastern ports and standardizing maritime laws for better connectivity.

BIMSTEC: Filling the Gaps Left by SAARC and ASEAN


BIMSTEC was set up in 1997 to fill the gaps left by existing groups like SAARC and ASEAN. While these organizations were already active, BIMSTEC was seen as a fresh platform to connect South and Southeast Asia, tackling issues that go beyond regional borders. 

ReasonExplanationExample
Geographic ConnectivityConnects both South and Southeast Asia, focusing on the Bay of Bengal region.The India-Myanmar-Thailand Highway enhancing connectivity between India and Southeast Asia.
Overcoming SAARC’s LimitationsSAARC struggled with political tensions, especially between India and Pakistan.BIMSTEC excluded Pakistan, allowing for more focused cooperation among its members.
A Broader Economic FocusUnlike ASEAN, which primarily focused on economic growth, BIMSTEC also emphasizes social and technical cooperation.BIMSTEC’s focus on maritime cooperation and the energy sector, like the BIMSTEC Energy Centre in Bengaluru.
Strategic Role in the Indo-PacificBIMSTEC provides a platform for India to strengthen its influence in the Indo-Pacific.India’s ‘Act East’ policy aligns with BIMSTEC’s strategic role, especially in maritime security.
Environmental CollaborationBIMSTEC addresses regional environmental and disaster management concerns.BIMSTEC’s Disaster Management Exercises (DMEx) and regional climate resilience efforts.
Underdeveloped InfrastructureBIMSTEC’s focus on infrastructure projects like roads, ports, and energy is crucial for the region’s growth.Development of Sittwe Port in Myanmar and regional energy grid projects to boost connectivity.
Avoiding ASEAN’s OverextensionASEAN’s broader regional focus sometimes limits attention on specific South Asian issues, which BIMSTEC addresses.BIMSTEC’s tailored approach to regional challenges like cross-border terrorism and maritime security.

BIMSTEC was designed to address the gaps and specific needs that were not fully served by SAARC and ASEAN, offering a more focused, practical framework for regional cooperation.

BIMSTEC: Struggle to Take Off after a 25-Year Journey

BIMSTEC was meant to connect South and Southeast Asia—but 25+ years on, it’s mostly talk, not action. Weak structure, patchy political will, and shallow economic ties keep it from becoming a real force. Here’s a quick look at what’s holding it back, with real-world examples.

Issue AreaChallengeExamples / Specifics
1. Structural and Institutional Gaps
Lack of Permanent SecretariatBIMSTEC Secretariat was only established in 2014, 17 years after its formation in 1997.Even today, it remains under-resourced and lacks institutional memory compared to ASEAN’s Jakarta HQ.
Irregular Summits and MinisterialsInconsistent high-level engagement weakens policy follow-through.Only 5 summits in 26 years; the 5th Summit was held in 2022 after a 4-year gap.
Weak Legal FrameworkNo binding charter until 2022, limiting enforceability of decisions.BIMSTEC Charter adopted only recently; ASEAN had one by its 10th year.
2. Political and Strategic Disconnect
Varying Strategic InterestsMember countries prioritize different regional groupings.Thailand leans towards ASEAN; Sri Lanka and Bangladesh focus on SAARC and bilateral ties.
India-Centric PerceptionSeen as a tool for India’s strategic outreach, not a shared vision.India’s BBIN projects often bypass BIMSTEC frameworks, breeding scepticism among members.
China’s ShadowMembers are cautious due to Chinese economic influence.Myanmar and Thailand are deeply integrated into China’s Belt and Road Initiative.
3. Economic and Functional Weaknesses
Poor Trade IntegrationIntra-BIMSTEC trade is only ~7% of total trade among members.BIMSTEC FTA remains stalled despite decades of negotiation.
Lack of Connectivity ProjectsPhysical and digital connectivity remains fragmented.Kaladan project delayed for years; Motor Vehicle Agreement yet to be finalized.
Sectoral OverloadToo many sectors without prioritization dilutes focus.BIMSTEC expanded to 14 sectors; now trying to rationalize to 7 key sectors post-2022.

Influence of Non-Members on BIMSTEC Dynamics

  1. Geopolitical Competition: Countries like China and the US influence BIMSTEC indirectly by strengthening ties with member states through economic or military partnerships, creating a competitive environment. For example, China’s Belt and Road Initiative (BRI) has drawn countries like Sri Lanka and Myanmar into its orbit, potentially diverting focus from BIMSTEC’s regional cooperation agenda.
  2. Economic Partnerships: Non-member countries, especially from ASEAN and the West, often provide trade opportunities and investments that can overshadow BIMSTEC’s efforts. This can divert the region’s focus from intra-regional cooperation to external partnerships, as seen with India’s “Act East” policy aimed at increasing trade ties with ASEAN.
  3. Strategic Alliances: The presence of external powers in South Asia, particularly the US and China, often influences member states’ policies and alignment. For instance, India’s rivalry with China in the region impacts BIMSTEC’s ability to adopt a unified stance on security and economic issues, as member states might align with or be swayed by external powers’ interests.
  4. Soft Power: Countries like Japan and Australia, which are not part of BIMSTEC but engage with its members, often influence the bloc’s priorities through development assistance, technology transfer, and diplomatic support. Their involvement often shapes regional projects such as infrastructure development or disaster management efforts, impacting BIMSTEC’s project focus.
  5. Security Concerns: External powers with security interests in the region, like the US, influence BIMSTEC by pushing for enhanced counter-terrorism, maritime security, and cybersecurity collaboration, which can align with their broader strategic goals in the Indo-Pacific. This can shift BIMSTEC’s priorities toward these issues, sometimes at the cost of economic or social initiatives.

In essence, while BIMSTEC is designed to foster regional cooperation, external powers play a significant role in shaping its trajectory, sometimes pushing the bloc’s agenda toward broader geopolitical and economic interests.

Way Forward

  1. Leverage Regional Synergies: Harness the diverse resources of BIMSTEC members for optimal regional cooperation, fostering a stronger, more dynamic bloc.
  2. Diplomatic Engagement: Engage in sustained bilateral and multilateral dialogues to prevent political issues, like the Rohingya crisis, from hindering progress. India should maintain strong ties with Nepal, Sri Lanka, and Bangladesh to ensure stable relations.
  3. Myanmar’s Engagement: India and members must navigate Myanmar’s political instability cautiously until it stabilizes, ensuring balanced cooperation.
  4. Boost Connectivity: Focus on the FTA, coastal shipping, and electricity grid connectivity to drive regional trade. Securing timely project funding and implementation is essential.
  5. India’s Leadership: India must lead by offering funding and supporting initiatives like the Eminent Persons Group (EPG) to create a vision document, addressing power imbalances and facilitating trade.
  6. Future Areas of Focus: Expand focus to new areas like the blue economy, digital economy, and MSME collaborations to foster sustainable growth.

#BACK2BASICS: BIMSTEC

BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) was created in 1997 as a bridge between South and Southeast Asia—offering an alternative to SAARC, which has been paralyzed by regional rivalries (e.g., India-Pakistan tension). It connects countries around the Bay of Bengal to promote trade, security, and connectivity.


BIMSTEC at a Glance

AspectDetails
Established1997 via the Bangkok Declaration
Members7 – Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, Thailand
Core GoalRegional cooperation in trade, security, energy, and development

Why BIMSTEC Matters to India

AreaRelevance
Strategic LeverageStrengthens India’s Act East & Neighbourhood First policies (connects to ASEAN via Thailand & Myanmar)
Economic TiesPush for BIMSTEC FTA to boost trade and value chains (India is largest economy in group)
SecurityCooperation on terrorism, cyber threats, maritime safety (e.g., BIMSTEC DMEx drills)
Energy & ClimateBIMSTEC Energy Centre supports regional power grids and clean energy planning
Northeast AccessProjects like Sittwe Port and India-Myanmar-Thailand Highway ease Siliguri Corridor pressure
Geopolitical ReachExpands India’s Indo-Pacific influence without SAARC roadblocks

What’s Holding BIMSTEC back?

Challenge TypeProblemExample
StructuralWeak Secretariat, poor fundingSecretariat in Dhaka lacks teeth
Slow ExecutionKey deals like FTA & connectivity projects are stuckFTA talks drag on since 2004
Political VolatilityDomestic instability in members disrupts planningCoup in Myanmar, crisis in Sri Lanka
Split FocusSome members favour ASEAN, SAARC or bilateral ties over BIMSTECThailand leans towards ASEAN
Unequal OwnershipVarying commitment levels slow down collective momentumIndia leads, others often passive
Funding GapsLow financial contribution hampers implementation of big projectsFew large-scale infra projects completed

Why BIMSTEC is a Better Alternative to SAARC?

SAARC LimitationsBIMSTEC Advantages
India-Pakistan tensions hinder cooperation.Pakistan’s exclusion leads to no political deadlock.
Limited progress on connectivity.Projects like the BBIN Motor Vehicle Agreement and IMT Highway are active.
Minimal security cooperation.Enhanced security and maritime cooperation are promoted.
Insufficient trade integration.Working towards Free Trade Agreement, energy cooperation, and digital economy linkages.
No significant leadership initiative.India takes a proactive leadership role.

SMASH MAINS MOCK DROP

BIMSTEC as a regional grouping holds strategic and economic importance for South Asia and Southeast Asia. Analyze the challenges and opportunities faced by BIMSTEC in enhancing regional cooperation.

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