IAS Gyan

Daily News Analysis


19th July, 2023 International Relations

Disclaimer: Copyright infringement not intended.


  • The first-ever Foreign Ministers’ meeting of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) began in Bangkok, Thailand, on July 17.



  • The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is a regional organization comprising seven member countries around the Bay of Bengal.
  • Established in 1997 with the signing of the Bangkok Declaration, BIMSTEC aims to promote cooperation and economic integration among its member states. In recent years, the grouping has gained significance, with India actively supporting its growth and development.

Background and Membership

  • BIMSTEC was initially known as BIST-EC, involving Bangladesh, India, Sri Lanka, and Thailand. Myanmar joined later in 1997, and Bhutan and Nepal became members in 2004.
  • The region covered by BIMSTEC is home to around 22% of the world's population, with a combined GDP of approximately $2.7 trillion.
  • The organization's initial focus was on six sectors: trade, technology, energy, transport, tourism, and fisheries, but it has expanded to other areas over the years.

India's Push and Strategic Importance

  • India played a crucial role in reinvigorating BIMSTEC in 2016, organizing an outreach summit with leaders of member countries during the BRICS summit in Goa.
  • The region holds strategic significance for India, as it connects South and Southeast Asia, aligning with India's 'Act East' policy.
  • BIMSTEC offers India an opportunity to strengthen its presence in the Bay of Bengal region and counter China's growing assertiveness in the Indian Ocean.

Regional Cooperation and Benefits

  • BIMSTEC facilitates greater cooperation and integration among member countries, fostering economic growth and development.
  • It provides a platform for countries like Bangladesh and Sri Lanka to enhance their regional standing and connectivity with Southeast Asia.
  • For Nepal and Bhutan, BIMSTEC offers a gateway to the Bay of Bengal region, reducing their landlocked geographic constraints.
  • BIMSTEC allows India to pursue its 'Neighbourhood First' policy and collaborate with member countries on shared values and goals.

India-China Dynamics

  • China's increasing influence in the region through its Belt and Road Initiative (BRI) has heightened India's interest in BIMSTEC.
  • BIMSTEC serves as a battleground for India-China rivalry, with India aiming to counter Chinese investments and promote best practices for connectivity projects.
  • India can showcase the Bay of Bengal as a zone of peace, emphasizing the importance of freedom of navigation and adherence to international norms, in contrast to China's assertiveness in the South China Sea.

Positive Aspects of BIMSTEC

  • Regional Integration: BIMSTEC connects South Asia with Southeast Asia, providing an opportunity for economic and cultural exchanges, and strengthening regional integration.
    • Example: India's 'Act East Policy' aligns with BIMSTEC's objective of enhancing connectivity and economic engagement with Southeast Asian countries, opening new trade routes and investment opportunities.
  • Geopolitical Importance: The Bay of Bengal region holds strategic significance due to its proximity to major shipping lanes and natural resources, making BIMSTEC relevant in the global geopolitical landscape.
    • Example: The presence of major ports in member countries, such as Chittagong in Bangladesh and Colombo in Sri Lanka, enhances the region's maritime importance and attracts international trade and investments.
  • Diverse Membership: The inclusion of countries with varying levels of economic development and geographic locations allows for a comprehensive approach to addressing regional challenges.
    • Example: Countries like India and Thailand contribute their economic strength and expertise, while landlocked nations like Nepal and Bhutan benefit from connectivity and access to coastal markets.
  • Focus on Development: BIMSTEC's focus on sectors such as trade, technology, energy, transport, tourism, and fisheries aligns with the development priorities of member states.
    • Example: BIMSTEC's Master Plan for Transport Connectivity aims to improve road, rail, and maritime connectivity within the region, facilitating the movement of goods and people.

Challenges Faced by BIMSTEC

  • Limited Progress: Despite being in existence for over two decades, BIMSTEC has made limited progress in achieving its objectives, with slow implementation of agreements and projects.
    • Example: The BIMSTEC Free Trade Area, proposed in 2004, is yet to be fully realized due to various trade barriers and differences in tariff reductions among member countries.
  • Political Differences: The diverse political systems and priorities of member countries can hinder effective decision-making and cooperation within the organization.
    • Example: Ongoing political tensions between some member countries, such as India and Pakistan, may impact the overall effectiveness of the organization in addressing regional challenges.
  • Security Concerns: The Bay of Bengal region faces security challenges, including piracy, maritime disputes, and transnational crime, which require collective efforts to address effectively.
    • Example: The region's vulnerability to piracy in the Malacca Strait calls for coordinated maritime security measures to ensure safe passage for trade and commerce.
  • China's Influence: China's growing economic and strategic influence in the region through initiatives like the Belt and Road Initiative can impact the dynamics within BIMSTEC.
    • Example: China's investments in major infrastructure projects in Bangladesh and Sri Lanka have raised concerns among other member countries about possible geopolitical implications.

Way Forward for BIMSTEC

  • Enhanced Cooperation: Member states need to strengthen cooperation in key areas such as trade, connectivity, and disaster management to realize the full potential of BIMSTEC. Example: Streamlining customs procedures and reducing non-tariff barriers can facilitate intra-regional trade and investment, boosting economic growth.
  • Inclusive Approach: BIMSTEC should adopt an inclusive approach that accommodates the interests of all member countries and prioritizes equitable development. Example: Developing capacity-building programs for less-developed countries can help them participate actively in regional initiatives and benefit from economic integration.
  • Focused Action Plans: Clear action plans and timelines for project implementation will help overcome the slow progress and ensure the effective utilization of resources. Example: Establishing a dedicated BIMSTEC Secretariat to coordinate and monitor projects can enhance efficiency and accountability in the organization.
  • Engagement with External Partners: BIMSTEC should engage with external partners, including China and ASEAN, to leverage resources and expertise for sustainable development. Example: Collaborating with ASEAN in areas of mutual interest, such as disaster management and climate change adaptation, can enhance regional resilience.
  • Revival of SAARC-BIMSTEC Synergy: Synergy between SAARC and BIMSTEC can promote regional stability and enhance collective efforts in addressing common challenges. Example: Leveraging the strengths of both organizations in areas like food security and cultural exchanges can create greater regional cohesion and understanding.


BIMSTEC's growth and significance have increased in recent years, with India actively promoting regional cooperation and strategic alliances. The organization's potential to foster economic development, address security challenges, and provide a platform for peace and cooperation make it a critical component of India's foreign policy priorities. As India continues to engage with BIMSTEC, it will play a vital role in shaping regional dynamics and promoting a stable and prosperous Bay of Bengal region.

Must Read Articles:



Q. As India continues to engage with BIMSTEC, it will play a vital role in shaping regional dynamics and promoting a stable and prosperous Bay of Bengal region. Critically analyse. (250 words)