UPSC CURRENT AFFAIRS – 05th April 2025
India at 6th BIMSTEC Summit: Reinforces Role in Regional Cooperation
Why in News?
- At the 6th BIMSTEC Summit held in Bangkok in April 2025, India unveiled a broad set of initiatives to enhance cooperation across digital infrastructure, energy connectivity, trade in local currencies, maritime security, and human development.
- These initiatives reflect India’s deepening commitment to regionalism in the Bay of Bengal region, especially through multilateral platforms like BIMSTEC, in contrast to the limitations faced by SAARC.
Historical Background of BIMSTEC
- BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) was established in 1997, originally as BIST-EC, comprising Bangladesh, India, Sri Lanka, and Thailand.
- It was renamed BIMST-EC with the inclusion of Myanmar in 1997, and later became BIMSTEC with the entry of Nepal and Bhutan in 2004.
- The grouping connects South Asia and Southeast Asia, and its focus areas include trade, connectivity, energy, environment, disaster management, public health, and agriculture.
India–BIMSTEC Relations
- India has played a leading role in revitalising BIMSTEC, particularly after the suspension of SAARC activities post-2016 due to geopolitical tensions.
- India sees BIMSTEC as a vehicle to:
- Advance its Neighbourhood First and Act East policies.
- Promote regional integration and connectivity in the Bay of Bengal.
- Counterbalance China’s maritime and infrastructure presence in the Indian Ocean Region (IOR).
- Over the years, India has hosted and supported numerous BIMSTEC meetings, contributed significantly to institutional reforms, and pushed for charter finalisation, which came into force in 2024.
Key Initiatives Announced at the 6th BIMSTEC Summit
- Digital and Financial Connectivity
- India proposed the interlinking of its Unified Payments Interface (UPI) with the payment systems of other BIMSTEC nations to boost cross-border trade and tourism.
- A feasibility study for local currency trade among member states was proposed to reduce reliance on external currencies.
- Energy and Infrastructure
- Accelerated work was proposed on regional electricity grid interconnection to facilitate power trade.
- Plans to set up a BIMSTEC Energy Centre and develop clean energy cooperation were discussed.
- Maritime Security and Transport
- India proposed a Sustainable Maritime Transport Centre to coordinate maritime policy, capacity building, and security cooperation in the Bay of Bengal.
- Disaster Management and Climate Resilience
- Proposal to establish a BIMSTEC Centre of Excellence for Disaster Management in India.
- India will host the fourth BIMSTEC disaster management joint exercise later this year.
- Public Health and Traditional Medicine
- India committed to training cancer care professionals and proposed a Centre of Excellence for Traditional Medicine for regional cooperation.
- Agriculture and Knowledge Exchange
- A Centre of Excellence in Agriculture was proposed to support capacity-building, knowledge sharing, and innovation in the farming sector.
- Trade and Industry
- Establishment of a BIMSTEC Chamber of Commerce and an annual Business Summit to enhance private sector engagement.
- Space and Education Cooperation
- Proposed satellite ground stations, nano-satellite development, and remote sensing data sharing.
- Expansion of scholarships at Indian institutions and annual training for young diplomats from BIMSTEC countries.
- Youth, Sports, and Culture
- Launch of the BODHI initiative for skill development (training 300 BIMSTEC youth annually).
- Hosting of a Traditional Music Festival, Young Leaders Summit, and BIMSTEC Hackathon.
- India will also host the BIMSTEC Athletics Meet in 2025 and the first BIMSTEC Games in 2027 to mark the group’s 30th anniversary.
Challenges Facing BIMSTEC
- Inconsistent political will and slow implementation of decisions have hindered momentum.
- Resource constraints and lack of a permanent secretariat with strong capacity affect operational efficiency.
- Security concerns, especially regarding China’s rising influence in Myanmar and Sri Lanka, require a delicate balance among members.
- Differing development levels and priorities across member states make consensus-building complex.
BIMSTEC vs SAARC: A Comparison
|
Aspect |
BIMSTEC |
SAARC |
|
Established |
1997 |
1985 |
|
Members |
7 (Excludes Pakistan) |
8 (Includes Pakistan) |
|
Focus Areas |
Connectivity, trade, energy, security |
Broad, but mostly economic and social |
|
India’s Role |
Proactive and leading |
Stalled due to tensions with Pakistan |
|
Meetings Held |
Increasing post-2016 |
Inactive since 2014 summit |
|
Geo-focus |
Bay of Bengal – South & Southeast Asia |
South Asia only |
|
Effectiveness |
Growing relevance |
Largely dormant |
India views BIMSTEC as a more action-oriented alternative to SAARC, free from political gridlock.
Significance
- The summit reflected India’s strategic focus on functional regionalism, maritime cooperation, and digital integration.
- Through BIMSTEC, India aims to build a secure, connected, and prosperous Bay of Bengal region, reinforcing its role as a net security provider and development partner.
- India’s proposals signal an effort to institutionalise BIMSTEC mechanisms, make it a platform for inclusive growth, and ensure that connectivity is holistic – physical, digital, energy, and cultural.
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