BIMSTEC, Full Form, Establishment, Headquarters, Founding Members, UPSC Notes!

The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is a regional organization established in 1997 to promote cooperation among South and Southeast Asian nations. Headquartered in Dhaka, Bangladesh, BIMSTEC brings together seven member countries—Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand—known as its founding members. It serves as a vital platform for boosting trade, connectivity, and cultural ties in the Bay of Bengal region.

BIMSTEC is one of the most important topics for the UPSC IAS Examination. In this article on BIMSTEC, we shall discuss its history, objectives, principles, challenges & importance for India. This will be very useful for aspirants in the UPSC Prelims Exam.

Download the Last 10 Years UPSC Question Papers with Answers PDF!

Download the Prelims Pointers on BIMSTEC UPSC!

What is BIMSTEC?

BIMSTEC is a regional organization that was established in 1997 to promote cooperation among countries around the Bay of Bengal. It connects South Asia and Southeast Asia, focusing on areas like trade, transport, energy, counter-terrorism, and climate change. It includes both landlocked and coastal nations with shared economic and strategic interests.

The group was initially formed as BIST-EC and later expanded and renamed to BIMSTEC. It serves as a platform for multi-sectoral collaboration through 14 priority areas. The organization aims to enhance regional connectivity, encourage economic integration, and address common challenges through joint efforts and institutional mechanisms.

Historical Background of BIMSTEC

• Initially, in 1997, the organization was formed to enhance economic cooperation and development in an integrated manner among the four countries of Bangladesh, India, Sri Lanka, and Thailand.
• It was formed through the Bangkok Declaration in 1997, and the name ‘BIST-EC’ was given to it, which stands for ‘Bangladesh, India, Sri Lanka, and Thailand Economic Cooperation’.
• Then, in late 1997, its name was changed to ‘BIMST-EC’ when Myanmar was included in the organization.
• Finally, in 2004, the countries of Nepal and Bhutan were also included in the organization and its name was changed to the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC).
• In 2016, the organization’s ‘Leader Retreat’ was held, which was followed by the ‘Outreach Summit in collaboration with the BRICS Leaders in Goa held in October 2016.
• Both these events drew a large amount of international attention.
• Also, the leaders of the BIMSTEC Member States and not SAARC were invited to the second swearing-in ceremony of Indian Prime Minister Narendra Modi in May 2019 as honorary guests.
• A while later, the External Affairs Minister of India, S. Jayashankar, stated that India sees an amalgamation of ‘Energy, Mindset and Possibility’ in the form of BIMSTEC.

Also read: International Organizations and their Headquarters for UPSC here.

BIMSTEC was established with the aim to promote regional cooperation in South and Southeast Asia. Its key objectives are:

• Enhance Economic Cooperation: Facilitate trade, investment, and economic integration among member countries.
• Promote Technical and Sectoral Collaboration: Focus on sectors such as technology, energy, transport, agriculture, health, and tourism.
• Strengthen Connectivity: Improve land, sea, and air connectivity to boost commerce and people-to-people ties.
• Address Common Challenges: Work collectively on climate change, natural disaster management, and environmental protection.
• Foster Peace and Stability: Encourage collaboration for security, counter-terrorism, and maritime safety in the Bay of Bengal region.
• Support Sustainable Development: Promote inclusive growth and socio-economic progress in member states.

Also, read ASEAN for UPSC here.

BIMSTEC Countries

BIMSTEC is made up of seven member countries lying in the Bay of Bengal region, spanning South and Southeast Asia:

• Bangladesh
• Bhutan
• India
• Myanmar
• Nepal
• Sri Lanka
• Thailand

Study the article on Shanghai cooperation organization for UPSC here.

BIMSTEC holds significant importance for various reasons:

• Bridges South and Southeast Asia: It connects two important sub-regions, fostering economic and cultural ties.
• Promotes Regional Integration: Enhances trade, investment, and connectivity to boost regional prosperity.
• Supports India’s Act East Policy: BIMSTEC aligns with India’s strategic interest in engaging with Southeast Asia through infrastructure and economic projects.
• Addresses Shared Challenges: Collaborates on climate action, disaster preparedness, and security challenges unique to the Bay of Bengal region.
• Enhances Maritime Security: Focuses on safeguarding sea lanes vital for trade and energy supplies.
• Boosts Multisectoral Cooperation: Works across sectors including energy, technology, transport, fisheries, and tourism.
• Provides an Alternative to Other Regional Groups: Unlike SAARC, which faces political challenges, BIMSTEC offers a more functional and cooperative platform for regional dialogue.

Study the article on Asia Pacific Economic Cooperation (APEC) for UPSC here.

What is the Importance of BIMSTEC to India?

As SAARC has largely been ineffective due to the differences between India and Pakistan, BIMSTEC provides an alternative mechanism to India to engage with its close neighbors.

• It provides India with the opportunity to promote its three core policies:
  • Act East Policy – To connect India with Southeast Asia
  • Neighbourhood First Policy – To give preference to the immediate neighboring countries of India.
  • Economic Cooperation & Development in the Northeastern States of India – By creating a link between North-Eastern states and countries like Bangladesh and Myanmar via the Bay of Bengal region.
• Helps India to counter the rising influence of China in the countries around the Bay of Bengal region because of the extension of China’s Belt and Road Initiative.
• It helps to integrate not only South Asia & Southeast Asia but also the regions of the Great Himalayas and the Bay of Bengal.
• Also, around 30 crores Indian population, which is around 25 % of India’s total population, live in the four coastal states of Andhra Pradesh, Orissa, Tamil Nadu, and West Bengal, which lie adjacent to the Bay of Bengal region.
• Also, as China is increasingly looking to expand its assertiveness in the Bay of Bengal region by enhancing its submarine presence and ship movements in and around the Indian Ocean region, it becomes very important for India to enhance its regional engagement with the BIMSTEC member countries.
• This organization also helps India to enhance its ‘Sagarmala’ Initiative and ‘SAGAR’ Policy (Security and Growth for All in the Region).

Also, read Asian Development Bank for UPSC here!

Get your facts clear between SAARC and BIMSTEC in the table below:

Study the article on BRICS for UPSC here.

What Challenges does the BIMSTEC Face?

• Countries like Thailand and Myanmar pay more attention to ASEAN as compared to BIMSTEC and countries like India often use this organization majorly as an alternative against the SAARC only.
• BIMSTEC has the mandate to hold summits every two years and ministerial meetings every year, but in the last 20 years, only four summits have been held till 2018, instead of the ten summits that would have taken place ideally.
• As the focus areas of the organization, like public health, agriculture, connectivity, etc are very wide, so sometimes it becomes difficult to focus on each area on an equal footing. That is why it is suggested that the focus areas of the organization should be narrowed down so that cooperation is enhanced,
• The Free Trade Agreement (FTA) of the BIMSTEC hasn’t been finalized till now.
• The Bilateral Issues between the member countries of the organization are rising, which has undermined the strength of the organization. For example, Bangladesh is facing the issue of Rohingya refugees with India, the border conflict between India and Nepal, and also between Myanmar and Thailand.
• The formation of the BCIM (Bangladesh, China, India, Myanmar) Initiative has further undermined the strength and potential of the BIMSTEC.

Study the article on South-South Cooperation for UPSC here.

Way Forward

• In 2018, a report conducted by the Indian Chambers of Commerce and Industry pointed out that the member countries of the organization need to finalize a comprehensive Free Trade Agreement (FTA) urgently in order to boost inter-regional trade and commerce.
• This FTA should ideally cover services, trade in goods, and also investments. It should also enhance regulatory harmonization and endorse policies that promote the regional policy chains while also reducing the non-tariff barriers.
• A balance needs to be created between the security and economy among the BIMSTEC member countries.
• There is a need to simultaneously maintain a secure environment while also promoting economic cooperation between the member states.
• India can follow the ‘Gujral Doctrine’ to waive off the fears and impressions of the member states that BIMSTEC is an India-dominated bloc.
• As the Bay of Bengal region is a powerhouse of diverse cultures and untapped natural resources, the member states need to promote regional collaboration and utilize the available resources in the best and most efficient way possible.

Check out the article Organization of Islamic Cooperation here.

We hope that all your doubts regarding the BIMSTEC will be cleared after going through this article. You can download the Testbook App now to check out various other topics relevant to the UPSC IAS Exam.