In order to stimulate bilateral trade, the Indo-Myanmar Chamber of Commerce and Industry is organising the SME India 2007 small and medium-sized trade fair in Yangon on 25 November. The majority of pulses in India come from Myanmar, which accounts for 60% of India`s global supply. However, India is having difficulty negotiating the importation of pulses from Myanmar, as private distributors dominate the neighbouring country`s market. They tend to raise prices when they learn that the Indian government intends to import the pulses. The government is aware of these intricacies, but it has no other way to remain dependent on Myanmar, to control rising pulse prices and to address its bottlenecks. Border markets are open weekly from Monday to Thursday and from 7:30 a.m. to 3:30 p.m. Indian time, and from 10 a.m. to 6 p.m.
Chinese time would be the dates of border trade. Under the India-Myanmar Free Trade Agreement, only 22 items can currently be exported and imported. These include grinding seeds, legumes and beans, fresh vegetables, fruit and soybeans. On the other hand, India delivers clothing, shoes, medicines, wool and technical goods to Myanmar. These items are in high demand in Myanmar. The 1994 bilateral border agreement provides for the implementation of border trade at three designated border points, one in Manipur, Mizoram and Nagaland. Bilateral trade between India and Myanmar is extremely low relative to total trade between the two countries and accounts for less than 1% of total trade between India and Myanmar between 2011-12 and 2017-18. This is because formal trade on a limit at high transaction costs is linked to factors such as poor connectivity, lack of high-quality infrastructure crossing points, non-tariff trade financing institutions, and widespread blackmail on informal/incidental (insurgent) payments. Tax-exempt products that are exempt from imports from China to India through border trade: the absence of seeds between designated banks on both sides, export restrictions as well as barter products and cross-border uprisings are cited as major obstacles to two-way trade. Cooperation in the banking sector, which is essential for investment and trade, is constantly increasing.
United Bank of India and EXIM Bank have representations in Yangon. In March 2016, the State Bank of India received a commercial banking licence and began operations. SBI is one of 13 foreign banks operating in Myanmar. India and Myanmar have several institutional mechanisms in place to ensure regular consultations between the two governments. The Foreign Ministry`s consultations are chaired by Myanmar`s Foreign Minister and Permanent Secretary. Trade issues are discussed in the Joint Committee on Trade (JTC), which is held at the level of trade ministers. Joint working groups are being developed to discuss cooperation in border trade and borders, railways and shipping. JWs have also recently been set up to discuss cooperation in the energy and health sectors. In order to further facilitate bank staffing, the two banks are connected by telephone. The central government is reviewing the investigation report carried out by Manipur telecommunications officials on telephone lines between Moreh and Tamu banks.
As soon as this facility is put into service, the exchange of cash will not only become legal, but much easier.