The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Business Summit, held from 6-7 August 2024 in New Delhi, India, brought together prominent government officials, business leaders, and industry experts from the BIMSTEC member states. The summit served as a crucial platform for discussing key areas of economic and technical cooperation, focusing on accelerating regional integration and fostering mutual growth.
Key discussions
The summit highlighted several critical areas, with a primary focus on the operationalization of the BIMSTEC Free Trade Agreement (FTA). However, recognizing the immediate need for enhanced trade relations, participants discussed the possibility of establishing a Preferential Trade Agreement (PTA) as a precursor to the FTA. This initiative aims to boost intra-regional trade among the BIMSTEC countries, which collectively represent 22% of the global population but currently engage in trade worth only US$77 billion within the region.
In addition to trade facilitation, the summit emphasized the importance of improving cross-border linkages and trade infrastructure to ease the movement of goods and services across the region. Discussions also focused on strategies to empower women economically, recognizing their vital role in the regional economy.
The summit explored potential synergies between the blue (maritime) economy and the mountain economy, aiming to harness the unique resources of the region for sustainable development.
All member states agreed on the urgent establishment of the BIMSTEC Chamber of Commerce & Industry (BIMSTEC-CCI). The Confederation of Indian Industry (CII) was tasked with preparing the necessary paperwork and communicating with the respective governments and chambers to expedite the process.
The summit also recognized the importance of integrating Micro, Small, and Medium Enterprises (MSMEs) into the global value chain to enhance their competitiveness and market access. There was a consensus on the need to strengthen cooperation in the services sector, which holds immense potential for economic growth in the region.
Participants discussed finding synergies in energy cooperation to address the growing energy needs of the region.
The summit was attended by key figures from the BIMSTEC member states, including Piyush Goyal, Minister of Commerce and Industry, Government of India; Indra Mani Panday, Minister of Industry, Commerce & Supplies, Government of Nepal; Minn Minn, Deputy Minister of Commerce, Government of Myanmar; Kshenuka Senewiratne, High Commissioner of Sri Lanka; Suchart Chomklin, Deputy Minister of Commerce, Kingdom of Thailand; and Chhime Tshering, Director General, Department of Industry, Ministry of Economic Affairs, Bhutan.
Representatives from Bhutan made significant contributions to the discussions. Chhime Tshering, Director General of Bhutan’s Department of Industry, emphasized the importance of regional cooperation for Bhutan’s economic growth. Aum Phub Zam, former President of the Bhutan Chamber of Commerce and Industry (BCCI), and Aum Lily Wangchuk from the Soksoom Centre for Wellbeing & Happiness highlighted Bhutan’s commitment to sustainable development and well-being. Kamal Pradhan, Vice President of BCCI, also participated in discussions, underscoring the role of Bhutanese businesses in regional trade.
Outcomes and future directions
The summit concluded with a strong call for immediate action on several fronts. The establishment of a PTA as a precursor to the BIMSTEC FTA was prioritized, with an emphasis on conducting thorough studies and initiating work on the agreement. The formation of the BIMSTEC Chamber of Commerce and Industry was also fast-tracked, with CII tasked to prepare the terms of reference and communicate with the respective governments for the establishment of the Chamber.
Additionally, the institutionalization of an annual BIMSTEC Business Summit was proposed to ensure that the momentum generated during this event continues in the coming years.
Chhime Tshering, Director General of Bhutan’s Department of Industry, stated that the BIMSTEC Business Summit 2024 was a landmark event, marking a significant step towards deeper economic integration among the BIMSTEC member states. The collaborative discussions across various tracks—trade and logistics, services, PTA, synergies in the blue and mountain economy, and women’s economic empowerment—highlighted the shared commitment to regional growth and prosperity. With the groundwork laid during this summit, the BIMSTEC region is poised to strengthen its economic ties and unlock new opportunities for its 1.8 billion people.
Piyush Goyal, the Minister of Commerce and Industry, emphasized the importance of collaboration among BIMSTEC countries to create new alternatives for a bright and prosperous future. The summit, organized by the Confederation of Indian Industry (CII) in partnership with the Ministry of External Affairs, highlighted the need for inclusive growth and development through partnerships with startups and the business community across the region.
The minister highlighted the immense potential of the Blue Economy, which could significantly boost job creation and economic growth in the BIMSTEC region. He also pointed out the opportunities in strengthening regional value chains, particularly in agriculture and mineral production. To enhance trade and cooperation, the Minister suggested removing non-tariff barriers, adopting international trade facilitation norms, and promoting e-commerce and connectivity.
In his address, the minister proposed the creation of a BIMSTEC desk to facilitate investments, trade, and tourism across the seven member nations. He stressed the need for deeper engagement between BIMSTEC nations, calling on the business community to support the realization of the BIMSTEC Free Trade Agreement (FTA).
Indra Mani Pandey, Secretary General of the BIMSTEC Secretariat, emphasized the creation of a BIMSTEC Chamber of Commerce and Industry to engage industrial and trading communities. He urged the member states to prioritize concluding the BIMSTEC FTA by June 2027, in time for the 30th anniversary of the organization.
Damodar Bhandari, Minister of Industry, Commerce and Supplies of Nepal, highlighted the importance of integrating regional value chains through trade facilitation and digital transformation to drive growth, prosperity, and stability in the BIMSTEC region. He reaffirmed Nepal’s commitment to collaboration with BIMSTEC partners for shared goals of sustainable development.
Suchart Chomklin, Deputy Minister of Commerce of Thailand, noted the opportunities for the BIMSTEC region in strengthening supply chains, expanding trade, and attracting foreign investments, particularly in sectors like tourism, healthcare, logistics, and information technology.
Minn Minn, Deputy Minister of Commerce of Myanmar, emphasized the potential benefits of the early operationalization of the BIMSTEC FTA, stating that it would enhance the region’s attractiveness to foreign investors, improve local industries’ global competitiveness, and have transformative impacts, including poverty reduction and environmental stability.
Kshenuka Senewiratne, High Commissioner of Sri Lanka to India, underscored the critical role of private sector support in the FTA’s early operationalization and highlighted the importance of connectivity in integrating BIMSTEC nations with global supply chains.
Chhime Tshering, Director General of Bhutan’s Department of Industry, noted that the BIMSTEC FTA framework agreement could serve as a legal foundation for expanded market access and promote healthy competition, leading to improved economic efficiency and higher-quality goods and services.
Sanjiv Puri, President of CII, called for the early operationalization of the BIMSTEC FTA, citing strong global trends in energy transition, digital transformation, and supply chain diversification. Chandrajit Banerjee, Director General of CII, emphasized the priority of sector-specific engagement in agriculture, infrastructure, renewable energy, healthcare, and tourism during the BIMSTEC summit.
The session was also addressed by the Secretary General (SG) of the BIMSTEC Secretariat, who stated, “Since the inception of BIMSTEC in 1997, the critical importance of intra-regional trade has been underlined by both governments and think tanks, media, and academia.” He urged the trade ministers and secretaries to conclude the constituent agreement by 2027, which would mark the 30th anniversary of BIMSTEC.
The SG expressed his hope that the BIMSTEC business forums, which have been dormant for quite some time, would be reconvened and revived without further delay.
By Sangay Rabten, Thimphu