Introduction and Background

- BIMSTEC, or the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation, is a regional organisation comprising seven member countries: India, Bangladesh, Bhutan, Nepal, Sri Lanka from South Asia and Myanmar and Thailand from South East Asia.

- The primary objective of this initiative is to facilitate socio-economic development and enhance regional cooperation. 

- The BIMSTEC Free Trade Agreement (FTA) is a crucial component of this initiative and was signed in February 2004. 

The Need for Fast-Tracking the FTA

- The urgency to expedite the BIMSTEC Free Trade Agreement was articulated by the Indian Minister of Commerce & Industry at the BIMSTEC Business Summit in New Delhi. 

- The Minister stressed on kick starting with a preferential trade agreement to boost intra-regional trade and investment, thereby uplifting regional competitiveness. 

India's Trade Relation with BIMSTEC Countries

- The total trade between India and the BIMSTEC nations equaled USD 44.32 billion in the financial year 2023-24, indicating the significant financial integration within this regional bloc. 

- Among BIMSTEC countries, Thailand emerged as India's largest trading partner, with exports and imports valued at USD 5.04 billion and USD 9.91 billion, respectively. 

- Bangladesh came in second, with trade figures presenting a favourable balance for India, marked by exports of USD 11.06 billion and imports of USD 1.84 billion. 

BIMSTEC Free Trade Agreement Elements

- The BIMSTEC FTA includes provisions for negotiation of Free Trade Agreement on goods, services, investment, and economic cooperation among the participating nations. 

- The BIMSTEC countries established a Trade Negotiating Committee particularly to expedite negotiations in line with the Framework Agreement. 

The Significance of BIMSTEC FTA for India

- BIMSTEC offers a strategic advantage for India, as it provides access to fast-growing markets and resources of Southeast Asia and simultaneously negates the geopolitical redundancy of South Asian Association for Regional Cooperation (SAARC).

- It strengthens India's Act East Policy, enhancing its engagement with the economically vibrant Southeast Asian region.

- Accelerating the BIMSTEC FTA also translates to increased economic activities, investment opportunities, and improved competitiveness for the output from this region in the global market. 

Conclusion

- Thus, fast-tracking the BIMSTEC Free Trade Agreement holds immense potential for enhancing regional integration, fostering economic growth, and uplifting the competitiveness of member nations in the global market. The outcomes of this accelerated process would be watched keenly across the globe for the potential impacts and changes it brings to the geopolitical landscape.