Indian companies to make up for lost time with $2.6-bn investment

Though somewhat late in entering a neighbouring country that is emerging from the shadows of military dictatorship, India seems to be determined now to make up for lost time. 

At present, Indian investments in Myanmar stand at around $273.5 million. This is expected to soar to $2.6 billion in the next few years. India-based multinationals already present in Myanmar include the state-owned ONGC Videsh Limited (OVL), Jubilant Oil and Gas, Century Ply and Tata Motors.

The first meeting of the India-Myanmar Joint Trade Committee, took place on June 7. 

“Of Myanmar’s total trade volume of over $18 billion, India accounted for around 7.5 per cent [in 2011-12] and India is behind China, Singapore, Thailand and Japan in exports to Myanmar,” DS Rawat of India’s Chambers of Commerce said.

India-Myanmar bilateral trade has expanded significantly from $12.4 million in 1980-81 to $1.07 billion in 2010-11. In the oil and gas sector, the Myanmar government has shortlisted 59 companies for submission of final bids for 18 onshore gas blocks on offer. Seven Indian companies are part of those shortlisted. OVL and GAIL have already announced $1.33 billion investments in the China-Myanmar gas pipeline project. The construction of two parallel pipelines for gas and oil has been awarded to India’s Punj Lloyd. It involves an investment of $475 million to construct the 200km-long Kyaukphyu-Kunming Oil & Gas pipeline.