Myanmar President visits India to boost bilateral trade and investment

Myanmar President Min Aung Hlaing attending the Myanmar-India Trade and Investment Conclace in New Delhi on May 31. (The Global New Light of Myanmar)

Myanmar President Min Aung Hlaing is currently on an official five-day visit to India until June 3 with an agenda packed with business matters. This is the president’s first overseas trip since taking office on April 10.

On May 31, President Min Aung Hlaing attended the Myanmar-India Trade and Investment Conclave in New Delhi. In his keynote speech, president Min Aung Hlaing formally invited Indian entrepreneurs to venture into strategic, high-growth sectors, namely agriculture, pharmaceutical manufacture and healthcare, textile and garment industries as well as digital technology services.

He further emphasised that the current administration is undertaking a digital transformation through the advancement of Yadanabon Cyber City project, a megaproject aimed at establishing the country’s largest information and communications (ICT) park spanning over 10,000 acres. He subsequently called for Indian entrepreneurs, particularly those who have succeeded in relevant fields, to pledge investment for the project.

President Min Aung Hlaing stressed that by combining India’s advanced technology and capital with Myanmar’s rich natural resources, strategic location and youth workforce, the two nations can drive investment into Myanmar’s value-added product and service industries.

In response, Indian businesses are specifically keen to cooperate in pharmaceutical production, as Myanmar imports a vast majority of its pharmaceutical supplies from India. To execute these ambitions, entrepreneurs underscored that both governments must enhance policy support and streamline trade remittance systems.

President Min Aung Hlaing also pointed to the ongoing development of the Kaladan Multi-Modal Transit Transport Project (a major international connectivity project between India and Myanmar) and the India-Myanmar-Thailand Trilateral Highway, which is expected to unlock the ASEAN-India economic corridor.

What does this mean for business?

While growing bilateral economic cooperation offers fertile ground for expansion, entering the market requires balancing immense potential against distinct headwinds. On the positive side, India is already Myanmar’s 11^th largest investor, backing 39 active projects worth nearly 800.000 million US dollars across vital sectors like heavy industry, oil and gas, transport and agriculture. Growth potential remains high, heavily cushioned by an operational direct India’s Rupee and Myanmar’s Kyat payment system that eliminates third-currency conversion friction.

However, substantial constraints persist. Severe ongoing political instability and international scrutiny surrounding the regime’s legitimacy and political stability mean foreign investors must carefully navigate heightened compliance, security and reputational risks before fully committing capital.

Kala Advisory helps European investors weigh opportunities like these against the political and compliance risks of frontier markets like Myanmar. Visit kala-advisory.com.