Singh-Sein talks on May 28 led to signing of several deals. India promised to provide a $US500 million credit line to develop infrastructure, border area development, air services, cultural exchanges, and a joint trade and investment forum. The two countries also pledged to double their bilateral trade by 2015.
In a joint statement with President Sein, Singh “congratulated” the junta for its “path-breaking reform measures … towards greater democratisation and national reconciliation,” as well as “on-going efforts at political, economic and social reform”and holding“free fair and peaceful elections.” He promised “all necessary assistance in accelerating the country’s democratic transition.”
A large delegation of business leaders accompanied Manmohan Singh on the visit
to seek openings into Myanmar market. They included Bharti Enterprise (world’s fifth largest wireless company) chairman Sunil Bharti Mittal, Tata International Limited Managing Director B. Muthuraman, and Supriya Banerji, Deputy Director General, Confederation of Indian Industry. However, India faces tough competition from Chinese firms that have already done business in Myanmar for several years.India is keen to take a share in oil and gas reserves. Importing more than three-quarters of its crude-oil needs, India urgently needs to find new sources for its growing energy needs. In recent years India was outbid by China gaining Myanmar’s energy deals.
On the eve of the visit, the Foreign Secretary Ranjan Mathai said India will be “emphasizing and flagging our interest in our companies getting more opportunities in Myanmar” both onshore and offshore. During Singh’s visit the Indian energy company, Jubilant Energy won 77.5 percent participating interest in on-land exploration block on May 28 from the two blocks it bid last year.
Indian and Myanmar officials discussed countering various armed separatist groups active in the border region. Both countries’ security forces are already helping each other. Singh reaffirmed this shared commitment “ to fight the scourge of terrorism and insurgent activity in all its forms and manifestations.”
However, a key purpose of Indian Prime Minister’s visit to Yangon was pushing New Delhi’s Look-East Policy. India broke diplomatic relations with junta in 1988. However, it changed the policies towards Myanmar in 1992. Singh emphasized in the joint statement with Sein that “Myanmar holds a significant place both in India’s Look East Policy and in its collaboration with ASEAN countries under the Initiative for ASEAN Integration.”
This is part of India’s broader policy. As India develops trade ties with East and Southeast Asia, New Delhi is seeking to build a cheap transit route from eastern India through Bangladesh and Myanmar to the rest of Southeast Asia.
By developing close relations with India and major powers, the junta is trying to balance between these countries and China. The ruling Union Solidarity and Development Party sent a delegation to Beijing to discuss with Chinese leaders before Singh’s visit. However, it is not clear what the discussions were. The media reported Chinese vice president Xi Jinping as saying, “China has always handled its relations with Myanmar from a strategic perspective.”
When asked about China’s position on Singh’s visit to India, Chinese foreign ministry spokesman Liu Weimin said China is “happy to see the development relations between” India and Myanmar, adding that both countries are China’s “friendly neighbours.”
The Chinese Communist Party-owned Global Times has a different take, however.
The daily said: “It is in India’s interest to encourage Myanmar to take the current political reforms to their logical conclusion for free and fair elections in 2015, but whether it is in Myanmar’s interest to take India as a main ally still needs consideration.”
