M A Hossain,
The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) stands at a defining moment. Established in 1997, the regional organization—comprising Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand—has struggled to fulfill its potential. Despite its strategic position as a bridge between South and Southeast Asia, BIMSTEC remains underutilized due to weak institutional structures, inconsistent political commitment, and inadequate connectivity.
With the 2025 BIMSTEC Summit in Bangkok approaching, India, as the largest economy in the group, has a crucial opportunity to reinvigorate the organization. A strategic and proactive approach could prevent BIMSTEC from suffering the inefficiencies that have plagued the South Asian Association for Regional Cooperation (SAARC). The future of regional integration in South and Southeast Asia hinges on India’s leadership in institutional reform, economic integration, and security cooperation.
BIMSTEC: A Bridge Between South and Southeast Asia
BIMSTEC holds immense geopolitical and economic significance. With a combined population of over 1.7 billion and a GDP exceeding $4 trillion, the bloc offers substantial economic potential. The Bay of Bengal, a critical maritime link, makes BIMSTEC an ideal platform for regional trade, infrastructure development, and energy cooperation.
Trade and Investment: Unlocking Economic Growth
The economies within BIMSTEC are largely complementary, creating a strong foundation for intra-regional trade and cross-border investment. If properly integrated, BIMSTEC could emerge as a dynamic economic corridor, attracting foreign investors seeking access to both South and Southeast Asian markets.
Connectivity is the key to unlocking this potential. Infrastructure projects like the India-Myanmar-Thailand Trilateral Highway and the Kaladan Multimodal Transit Transport Project could transform BIMSTEC into a trade and logistics hub. Improved transport and digital networks would further enhance economic interdependence, making trade more seamless and efficient.
Energy Cooperation: A Path to Sustainable Development
The Bay of Bengal is rich in natural gas and renewable energy sources. A regional approach to energy security, particularly through power grid connectivity and joint renewable energy initiatives, could foster sustainable development. Strengthening energy cooperation would reduce dependency on external sources and enhance regional resilience.
Security Collaboration: Addressing Shared Threats
Security cooperation within BIMSTEC is becoming increasingly vital as the region faces common threats, including terrorism, drug trafficking, human trafficking, and cybercrime. A coordinated security framework could enhance intelligence-sharing, counterterrorism operations, and maritime security. Stronger security mechanisms would not only protect national interests but also reinforce economic stability.
Strengthening People-to-People Ties
Beyond economic and security considerations, fostering people-to-people connections is essential for regional solidarity. Initiatives such as tourism promotion, educational exchanges, and cultural collaborations can build trust and deepen integration among BIMSTEC nations. Strengthening these social and cultural bonds would complement economic and security efforts, ensuring a more holistic approach to regional cooperation.
Lessons from SAARC: Avoiding the Pitfalls of Regional Cooperation
SAARC, founded in 1985, has been plagued by mistrust, particularly between India and Pakistan. Political disagreements have hindered key initiatives, and the organization’s consensus-based decision-making model has made it ineffective in implementing policies.
One of SAARC’s most significant failures is its low intra-regional trade, which stands at just 5% of total trade, compared to nearly 25% in ASEAN. A lack of economic integration, weak infrastructure, and persistent political conflicts have stifled SAARC’s effectiveness.
Comparing BIMSTEC with EU, ASEAN, and SAARC
BIMSTEC lags behind the European Union (EU), ASEAN, and SAARC in institutional development. The EU is the most integrated, with strong legal frameworks, centralized decision-making, and enforceable policies. Institutions like the European Commission and the Court of Justice ensure policy implementation and dispute resolution—elements BIMSTEC lacks.
ASEAN, in contrast, follows a consensus-driven “ASEAN Way,” prioritizing non-interference and voluntary compliance. Though slower in decision-making, it has achieved deep economic integration through agreements like ASEAN Free Trade Area (AFTA) and the Regional Comprehensive Economic Partnership (RCEP).
SAARC, however, suffers from political tensions, particularly between India and Pakistan, leading to deadlocks and policy stagnation. Its unanimity-based decision-making weakens effectiveness.
BIMSTEC must adopt a hybrid approach, blending ASEAN’s flexibility with the EU’s structured mechanisms while avoiding SAARC’s inefficiencies. Strengthening the BIMSTEC Secretariat, enforcing trade agreements, and securing institutional funding can enhance its effectiveness as a regional bloc.
BIMSTEC: A More Promising Alternative
Unlike SAARC, BIMSTEC was formed in 1997 with a broader vision that bridges South Asia and Southeast Asia. This expanded geographical scope provides it with greater opportunities for economic and strategic collaboration. BIMSTEC focuses on 14 priority sectors, including trade, energy, connectivity, and counterterrorism, with each member state leading a specific area.
One of BIMSTEC’s key advantages over SAARC is the presence of major regional players such as India and Thailand, which brings economic dynamism and strategic importance to the grouping. Additionally, the exclusion of Pakistan removes the geopolitical roadblock that has often stalled progress within SAARC. However, BIMSTEC’s intra-regional trade remains insignificant when compared to ASEAN, highlighting the need for deeper economic engagement.
Challenges Hindering BIMSTEC’s Growth
1. Weak Institutional Framework and Political Commitment: Unlike ASEAN, BIMSTEC lacks a legally binding charter and a structured decision-making mechanism. The BIMSTEC Secretariat in Dhaka remains underfunded and understaffed, limiting its ability to implement policies effectively. Without stronger financial backing and autonomy, the organization remains reactive rather than proactive.
2. Infrastructure and Trade Barriers: Despite ambitious plans, infrastructure development is sluggish due to bureaucratic inefficiencies, funding gaps, and regulatory misalignment. Trade is further hindered by non-tariff barriers, restrictive policies, and inefficient border procedures.
3. Political Instability and Geopolitical Complexities: Political instability within member states, such as Myanmar’s ongoing crisis, affects regional cohesion. Additionally, BIMSTEC operates in a competitive geopolitical environment, with influences from China, India, the U.S., and Japan. Balancing these external influences while prioritizing regional unity remains a challenge. While China’s Belt and Road Initiative (BRI) offers infrastructure investment opportunities, it also generates strategic tensions, particularly with India. The presence of overlapping security and economic interests complicates regional cooperation, requiring BIMSTEC nations to balance external influences while prioritizing internal cohesion.
The Path Forward: Strengthening BIMSTEC’s Foundations
To avoid SAARC’s pitfalls and establish itself as a strong regional organization, BIMSTEC must prioritize the following measures:
1. Regular Summits and Institutional Strengthening: Frequent high-level engagements are essential to maintain momentum. Strengthening the BIMSTEC Secretariat with increased funding and technical expertise would ensure better coordination and implementation of initiatives.
2. Fast-Tracking the BIMSTEC Free Trade Agreement (FTA): Finalizing and implementing the FTA would provide a significant boost to intra-regional trade and investment flows, fostering deeper economic integration.
3. Enhancing Connectivity Infrastructure: Expedited completion of transport corridors, digital networks, and energy grids would facilitate smoother trade and investment within the region.
4. Strengthening Security Cooperation: Given the rise of transnational threats like terrorism, cybercrime, and drug trafficking, a well-coordinated security framework would bolster regional stability.
5. Building Political Consensus: Unlike SAARC, which is often stalled by internal conflicts, BIMSTEC members must commit to a shared vision with actionable policies, ensuring mutual respect and cooperation.
BIMSTEC holds the potential to become a formidable regional bloc that bridges South and Southeast Asia, unlocking economic growth, connectivity, and security cooperation. However, this will only be possible through proactive leadership, robust institutions, and sustained political commitment from all member states.
India’s Role in Revitalizing BIMSTEC
1. Institutional Reform and Financial Commitment: India should lead efforts to strengthen BIMSTEC’s Secretariat, increasing its authority and funding. Establishing a "BIMSTEC Development Fund" could provide financial support for infrastructure, digitalization, and trade facilitation.
2. Connectivity Enhancement: Accelerating the India-Myanmar-Thailand Trilateral Highway and expanding railway links, inland waterways, and trade corridors should be a priority. Digital connectivity, including fintech cooperation and regional e-commerce frameworks, would further boost integration.
3. Trade and Investment Promotion: Finalizing the "BIMSTEC Free Trade Agreement (FTA)" is essential. India should work with member states to remove non-tariff barriers, simplify customs procedures, and encourage private sector investment in key sectors like manufacturing and energy.
4. Security and Climate Resilience: Establishing a "BIMSTEC Counterterrorism Command Centre" could enhance intelligence-sharing. Climate initiatives, including a "BIMSTEC Disaster Response Mechanism", should be prioritized to tackle rising environmental threats in the region.
5. Strengthening People-to-People Ties: India could introduce "BIMSTEC scholarships, cultural festivals", and visa facilitation programs to deepen social and economic linkages.
A Stronger BIMSTEC with Indian Leadership
The 2025 BIMSTEC Summit in Bangkok presents a crucial opportunity for India to drive meaningful reforms. By committing to time-bound projects, ensuring diplomatic engagement, and aligning BIMSTEC’s initiatives with partners like ASEAN, Japan, and the EU, India can transform BIMSTEC into a dynamic regional powerhouse.
A reinvigorated BIMSTEC offers India and its neighbours an alternative to the stalled SAARC framework and a pathway to deeper regional integration. By taking decisive steps in trade, connectivity, security, and climate resilience, India can transform BIMSTEC into a dynamic regional powerhouse. With bold leadership and sustained commitment, BIMSTEC has the potential to drive South and Southeast Asia toward greater economic prosperity and strategic stability.
M A Hossain, Senior Journalist, Covers South Asia and ASEAN Region, for The News Analytics Journal.
This article published at :
1. The News Analytics Journal, Ind: Apr,25
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