THE INDIA-MYANMAR JOINT TRADE TO ATTAIN THE TURNOVER OF US $1 BILLION IN THE NEXT THREE YEARS THROUGH THE EXPANSION AND DIVERSIFICATION OF TRADE – SHEKHAWAT

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Vice President Shri Bhairon Singh Shekhawat has said that trade, including border trade, is a vital component of the relationship. Even though bilateral trade turnover has grown over four-fold during the preceding decade to about half billion-dollar mark, it is clearly not commensurate with existing potentialities. The India-Myanmar Joint Trade Committee has proposed to raise the turnover to US $1 billion in the next three years through the expansion and diversification of trade. The Vice President was addressing the luncheon meeting hosted by Union of Myanmar Federation of Chambers of Commerce and Industry today at Yangoon in Myanmar. He further said that this is a challenging but feasible target. While the Committee will focus on removing impediments and providing an appropriate framework at the policy level, a dynamic private sector, apex chambers of Commerce such as yours, and captains of industry present here will achieve the target. Following is the full text of the address:

"At the outset, I would like to express my warm appreciation to U Win Myint and other members of the Chamber for inviting my delegation and me to this luncheon meeting. It gives us a valuable opportunity to interact with the captains of business and industry of Myanmar. I am deeply touched by your warm welcome and the reception extended to me and my delegation.

Myanmar and India share a unique relationship. We are bound by strong religious, cultural and ethnic affinities, which go back two millennia. My visit to Shwedagon Pagoda brought into sharp focus our common heritage bequeathed by Lord Buddha which represents an everlasting bond between our peoples. My visit to your enchanting country aptly called 'The Golden Land', is an expression of the continuing goodwill and friendship between our two countries and people. It is making a deep imprint on all of us.

Trade, including border trade, is a vital component of the relationship. Even though bilateral trade turnover has grown over four fold during the preceding decade to about half billion dollar mark, it is clearly not commensurate with existing potentialities. The India-Myanmar Joint Trade Committee has proposed to raise the turnover to US$ 1 billion in the next three years through the expansion and diversification of trade. This is a challenging but feasible target. While the Committee will focus on removing impediments and providing an appropriate framework at the policy level, a dynamic private sector, apex Chambers of Commerce such as yours, and captains of industry present here will achieve the target.

The Tamu-Kalay road is a symbol of our joint endeavours. Implementation of other joint projects is underway. IT and telecommunications, hydrocarbons, light engineering goods, pharmaceuticals and food processing are areas of promise. Collaboration in science and technology is also important from the long-term perspective. HRD has become a critical factor in economic development and it is gratifying to note that this is already a major field of cooperation between our two countries. To my mind, tourism is another area of economic activity that should be of common interest as it is through tourism that peoples of our two countries can learn more about each other, create better understanding and mutual appreciation.

Encouraging developments have already taken place this year: in July, a large number of Myanmar businessmen participated in the Jewellery Fair in Mumbai and our Commerce and Industry Minister visited Yangon; in August, a delegation led by our Minister of IT and Communications had fruitful discussions with their counterparts in Myanmar. I am particularly glad that the Government of Myanmar has accepted the proposal by the Confederation of Indian Industry to hold the 'Made in India' Show in Yangon in February 2004. This will provide an excellent forum for interaction between Indian and Myanmar businessmen.

Friends, we were delighted that Brig-Gen Pyi Sone participated in the Second India-ASEAN Business Summit. Myanmar is India's gateway to ASEAN as it is the only ASEAN country with which India shares a land border. Therefore, it has its own special place in India's 'Look East' policy. After becoming a sectoral dialogue partner of ASEAN in 1992, a full dialogue partner in 1995 and a member of the ASEAN regional forum in 1996, the signing of the Free Trade Agreement between India and ASEAN at Bali last month was a watershed in this growing relationship.

Although trade between India and ASEAN has grown from US$ 3.5 billion in 1991 to US$ 12.1 billion in 2002, it is far below the potential. Diversification of the trade basket, the direction of trade and more effective utilization of existing opportunities will undoubtedly help to increase the India-ASEAN trade turn over. Indian industry is already working towards these goals. We are, at the same time, looking at measures to improve physical connectivity. The Myanmar-India-Thailand trilateral highway is one such effort. Bangladesh-India-Myanmar-Sri Lanka-Thailand Economic Cooperation and the Mekong-Ganga Cooperation also cover wide ranging opportunities for mutually beneficial collaboration at the sub-regional levels.

A climate of peace and tranquility is an essential pre-requisite to trade and economic cooperation. Incidents of bombing in Bali, Jakarta and Mumbai require us to fight the menace of terrorism together. Terrorism has assumed a trans-national character. It has become increasingly clear that we have to pool our resources and efforts to curb and eliminate this dangerous phenomenon in all its manifestations.

India's economic fundamentals have always been strong; the economy has remained stable. Investments made during the last five decades have begun to show effect and our reform process is on course. The Indian economy is among the top ten economies in the world. Confidence and optimism characterize the economic mood in my country. We expect more than 6-7% economic growth this year; our target for the next five years is 8%. Our foreign exchange reserves stand over US$ 90 billion, moving rapidly to the 100 billion dollar mark. India's success in IT and software is too well known to be retold; our software exports amounting to US$ 10 billion speak for themselves. Industry too is showing good, positive results. Biotechnology, medical care, financial services and telecommunications are areas full of promise. We have developed indigenous capabilities of a high order in atomic energy, space and oceanographic studies.

Yet, rural India remains, as in Myanmar, the backbone of the country. It has been my belief that issues relating to rural development, including poverty alleviation, literacy and empowerment, require resolution if speedy economic growth is to be attained and sustained. India has not only achieved self-sufficiency in food but has also emerged as an exporter of agricultural products. The White Revolution has made us the largest milk producer in the world. This is a tribute to the toiling millions of our farmers in the countryside. Agriculture and rural development can also constitute fields of our mutual interest, benefit and cooperation.

Our vision of India in 2020 is of a developed nation. We recognize that we cannot rest on our past achievements; we still have a long way to go. However, we are proud of our people for what they have achieved, at times in the face of over-whelming odds.

Friends, let me stress once again that it is a matter of satisfaction that bilateral ties between our two countries have become wide ranging. Our common interest in the further development of relations was under-scored in my discussions with Myanmar's leadership. We would be happy to share our expertise and experience to promote Myanmar's economic development and the well-being of its people. Above all, we look forward to greater depth in our economic and business relations in the years ahead.

Thank you, Namaskar & Minglaba".