India views the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) as crucial to its broader geopolitical and economic plans. Emphasizing the ‘Act East’ and ‘Neighbourhood First’ policies, India’s deepening involvement with BIMSTEC underscores its importance in the Indo-Pacific framework. The BIMSTEC group includes Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand, with a collective population exceeding 1.8 billion and a GDP of around USD five trillion.
Amid global economic changes and evolving supply chains, BIMSTEC offers India opportunities for regional collaboration and new avenues for growth. Over the past decade, India’s trade with BIMSTEC nations has significantly increased, surpassing USD 48 billion in 2024 from USD 20 billion in 2014. The report projects this trade volume to reach USD 100 billion by 2030 with continued policy support, showcasing the untapped potential of the group.
Trade dynamics have shifted within BIMSTEC, with traditional sectors like petroleum products and textiles being joined by emerging areas such as digital services, fintech, renewable energy, and advanced manufacturing. This diversification signals a move towards a more resilient and forward-looking trade environment. India has also escalated its investments in BIMSTEC countries, focusing on sectors like infrastructure, energy, connectivity, and digital transformation.
Strategically, BIMSTEC holds significance for India in the Indo-Pacific region, providing a platform to boost regional cooperation, enhance maritime security, and advocate for a rules-based economic system. India’s active participation in BIMSTEC reflects its aim to counter external influences and reinforce its regional leadership. The report highlights BIMSTEC’s potential as a model for inclusive and resilient regionalism, offering a pathway to promote regional growth and contribute to a more interconnected global economy.
