Answer

The IMT-TH, a 1,360 km land corridor, aims to connect Kolkata to Bangkok via the Northeast and Myanmar establishing a vital transnational link between South and Southeast Asia. This direct land link improves trade relations with Southeast Asia, opening new markets for Indian businesses and boosting regional integration. A key part of India’s Act East Policy, it strengthens India’s economic and strategic presence in the region.

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Role of IMT-TH in Improving India’s Trade Relations with Southeast Asia

• Enhanced Access to ASEAN Markets: IMT-TH connects India directly to the ASEAN region, offering access to a combined market with a $3 trillion GDP, boosting India’s export potential.
  For instance: Indian textile and pharmaceutical companies’ direct access to high-demand markets like Thailand and Myanmar boosting exports and reducing transit costs.
• Promotion of Trade in Northeast India: The IMT-TH opens new trade routes for Northeast India driving growth and regional integration limited by its traditional agricultural base and access to Southeast Asian markets.
  For instance: Agricultural products from Assam and Nagaland can reach Southeast Asia faster, benefiting local farmers and enhancing regional trade links.
• Reduction in Logistics Costs: By offering a land-based alternative to maritime routes, IMT-TH reduces dependence on expensive sea freight, making Indian exports more cost-competitive in Southeast Asia.
  For instance: Indian electronics companies transporting products through IMT-TH benefit from lower logistics costs than traditional shipping via the Malacca Strait.
• Manufacturing Boost through Cost-Effective Labour: IMT-TH creates opportunities for low-cost manufacturing in Myanmar, allowing Indian firms to access the larger ASEAN market efficiently.
  For instance: Electronics manufacturers can leverage Myanmar’s cost-effective workforce, optimising production costs and expanding access across ASEAN.
• Strengthening of Regional Supply Chains: IMT-TH integrates supply chains between India, Myanmar, and Thailand, enhancing logistical efficiency and bolstering India’s role in regional value chains.
  For example:  The highway opens direct trade channels to Thailand, supporting exports like textiles and handicrafts and encouraging industrial investments.

IMT-TH’s Role in Enhancing India’s Strategic Positioning in the Indo-Pacific

• Counter Chinese Influence: IMT-TH offers a strategic land-based trade route that bypasses China-dominated maritime channels, countering China’s Belt and Road Initiative.
  For example: Indian exports using IMT-TH reduce exposure to potential disruptions in the Malacca Strait, diversifying trade routes and mitigating strategic vulnerabilities.
• Connectivity with Indo-Pacific Allies: IMT-TH strengthens India’s ties with Thailand and other ASEAN nations, promoting regional alliances that support Indo-Pacific stability.
  For instance: Stronger ties with Thailand advance India’s Act East Policy, bolstering strategic partnerships and enhancing India’s geopolitical influence in ASEAN.
• Support for Regional Comprehensive Economic Partnership (RCEP) Integration: Enhanced connectivity through IMT-TH enables India to engage with ASEAN-led initiatives like RCEP, strengthening India’s influence in the Indo-Pacific.
  For instance: Improved ASEAN market access positions India favourably for potential future RCEP involvement, aiding economic integration.
• Strategic Diversification from China: IMT-TH bolsters India’s autonomy in regional infrastructure, providing a counterbalance to China’s Belt and Road Initiative.
  For example: The highway enables India to maintain an independent trade route with Southeast Asia, enhancing strategic leverage in Indo-Pacific engagements.
• Increased Influence in Indo-Pacific Policy Forums: Strengthening economic and transport links through IMT-TH enhances India’s role in Indo-Pacific dialogue platforms and regional security discussions.
  For instance: IMT-TH connectivity boosts India’s standing in forums like the East Asia Summit, influencing security and trade dialogues in the region.

Measures to Maximise the Economic and Strategic Potential

• Prioritise  Infrastructure Completion: Ensuring IMT-TH’s success requires timely completion of infrastructure in Myanmar, addressing delays due to political instability.
  For instance: India could increase financial and technical assistance to Myanmar, ensuring critical sections are completed and reducing highway bottlenecks.
• Security Along the Corridor: Ensuring security and stability along IMT-TH is crucial, particularly in politically sensitive regions of Myanmar.
  For instance: India can collaborate with Myanmar on joint patrols and establish checkpoints for smoother cross-border transit.
• Diplomatic Engagement with ASEAN: Deepening diplomatic ties with ASEAN nations can ensure the highway’s utility and commitment to connectivity goals.
  For instance: Regular bilateral dialogues with Thailand and Myanmar could address operational challenges and enhance trade along IMT-TH.
• Regional Investment in Infrastructure: India could attract regional investments from ASEAN and Japan, creating a collaborative financial model for IMT-TH.
  For instance: Japanese infrastructure companies can invest in maintenance and upgrades, ensuring a reliable corridor and reducing India’s financial burden.
• Industrial Hubs in Northeast India: Developing industrial zones along IMT-TH’s Indian segment can increase economic activities that leverage highway connectivity.
  For instance: Establishing Special Economic Zones (SEZs) in Manipur and Assam would support local industries, facilitating exports through IMT-TH.

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The IMT-TH is a transformative project with the potential to enhance India’s trade relations with Southeast Asia and strengthen its strategic presence in the Indo-Pacific. While challenges remain, targeted efforts in diplomacy, infrastructure investment, and security can maximise IMT-TH’s benefits. By leveraging this corridor, India fortifies its regional partnerships and diversifies trade routes, supporting both the Act East Policy and a broader Indo-Pacific strategy.