Burma Will Be Regarded As A Potential Investment Destination By India.

According to the India business line (BusinessLine), with the opening up of Burma's economy, it provides access to various fields of trade and investment that can enter India. Burma opens foreign private insurance companies and Singapore transport service company Grab into the Burma market. India has expressed its wish to achieve greater integration under the new neighbouring priority policy, so Burma should actually be its first port of call. Today, Burma is one of Asia's last investment potential markets. Although the two countries have been in contact for several years, their achievements in trade and investment cooperation are not significant. Although there are more than 1600 kilometers of common border, Burma imported only 5% to 6% of its total imports from India, and imported more than 30% from the mainland of China. With regard to Burma's export to India, Burma can find export markets based on India's duty-free tariff preferences.

Because the competition in Burma market is not fierce at present, India's early investors can gain huge market competitive advantage. Burma's infrastructure development has great potential. However, the proportion of India's total investment in Burma from 2011 to September 2019 was very low, only 3.7%. India's largest investment in Burma's coal, oil and natural gas sector once again accounts for only 6% of the total foreign investment in the industry. Taking into account the low development countries in Burma, it has benefited from providing unilateral tax exemption and quota free market access to all exports to the EU. In addition to cooperating with the ASEAN partners, India investors can also use it to establish a base in Burma to enter the ASEAN market. In Burma, such as renewable energy, hotels and communications, India has great investment space. India solar manufacturers and power suppliers can expand this market, especially in the field of off grid small solar power plants.

After the opening of Burma's economy, Telenor and Ooredoo, which came from Norway and Qatar respectively, entered the domestic market monopolized by Burma's state-run MPT, and cut down Telecom rates. With the gradual saturation of India telecom market, there is great room for participation in Burma activities. Health care and education are two other sectors in which India can make long-term contributions, thereby establishing a good reputation among neighbouring countries. Tourism is another area that India can develop. It can make use of the kindness and friendliness of the locals to provide quality and reasonably priced services.

From 2030 to 2030, it is estimated that 30 million people will belong to the middle class. This brings many opportunities for the consumer goods market. According to the global information and market measurement data of Nelson NV, the value of retail industry in Burma in 2018 was about 100-120 billion US dollars, which led to many foreign consumer brands entering the Burma market. Unfortunately, products imported from European and American countries are much more visible than India products. With the enhancement of consumerism, especially in Yangon and Mandalay, the consumer goods industry in India should increasingly expand this market with affordable products. For example, India multinationals can build bases on the border to supply Burma market. Famous brands like Amul and Mother Dairy can easily penetrate into the processing dairy market in Burma.

Burma is the gateway to the Mekong region and is the only ASEAN country connected by land and sea to India. India does not support the initiative of the Chinese mainland. The governments of Burma and India should strive to eliminate investment barriers. India investors should pay more attention to Burma's existing tax concessions, the export advantages of special economic zones and low developed countries. Although India has decided to postpone the signing of RCEP, and hopes to renegotiate its free trade agreement with the ASEAN, India and Burma must work hard to promote bilateral trade and investment.