UPSC foundations · Note 116
BIMSTEC: India's Bay of Bengal grouping beyond SAARC
Study context: GS II — India and its neighbourhood — relations; bilateral, regional and global groupings and agreements involving India and/or affecting India's interests; effect of policies and politics of developed and developing countries on India's interests, Indian Diaspora.
The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation, or BIMSTEC, brings together Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand. It was founded in 1997 in Bangkok and takes its name from the Bay of Bengal that connects most of its members. Its sectors include trade, transport, energy, tourism, agriculture, environment, disaster management, public health, counter-terrorism and people-to-people contact, reflecting a broad agenda rather than a single trade deal.
BIMSTEC gained importance for India as the South Asian Association for Regional Cooperation, or SAARC, stalled after its last summit in 2014, with the next summit cancelled amid tensions between India and Pakistan. BIMSTEC excludes Pakistan and Afghanistan and includes Thailand and Myanmar, linking South Asia with Southeast Asia. For India, it offers a regional forum that can discuss connectivity, coastal shipping, power trade and disaster response without the India-Pakistan deadlock that has affected SAARC.
The grouping adopted its Charter in 2022, giving it a formal institutional structure, including a secretariat in Dhaka, a rotating chairmanship and a mechanism for summits and ministerial meetings. A framework agreement on a free trade area has been under negotiation for many years, with agreements on goods, services and investment discussed separately, but a comprehensive free trade agreement has not been concluded. Progress has been faster on subjects such as disaster management, counter-terrorism cooperation and transport connectivity.
BIMSTEC's limits are also clear. Myanmar's internal crisis since 2021 has complicated meetings and projects, member economies differ greatly in size, and the grouping lacks the enforcement mechanisms of a trade bloc. Its value may therefore lie less in a single agreement than in practical cooperation: a road, a power line, a disaster warning system or a joint exercise that would not happen through bilateral talks alone, and that directly benefits coastal communities and border regions.
Key takeaways
- BIMSTEC, founded in 1997 in Bangkok, brings together Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand.
- It gained importance as SAARC stalled after its last summit in 2014, offering India a forum linking South and Southeast Asia without Pakistan.
- BIMSTEC adopted its Charter in 2022, with a secretariat in Dhaka, but a comprehensive free trade agreement has not been concluded.
Why it matters for civil studies
BIMSTEC shows that regional cooperation can be rebuilt around a different map when an older grouping stalls — but a new map alone does not guarantee results.
Think it through
Should India invest more in BIMSTEC or try to revive SAARC, and what does each choice cost in relations with neighbours?
From the Public Notes companion study collection. Editorial context and corrections.