Yangon (AsiaNews/Agencies) - On the first full day of his three-day visit to Myanmar, Indian Prime Minister Manmohan Singh met Burmese President Thein Sein. The two leaders emphasised the importance of trade agreements, cultural exchanges and better communications (by land and air) between the two countries. This is first visit by an Indian prime minister to the ex Burma in 25 years.
The two men discussed Indian development projects in Myanmar, which come as grants and concession loans worth US$ 1.2 billion. They signed a memorandum of understanding on an additional US$ 500 million line of credit extended by India for more projects to benefit the people of Burma, especially in agriculture, irrigation, rail transportation and electric power.
Thein Sein and Manmohan Singh also announced that India would repair and upgrade 71 bridges on the Tamu-Kalewa friendship Road, which connects India, Myanmar and Thailand.
The two sides agreed to improved land and air connectivity. A trans-border bus service will connect Imphal, India, to Mandalay, Myanmar. Similarly, a new Air Service agreement was signed, expanding direct air links.
In the border area, India agreed to upgrade roads and agricultural initiatives as well as build schools, health centres and bridges.
A joint working group has identified some priority areas for future cooperation in the fields of agricultural biotechnology, post-harvest technology, medical biotechnology, medical research and renewable energy.
A Myanmar Institute of Information Technology with financial and technical assistance from India will be established.
The two sides confirmed the mutually agreed target of doubling bilateral trade by 2015.
With an emphasis on the considerable untapped potential for greater trade, the two leaders urged the business community to capitalise on this potential.
Investments by Indian companies in areas like ports, highways, oil and gas, plantations, manufacturing, and hospitality will be specifically encouraged.
The two men also promised to work to identify and remove various impediments to bilateral trade. In this context, they welcomed the establishment of a representative office of the United Bank of India in Rangoon as a first step in facilitating business-friendly banking transactions between the two countries.
All this activism by India reflects the 'Look East policy' New Delhi has adopted to counter the hegemony of China, the world's second largest economic power.
In fact, Beijing remains Myanmar's main trading partner, but recent overtures by the Burmese government have favoured the arrival of new competitors in what is a potentially promising market, especially since the partial lifting of US and EU sanctions.