India–Myanmar Relations: Strategic Importance, Challenges and Future Prospects

Recently, Myanmar President Min Aung Hlaing paid an Official Visit to India.

• Political Reconciliation: India reaffirmed its support for a Myanmar-led and Myanmar-owned peace process involving all stakeholders.
  • India raised the issue of Nobel laureate Aung San Suu Kyi, who is in detention in Myanmar since the military coup in 2021. 

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Key Highlights of Myanmar President’s Visit to India

• Strategic Importance of Myanmar: Prime Minister Modi highlighted Myanmar’s central role in India’s Neighbourhood First, Act East, and MAHASAGAR frameworks.
• Educational Cooperation: India announced an increase in Mekong Ganga ICCR Scholarships for Myanmar students from 36 to 100 annually from 2026.
• Security Assurance: President Min Aung Hlaing reiterated that Myanmar’s territory would not be allowed to be used against India’s security interests.

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• Support for Sovereignty: India reaffirmed its commitment to Myanmar’s sovereignty and territorial integrity amid ongoing internal challenges.
• Border Management: Both sides emphasized preventing the misuse of their territories for activities that threaten each other’s security.
• Kaladan Project: The leaders reviewed progress on the Kaladan Multi-Modal Transit Transport Project and stressed the need for its early completion.
• Trilateral Highway: Both countries reiterated their commitment to advancing the India–Myanmar–Thailand Trilateral Highway to promote regional connectivity and prosperity.
• Trade Facilitation: Both Countries welcomed the growing use of the Rupee–Kyat bilateral settlement mechanism, operational since May 2024.
• Investment Cooperation: Agro-processing, petroleum, energy, and mining were identified as priority sectors for investment and economic collaboration.
• Cyber Scam Victims: India and Myanmar agreed to continue cooperation for the rescue and repatriation of Indian citizens trapped in cyber scam compounds.

Significance of Myanmar for India

• Convergence of Key Policies: Myanmar occupies a unique position at the intersection of India’s Neighbourhood First Policy, Act East Policy, and MAHASAGAR Vision, making it a critical partner in India’s regional strategy.
• Gateway to Southeast Asia: Myanmar serves as India’s land bridge to ASEAN, facilitating connectivity, trade, and deeper engagement with the Indo-Pacific region.
• Regional Influence: Strong India–Myanmar relations are indispensable for advancing India’s strategic, economic, and geopolitical interests across South Asia, Southeast Asia, and the wider Indo-Pacific.
• Strategic Neighbour: Myanmar is India’s only Southeast Asian neighbour sharing both a land border and a maritime boundary, making it vital for regional security and connectivity.
• Northeast Security: Stability in Myanmar is crucial for managing insurgency, cross-border crime, and security challenges along the 1,643-km India–Myanmar border.
• Connectivity Hub: Myanmar is the linchpin of key projects such as the Kaladan Multi-Modal Transit Transport Project and the India–Myanmar–Thailand Trilateral Highway.

• Strategic Pillar of Regional Policy: Myanmar lies at the intersection of India’s Neighbourhood First Policy, Act East Policy, and MAHASAGAR Vision, making it indispensable to India’s regional strategy.
• Economic Partner: Myanmar offers opportunities for trade, investment, energy cooperation, mining, and access to critical minerals and rare earth resources.
  • Bilateral trade between India and Myanmar reached USD 2.15 billion in the 2024–2025 financial year, making India Myanmar’s fourth-largest trading partner. 
  • Trade Balance: India generally maintains a trade deficit with Myanmar due to high imports of agricultural goods, though it is actively pursuing increased exports. 
• Maritime Importance: Myanmar’s coastline along the Bay of Bengal enhances India’s maritime outreach and supports regional connectivity initiatives.
• Indo-Pacific Linkage: Strong relations with Myanmar strengthen India’s engagement with Southeast Asia and advance its broader Indo-Pacific objectives.
• Civilisational Connections: Shared Buddhist heritage and long-standing cultural ties provide a strong foundation for people-to-people relations.
• ASEAN Stability: Peace and stability in Myanmar are essential for the cohesion of ASEAN and the broader security architecture of Southeast Asia.

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Challenges

• Border Security & Insurgency: Several Northeast insurgent groups have historically operated from bases inside Myanmar, posing a major security challenge for India.
  • During the June 2026 visit, PM Modi specifically raised this issue, following which Myanmar assured that its territory would not be used against India’s security interests. 
• Political Instability in Myanmar: The ongoing internal conflict between the Myanmar military and ethnic armed organizations has created uncertainty in bilateral engagement.
• Delay in Connectivity Projects: Strategic projects such as the Kaladan Multi-Modal Transit Transport Project and the India–Myanmar–Thailand Trilateral Highway continue to face delays.
  • The delays are primarily due to active hostilities in Rakhine State and areas controlled by ethnic armed groups.
• Refugee Influx into Northeast India: Violence and instability in Myanmar have resulted in repeated refugee inflows into Mizoram and other border states.
  • Mizoram has been hosting tens of thousands of Myanmar refugees since the 2021 coup, creating humanitarian and administrative challenges.
  • The Rohingya crisis is a humanitarian and human rights tragedy that has strained the relations between India and Myanmar. They have fled to neighboring countries, especially Bangladesh and India, seeking refuge. 
• Cross-Border Crime & Cyber Scams: Myanmar-based cyber scam compounds have emerged as a major transnational security concern.
  • India has repatriated more than 2,400 Indian citizens trapped in such scam centres, while efforts continue to rescue others. 
• Chinese Strategic Influence: Myanmar remains a key arena of India–China competition due to its strategic location and natural resources.
  • Analysts note that India’s engagement with Myanmar is partly driven by concerns over China’s growing economic and geopolitical influence. 
• Difficult Border Management: The 1,643-km India–Myanmar border passes through rugged mountains, dense forests, and remote tribal regions.
  • These geographical conditions make effective surveillance, border fencing, and law enforcement difficult. 
• Impact on Trade and Economic Cooperation: Security concerns and conflict-affected regions continue to hinder trade expansion and investment opportunities.
  • Connectivity delays have limited the economic potential of India’s Act East Policy in Myanmar. 
• Threat to India’s Act East Policy: Myanmar is the only ASEAN country sharing a land border with India and serves as India’s gateway to Southeast Asia.
  • Instability in Myanmar directly affects the success of India’s connectivity, trade, and Indo-Pacific initiatives. 

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Way Forward

• Balancing Democracy and Strategic Interests: India must balance its support for democratic values with the need to engage Myanmar’s ruling authorities for security and connectivity objectives.
• Adopt a Balanced Border Management Strategy: India should pursue a calibrated approach towards the Free Movement Regime (FMR) by strengthening border infrastructure, regulating cross-border movement, and formalizing trade through designated entry points.
  • Such measures can address security concerns while preserving the traditional social, cultural, and economic linkages of border communities. 

• Counter External Influence Through Strategic Partnerships: To balance growing Chinese influence in Myanmar, India should enhance economic cooperation, connectivity initiatives, and development partnerships. 
• • Respecting Myanmar’s sovereignty while strengthening bilateral engagement can reinforce India’s role as a reliable regional partner.
• Promote Mutually Beneficial Economic Cooperation: India should work towards reducing the trade imbalance by encouraging greater market access for Myanmar’s exports, diversifying trade relations, and expanding investments into sectors such as energy, infrastructure, and manufacturing. 
  • Initiatives such as the proposed USD 6 billion petroleum refinery project near Yangon can significantly deepen economic interdependence.
• Expedite Connectivity and Infrastructure Projects: The timely completion of strategic projects such as the Kaladan Multi-Modal Transit Transport Project and Sittwe Port is essential for enhancing regional connectivity, boosting trade, and strengthening India’s Act East Policy. 
  • Improved infrastructure would generate economic benefits for both countries and integrate Northeast India with Southeast Asia.
• Expand Cultural and People-to-People Engagement: India should leverage its shared civilizational and cultural heritage with Myanmar through educational exchanges, cultural programs, and heritage conservation initiatives. 
  • Projects such as the restoration of the Ananda Temple at Bagan and conservation of damaged pagodas can strengthen societal bonds and foster goodwill.
• Encourage Track-II Diplomacy and Regional Peace Initiatives: India can facilitate dialogue platforms involving policymakers, experts, and civil society representatives from regional groupings such as the Quad and ASEAN Troika. 
  • Such initiatives can promote consensus-building, address humanitarian concerns, support national reconciliation, and contribute to lasting peace and stability in Myanmar.

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Conclusion

• India’s Myanmar policy must combine strategic pragmatism, economic engagement, security cooperation, and democratic outreach. 
• A balanced and multidimensional approach will not only protect India’s national interests but also contribute to peace, stability, and prosperity in the broader Indo-Pacific region.

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