India and Myanmar Strengthen Trade via Rupee-Kyat Mechanism
India and Myanmar on Monday agreed to facilitate and enhance bilateral trade through the Rupee-Kyat settlement mechanism, while also backing closer cooperation in agro-processing, petroleum, energy, and mining sectors. The agreement was reached during high-level talks between Prime Minister Narendra Modi and Myanmar President U Min Aung Hlaing in New Delhi.
According to a joint statement issued after the talks, both sides agreed to facilitate and enhance bilateral trade, including through the Rupee-Kyat settlement mechanism, and appreciated the steady growth in the volume of transactions recorded since its operationalisation in May 2024. The statement also expressed support for closer trade and investment cooperation in areas of mutual interest such as agro-processing, petroleum, energy, and mining, in accordance with respective national laws and regulations.
President Min Aung Hlaing is on an official visit to India from May 30 to June 3 at the invitation of Prime Minister Modi. This marks his first foreign visit since assuming the presidency of the Southeast Asian country in April. During the talks at Hyderabad House, the leaders reviewed bilateral, regional, and global issues.
Prime Minister Modi stated that Myanmar lies at the confluence of India's Neighbourhood First, Act East, and MAHASAGAR policies. Discussions covered trade and economic ties, defence and security, border management, development assistance, and cultural exchanges. Modi emphasised that enhanced connectivity would foster mutually beneficial economic linkages and shared prosperity in the region. Both sides underscored the importance of working towards the completion of the Kaladan Multi-Modal Transit Transport project and the India-Myanmar-Thailand trilateral highway.
Foreign Secretary Vikram Misri noted that Myanmar assured India it would do everything to push the two key connectivity projects, stalled due to active hostilities in the Southeast Asian nation, to completion. The Kaladan project and the trilateral highway have faced delays due to security challenges, but both remain major priorities. Misri stated that the President gave his assurance that Myanmar would take all necessary steps to move these projects forward.
The joint statement also noted that Prime Minister Modi announced an increase in Mekong Ganga ICCR scholarships for Myanmar students from 36 to 100 from 2026 onwards. Reaffirming India's support for Myanmar's sovereignty and territorial integrity, both sides underscored the importance of preventing the misuse of sovereign territory for activities inimical to their security interests. President Hlaing reiterated Myanmar's assurance that its territory would not be permitted to be used against India's security interests.
During a special briefing, Foreign Secretary Misri revealed that Prime Minister Modi directly raised the issue of cross-border insurgent activity during discussions. President Hlaing reiterated Myanmar's sensitivity to these concerns and assured that necessary action would be taken to prevent threats to India's security.
Prime Minister Modi conveyed support for Myanmar-led efforts towards achieving peace, stability, national reconciliation, and socio-economic development, offering continued assistance based on mutual respect. President Hlaing appreciated India's constructive support and cooperation.
Following the meeting with Prime Minister Modi, President Hlaing also met President Droupadi Murmu at Rashtrapati Bhavan, where she described Myanmar as India's gateway to Southeast Asia, underlining the strategic importance of ties between the two neighbouring countries. President Hlaing concluded his Delhi leg and is scheduled to travel to Mumbai for further engagements from June 2.
President Hlaing arrived in India on May 30, accompanied by Union Ministers for the President's Office, Foreign Affairs, Finance and Revenue, Agriculture, Livestock and Irrigation, and Industry and MSME Business Development, along with the Governor of the Central Bank of Myanmar. On May 30, he visited Bodh Gaya, offering prayers at Mahabodhi Temple, Mahabodhi Meditation Centre, and Sujata Temple, underscoring the enduring spiritual and Buddhist ties between the two countries.
On May 31, President Hlaing delivered a keynote speech at the India-Myanmar Business Conclave in New Delhi, jointly organised by UMFCCI and CII. Business heads from both sides discussed avenues for strengthening bilateral trade and commercial opportunities. He also toured the NTPC Energy Technology Research Alliance (NETRA) complex in Greater Noida to observe advanced research and development work in clean energy innovation, energy efficiency, renewable energy integration, and grid resilience.
On June 1, President Hlaing held talks with Prime Minister Modi, charting the way forward for the relationship. Prime Minister Modi hosted a luncheon in his honour. External Affairs Minister S Jaishankar and National Security Adviser Ajit Doval also separately called on President Hlaing.
President Hlaing will visit Mumbai from June 2 to June 3. Prime Minister Modi expressed confidence that the meetings with the Governor of Maharashtra and the Chief Minister, as well as business engagements, would further strengthen bilateral cooperation and economic ties. A business delegation from agriculture, pharmaceuticals, energy, banking, construction, IT, communications, trading, and logistics sectors, along with members of the Myanmar-India Friendship Association, is part of the Myanmar delegation.
President Hlaing thanked Prime Minister Modi for the warm hospitality and extended an invitation to the Prime Minister to visit Myanmar at mutually convenient dates. The joint statement concluded that the official visit reaffirmed the long-standing friendship and close partnership between Myanmar and India, along with the shared commitment to further strengthen cooperation for mutual benefit.
