Indo - Mayanmar Relationship free essay sample

PRESENT TRENDS OF BORDER TRADE BETWEEN INDIA AND MYANMAR ON SELECTED COMMODITIES WITH REFERENCE TO MANIPUR INTRODUCTION Trade plays an important role in the economic development of a region or country. It is more significant in the framework of modern liberalized economy. Realization of importance of cooperation among countries of the world increases and trade is indispensable in strengthening relationship between two countries. Moreover, an underdeveloped country depends a lot on import modern technology for building up diversified industrial base economy. It is a well known fact that judicious trade opens up immense opportunities for developing countries. Through exchange, a country can enable its people to consume lots more than they would have, in absence of trade it can’t be possible. Given the diversity in consumption pattern it is almost impossible for any country to operate without trade. Trade also plays an important role in the development of a region or country irrespective of its size and structure. We will write a custom essay sample on Indo Mayanmar Relationship or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page In a brilliant paper of 1939 Paul A. Samuelson proved under certain assumptions concerning technology, that for a small country unable to influence world prices, free trade is, in a clearly defined sense, better than no trade. Thus analyzing the pattern, trend, volume and prospect of trade of a region is essential for understanding its development potential. This is true for a small state like Manipur where most of the day to day needs are meet by goods produced from outside. Historically, there is a clear picture that Manipur had been practicing trade with different parts of the India and other countries such as Myanmar and China in one form or another. In one of the historical book on Manipur called â€Å"Chietharol Kumbaba† (The Royal Chronicle of Manipur) many events are cited through the book that significantly indicates the involvement of the state in trade with different part s of the country and foreign countries. Thus, Indo-Myanmar border trade had been initiated between the two sides since April 12, 1995 as a consequence of a trade agreement signed in 21st January 1994 between Governments of India and Myanmar through Moreh a border town of Manipur, trading activities have assumed importance in the state of Manipur. Indo-Myanmar border trade was finally open by the Commerce Ministries of the India and Myanmar. Subsequently 22 items have been allowed as tradable across the border. The main role of the Department of Commerce and Industries of Government of Manipur is acting as a linkage agent for promotion of border trade between India and Myanmar. It can be said that Indo-Myanmar trade can help to increasing the economic growth and development of Manipur. Many economists pointed out that Indo-Myanmar border trade can play a vital role in promoting speedy development of Manipur. In this connection B K Sharma and S N Goswamy (2000) pointed out that with the liberalization of the border trade, the activities like trade and commerce, banking and insurance services, transport and communication, warehousing facilities etc. would be increase not only in Manipur also in entire North Eastern Region which in turn would accelerate the economic growth and development of the region. Border trade can also be creating external economies which could be reaped by the state. Following the liberalization of border trade, the volume of trade has been raised significantly as compared with pre-border trade liberalization. For example, the trade between India and Myanmar rose from Rs. 894 millions in 1989-90 to Rs. 2828 millions in 1997-1998 and continued to increase the volume of trade, it reached at $ 341. 30 million in 2004-05. It jumped to $ 557. 68 million in 2006-07. India’s export consist mainly cement, cycle, drugs and pharmaceutical, auto parts and accessories, cotton yarn, fertilizer etc. Major items entering in India from Myanmar are blankets, electronic goods, betel nuts, pulses, teak, ground nut, iron scrap, gold, silver, precious stones, roasted sunflower seeds etc. But a study conducted by the Indian Institute of Foreign Trade (IIFT) New Delhi, revealed that high volume of informal trade on illegal basis with neighboring country. It is a serious problem in this trade. SIGNIFICANCE OF THE STUDY Trade is the engine or highway of economic growth and development. In Manipur’s economy, it depends extensively for consumption of its people on goods imported from other parts of the country and some extent on those goods imported from/through Myanmar. So, while considering the economic development process of the state, the role of trade can’t be ignored. Manipur has emerged as captive market products come through Myanmar. An attempt has been made in the study to analyze the contribution of trade in economic growth and development of Manipur. The study will be stresses on Indo-Myanmar border trade particularly the one that has been taking place for a long time the international border of the state. Moreover, Myanmar is the gate way to the India’s â€Å"Look East Policy† and Indo-Myanmar border trade main trade centre on Indian side is located in Manipur. So, the critical examination of the emerging pattern of Indo-Myanmar border trade is an important matter of consideration in analyzing process of economic development of the state. In this context, an attempt can be made to analyze the trade relating between India and Myanmar . The present study can provide the answer to the following questions: a) Is there trade relation between India and Myanmar? b) Is there any growth of trade between India and Myanmar? c) Has the trade performed best for selected commodities in India and Myanmar or not? ) Whether are there policy and measures to promote trade between India and Myanmar or not? OBJECTIVES OF THE STUDY a) To examine the emerging pattern of Indo-Myanmar border trade; b) To study the growth and development of trade in India and Myanmar during the period of 1994-05 to 2008-09; c) To compare the trade analysis between India and Myanmar after the liberalization for the selected commodities; and d) To make suitable suggestions for improve ment of trade relation between India and Myanmar. METHODOLOGY OF THE STUDY The study will be confine to India and Myanmar and relations on the selected commodities. This study will be base on the secondary data. The secondary data will be collect from the published and unpublished records, Government Reports, publication of the two countries. The secondary data sources are Annual Reports of the Central Bank of Myanmar, Myanmar Customs, External Resource Department Reports, National Gem and Jewellery Authority Reports, Reserve Bank of India Annual Reports, Centre for Monitoring Indian Economy, Indian Custom Report, Export Import Files, Marketing Intelligence Department, Export Import Promotion of India, Check Post Registers ,Indo-Myanmar Chamber of Commerce’s Annual Reports, Commerce and Taxation Department Manipur, Foreign Trade and Balance of Payment Reports, Ministry of Commerce Reports, Newspapers, Websites and other sources of information. The globalization policy has been implemented in the year 1995 in India. In order to compare the trade performance between pre-globalization and post globalization. The period study will be from 1994-95 to 2008-09 The study will be base on the performance of export from India and Myanmar, 22 commodities are selected for the study and analysis. Suitable statistical tools will be use for the collection of secondary data. The data will analyses with the help of statistical, mathematical and econometric techniques, tabulation, bar diagram, pie diagram, graph, tables etc.