Rupakjyoti Borah 
Prime Minister Modi makes a statement during the 6th BIMSTEC Summit, in Thailand. (©Prime Minister of India website)
In Bangkok, the recent Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation summit, commonly known as BIMSTEC, provides a good opportunity for the leaders of the member countries to meet on a common platform. The BIMSTEC region is home to roughly 1.73 billion people and has a combined gross domestic product of $5.2 trillion USD. It was established in June 1997 with the signing of the Bangkok Declaration.
During his speech at the recent BIMSTEC Summit, Indian Prime Minister Narendra Modi noted that "BIMSTEC serves as a vital bridge between South and Southeast Asia, and is emerging as a powerful platform for advancing regional connectivity, cooperation, and shared prosperity."
Its member states are Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand. Their location is therefore critical for both India and Japan. However, this grouping has faced many challenges, especially in recent times. One of the main concerns is that the regime in Bangladesh has changed. This has led to elevated tensions in the bilateral ties between India and Bangladesh. Also, Myanmar is on the edge of a precipice with the ongoing civil war and the devastating earthquake that hit the country recently.
Relations between India and Bangladesh have soured over the treatment of minorities in Bangladesh and India's shelter provided to the deposed leader, Shiekh Hasina.
A troubling issue for BIMSTEC is the differences between Bangladesh and Myanmar, where the junta has lost control of significant portions of its territory. Meanwhile, Bangladesh and Myanmar have differences over the issue of the Rohingyas. Many of this minority have fled the violence in the Myanmarese border province of Rakhine (earlier known as Arakan) to Bangladesh.
Importance of the BIMSTEC Countries for India
BIMSTEC is important for India for a host of reasons. One is that Myanmar is the gateway to the ASEAN region for India. New Delhi has reached out to the ASEAN countries in a big way ever since the end of the Cold War, which led India to reset its foreign policy priorities through its "Act-East Policy." In the past, India has taken a keen interest in the BIMSTEC as another regional organization. The South Asian Association for Regional Cooperation, of which India is a part, was not going anywhere. That was owing to the differences between India and Pakistan.
BIMSTEC member countries like Sri Lanka are very important for India. During his return from the BIMSTEC Summit in Bangkok, PM Modi also visited Sri Lanka. This is significant since in the past, Sri Lanka was perceived as tilting towards China. However, that has changed now.
New Sri Lankan President Anura Kumara Dissanayake's first port of call after taking over the government was India. PM Modi also became the first foreign leader to visit Sri Lanka after he was inaugurated. Earlier in 2020, India was also one of the first countries to come to the aid of Sri Lanka after it defaulted on its sovereign debt, along with countries like Japan.
In addition, the Easter terror attacks of April 2019 made it clear that the danger to Sri Lanka was not from India, but from internal factors.
The BIMSTEC region is even more important for India in light of the tariffs imposed by the Trump government against various countries. In South Asia, that includes countries like India, Bangladesh, Sri Lanka, and Thailand.
Why the BIMSTEC Region is Important for Japan
The BIMSTEC region, especially countries like Myanmar, Bangladesh, and Sri Lanka, is important for the success of Japan's free and open Indo-Pacific or FOIP strategy. Japan was one of the first countries to recognize Bangladesh. Meanwhile, Sri Lanka lies on critical sea lanes of communication in the Indo-Pacific region.
It is worth mentioning here that the Japan Maritime Self-Defense Force (JMSDF) has a base in Djibouti. And for the maintenance of this base, Sri Lanka's location is very important.
In July 2024, Tokyo also resumed disbursement to yen loan projects. Japan had suspended these to the region since Sri Lanka's default in 2022.
BIMSTEC nations like Thailand have been important investment destinations for Japanese auto makers. In addition, in the wake of the Trump Administration imposing sanctions on China, Japanese companies may also be forced to relocate additional production lines to other countries. For this purpose, the BIMSTEC member countries could be attractive options.
The challenge for Japan will, of course, be in Myanmar, due to the instability in that country. However, a lot of Japanese investments are held up there.
It is also worth mentioning that neither Japan nor India is a part of the China-led Belt and Road Initiative (BRI). Hence, both countries need to provide alternate models of infrastructure development to the BIMSTEC member countries.
The Road Ahead
It is in India and Japan's economic and political interests to look anew at the BIMSTEC region. India has a policy called "Neighborhood First," which aims to reach immediate neighbors. As a part of this, India has been the first responder in times of natural disasters in Nepal, Bangladesh, Sri Lanka, and Myanmar. At the same time, Japan has also been actively involved in aiding these nations during times of crises, both economic and natural.
Hence, a greater effectiveness would come from having India and Japan pool their efforts in the BIMSTEC region.
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Author: Dr Rupakjyoti Borah
Dr Rupakjyoti Borah is a Senior Research Fellow with the Japan Forum for Strategic Studies. The views expressed here are personal.
