India’s Northeast – Kolkata Link via Myanmar

Syllabus: GS3/Infrastructure; Economy

Context

• India’s decision to establish a direct link between the Northeast and Kolkata via Myanmar, bypassing Bangladesh, marks a strategic shift in regional connectivity. 

Key Aspects of India’s Northeast & Myanmar

• India shares a 1,643 km land border with Myanmar, connecting Arunachal Pradesh, Nagaland, Manipur, and Mizoram.
  • Myanmar serves as India’s gateway to Southeast Asia, making it vital for trade and connectivity.

Kaladan Multimodal Transit Transport Project (KMTTP)

• It aims to link Kolkata to Mizoram via Sittwe Port (Myanmar) and Paletwa inland waterways.
  • It enables multi-modal cargo flow (sea, river, road).
  • It reduces distance and time compared to the ‘Chicken’s Neck’ corridor (Siliguri).
  • It connects with India’s East-West industrial corridor plans.
• Phases:
  • Kolkata to Sittwe (Sea) – 539 km (Completed)
  • Sittwe to Paletwa (River) – 158 km (Completed)
    • Paletwa to Zorinpui (Road) – 108 km (Partially completed, delayed due to armed conflict in Rakhine State).
  • Zorinpui to Aizawl & Shillong (Road Extension): Underway through the Shillong-Silchar-Zorinpui corridor, approved by MoRTH.

Why is the Northeast-Kolkata Link via Myanmar significant?

• Shift in Connectivity Strategy: Historically, the Northeast has relied on Bangladesh for transit access to Kolkata and other parts of India.
  • India has invested in major connectivity projects like the India-Myanmar-Thailand Trilateral Highway and the Kaladan Multi-Modal Transit Transport Project (expected to be completed by 2030).
    • These projects aim to boost trade, tourism, and regional integration between India and ASEAN nations.
• Geopolitical Considerations: The decision to bypass Bangladesh comes after Bangladesh’s interim government remark related to Northeast India as ‘landlocked’ and dependent on Dhaka for ocean access.
  • India’s response was to strengthen alternative routes, ensuring trade independence.
• Economic and Strategic Benefits:
  • Reduced Dependency on Bangladesh: The new route eliminates transit fees and bureaucratic hurdles associated with Bangladesh.
  • Boost to Northeast’s Economy: Improved connectivity will enhance trade, tourism, and industrial growth in the region.
  • Strengthening India’s Act East Policy: The Myanmar route aligns with India’s broader strategy to deepen ties with Southeast Asia.
• Security Implications:
  • India’s investments in Myanmar infrastructure also help counter Chinese influence.
  • Presence in western Myanmar contributes to border stability, especially in conflict-prone Chin and Rakhine regions.

Challenges with Myanmar Route

• Insurgency threats (e.g., Arakan Army operations).
• Slow construction progress due to terrain and security issues.
• Chinese infrastructure competition in the same region (Kyaukpyu port, CMEC).

Curbing Bangladeshi Exports via Land Ports

• Ban on Ready-Made Garments via Land Ports: India has barred Bangladeshi ready-made garments from entering through land ports in Tripura, Assam, Meghalaya, and Mizoram.
  • These goods must now be shipped via Kolkata and Mumbai sea ports, where they will undergo mandated inspections.
• Retaliation Against Bangladesh’s Restrictions: Bangladesh had earlier stopped Indian yarn exports through land ports, allowing imports only via sea routes.
  • India’s response aims to counterbalance trade policies that disadvantage Indian exporters.
• Impact on Trade & Economy: Around 93% of Bangladesh’s garment exports to India previously passed through land ports.
  • The new restrictions will likely increase costs for Bangladeshi exporters and shift trade dynamics in the region.

Source: IE