Myanmar Junta and India Aim to Revive Cross-Border Trade

Myanmar Junta and India Aim to Revive Cross-Border Trade, but Challenges Persist

Myanmar junta and India government have expressed a strong interest in reviving cross-border trade and business initiatives. However, ongoing conflicts and security concerns on the ground present significant obstacles to realizing these ambitions, as highlighted at the Global Business Summit 2025.

During the summit, Indian officials and representatives of Myanmar’s junta discussed potential avenues for rekindling bilateral trade, particularly in infrastructure, energy, and logistics. The Myanmar-India border trade, which has historically played a vital role in regional commerce, has suffered severe disruptions due to ongoing political instability in Myanmar following the 2021 military coup.

Despite diplomatic efforts, the realities on the ground paint a challenging picture. Myanmar’s ongoing civil conflict, with resistance groups controlling significant border areas, has led to security risks that deter investors and traders. Additionally, economic sanctions imposed by Western countries on Myanmar’s junta create further complications for seamless trade and financial transactions.

“The Indian government sees potential in Myanmar as a key trade and transit partner, but the situation remains highly uncertain,” an Indian trade official remarked at the summit. “Without political stability, sustained investment and trade revival will remain difficult.”

Several Indian companies, particularly in the infrastructure and energy sectors, have previously engaged in projects within Myanmar. However, the volatile security environment and lack of legal clarity have hampered further progress. Indian authorities are reportedly considering alternative trade routes to bypass conflict-ridden regions while still maintaining economic engagement with Myanmar.

Experts at the Global Business Summit 2025 emphasized that long-term solutions would require a stable political environment in Myanmar, coupled with trust-building measures between the junta and resistance groups. Without these, the prospect of reviving cross-border trade and business remains distant.

As Myanmar’s crisis persists, India’s diplomatic and economic strategies in the region will need to balance strategic interests with ground realities, ensuring that business cooperation does not inadvertently legitimize the military regime’s actions.