Colombo, April 4 (NationPress) India views the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) as more than just a regional alliance; it serves as a vital component of its expansive geopolitical and economic strategy.

Driven by the dual foundations of the 'Act East' and 'Neighbourhood First' policies, India's deepening involvement with BIMSTEC over the years highlights the grouping's importance within the Indo-Pacific context, according to a report released on Friday.

The leading Sri Lankan publication, Daily Mirror, stated that in light of evolving global economic conditions and diversifying supply chains, BIMSTEC presents India with a valuable opportunity to bolster regional collaboration and tap into new avenues for growth.

This group, which includes Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand, encompasses a population exceeding 1.8 billion and a combined GDP of roughly USD five trillion.

“India's trade partnerships with BIMSTEC nations have seen remarkable expansion over the last decade. From a relatively modest USD 20 billion in 2014, bilateral trade has surged to approximately USD 48 billion in 2024. This increasing trend not only signifies enhanced economic relationships but also the region's growing importance in India's external trade strategy. With sustained policy backing, this trade volume is anticipated to hit USD 100 billion by 2030, reflecting the group's vast untapped potential,” the report elaborated.

Furthermore, the composition of trade has shifted significantly. While traditional sectors such as petroleum products, pharmaceuticals, iron and steel, and textiles remain prevalent, emerging fields like digital services, fintech, renewable energy, and advanced manufacturing are gaining prominence. This evolution illustrates a transition towards a more resilient and future-oriented trade landscape,” the report noted.

Beyond trade, India has significantly increased its investments in BIMSTEC countries, focusing strategically on vital sectors such as infrastructure, energy, connectivity, and digital transformation.

“For instance, in Bangladesh, Indian investments surpass USD three billion, impacting sectors like power generation, pharmaceuticals, and logistics. Similarly, in Sri Lanka, India is involved in port development, railway rehabilitation, and energy initiatives, further solidifying bilateral economic ties,” it highlighted.

The report emphasized that BIMSTEC is of strategic importance for India within the Indo-Pacific region, providing a platform to enhance regional cooperation, bolster maritime security, and advocate for a rules-based economic order.

India's active participation in this grouping reflects its commitment to countering external influences while reinforcing regional leadership.

As the Daily Mirror report pointed out, “With the ongoing transformations in the global economic landscape, BIMSTEC can emerge as a paradigm for inclusive and resilient regionalism. By realizing its full potential, India and its partners can foster regional growth and contribute to a more balanced and interconnected global economy.”