By Shanker Man Singh

The Sixth  Summit of Heads of State/Government of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) recently concluded in Bangkok, with the countries of the Bay of Bengal region looking forward to further economic integration and connectivity.

BIMSTEC comprises seven countries in the Bay of Bengal region, namely Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand. The leaders of the member states endorsed the BIMSTEC “Bangkok Vision 2030” – the highlight of the summit, which focuses on economic integration, connectivity and human security and outlines a strategic plan to build a prosperous, resilient and open “Pro-BIMSTEC” by 2030.

        The 6th BIMSTEC Summit Declaration and the Rules of Procedure for the BIMSTEC Mechanism were also issued, which reaffirmed the commitment of the member states to: Reaffirms and provide a more systematic and rules-based framework for the operation of BIMSTEC, ensuring greater efficiency and stability.

        The BIMSTEC Eminent Persons Group’s report on the future direction of BIMSTEC was also unveiled during the summit, which provided key recommendations aligned with the “BIMSTEC Bangkok Vision 2030”.  An agreement on maritime transport cooperation was signed. It is expected to strengthen maritime connectivity between South and Southeast Asia, improve logistics efficiency, reduce trade costs and increase the movement of goods and people.

        The meeting also endorsed a joint statement by BIMSTEC leaders on the impact of the earthquakes in Myanmar and Thailand. In short, the agreement on maritime transport cooperation is expected to reduce shipping costs and improve supply chain efficiency.

        As SAARC fades on the subregional front, the time has come for grouping. The unique regional grouping, which brings together five South Asian countries (India, Bangladesh, Nepal, Bhutan and Sri Lanka) and two Southeast Asian countries (Thailand and Myanmar), held its long-awaited sixth summit in Thailand from April 1-5, 2025.    Although established in 1997, BIMSTEC adopted its basic charter only in 2022, reflecting its historically slow progress. However, BIMSTEC has emerged as a potential alternative for regional cooperation as the South Asian Association for Regional Cooperation (SAARC) has remained dormant due to India-Pakistan tensions.

        India, in particular, has been actively working to elevate the role of BIMSTEC, although officials say SAARC could be revived in the future. Prime Minister KP Sharma Oli led Nepal’s delegation to the summit.

        During the summit, Prime Minister Oli held bilateral meetings with Indian Prime Minister Narendra Modi and reportedly discussed the potential for further progress in regional diplomacy.    As BIMSTEC seeks to overcome years of sluggish progress, the summit could usher in a new chapter in regional cooperation, connecting South Asia and Southeast Asia more effectively than ever before. The Bay of Bengal Multi-Sectoral Technical and Economic Cooperation (BSMETC) has completed 28 years of its journey, which began in Bangkok in June 1997.

        Nepal-Thailand Relations

        Two government and six non-government agreements were recently signed in the presence of Prime Minister Oli, who was on an official visit to Thailand on the eve of the BIMSTEC Summit and the Thai Prime Minister.

        The agreement between the two countries aims to strengthen trade relations between Nepal and Thailand, promote economic cooperation, and prepare a structured framework for expanding trade and investment.

        It is also believed to further strengthen trade cooperation between the two countries and make a significant contribution to expanding economic cooperation.

        Among the agreements signed between the governments of Nepal and Thailand: the Cultural Agreement, and Tourism Cooperation Agreement are the most prominent, while non-governmental agreements include: An agreement on mutual cooperation between Nepal Netrajyoti Sangh and Ramathibodi Hospital under Mahidol University for the development and expansion of eye treatment services, an agreement on mutual cooperation and trade promotion between the Federation of Nepalese Chambers of Commerce and Industry and the Thai Chamber of Commerce and Board of Trade, an agreement between Janata Agro and Forestry and Kasetsart University, an agreement between Kathmandu University and Siam University, an agreement between the Confederation of Nepalese Industries and the Federation of Thai Industries, an agreement between the Nepal Chamber of Commerce and the Tourism Council of Thailand have been signed.

        BIMSTEC represents about 1.7 billion people and a combined GDP of $ 3.8 trillion, which can accelerate economic development through greater integration. In the past, the government of Nepal had introduced an integrated foreign policy that reflected rapid changes in both the domestic and geopolitical spheres. Foreign policy has shifted from traditional diplomacy to a modern policy with ‘economic diplomacy’ as the main driver.

        SAARC needs to be revived, even after putting aside differences among its members. Areas of common interest need to be explored.

SAARC: Revival

        The 18th SAARC Summit was held in Nepal in 2014. The 19th Summit to be held in Pakistan has not progressed since then. Other regional organizations have made significant achievements, so SAARC should not lag behind in translating its vision into reality.

        Development and Prosperity. Nepal became a member of BIMSTEC in 2004. BIMSTEC serves as an important bridge connecting Nepal with South and Southeast Asia to expand its trade, economy, business, investment, and cultural connections.    However, due to the unstable internal political environment, Nepal has not been able to utilize the regional forum to advance its national interests.

        Trade and Transit Landlocked Nepal lacks internal maritime access and is dependent on India for third-party access through the ports of Kolkata, Haldia, and Visakhapatnam. However, Nepal faces high tariffs and delays in cargo arrivals due to the unavailability of deep sea port services in India.

        With its successful arrangement, Nepal will have the opportunity to use deep sea ports in BIMSTEC member countries outside India. To diversify its connectivity and reduce its dependence on India, Nepal has signed a transit agreement with its northern neighbor China.

        Still, due to geographical conditions, the crumbling infrastructure on the Nepal side, the distance between Chinese ports and Nepal, the potential for Nepal’s third-party trade from Chinese ports and comparative advantages are still unknown. For example, the nearest Chinese port, Tianjin, is about 4,000 km from the Nepal border – four times further than India’s Kolkata port.       Currently, the countries are negotiating the BIMSTEC Coastal Transport Agreement and once it is implemented, all cargo movement between member countries will be done through cost-effective, environmentally sustainable methods. Connectivity, a potential game-changer In August 2018, Nepal hosted the fourth BIMSTEC summit in Kathmandu. As a result, the BIMSTEC grid interconnection was established and an MoU was signed to prioritize multidimensional connectivity where trade and investment will serve as key enablers for economic integration in the region.    Nepal also needs to harness its 45,000 MW hydropower capacity to support such connectivity and integration. The electricity generated can be sold to BIMSTEC member states that are hungry for energy.  Nepal should propose to establish a BIMSTEC energy fund and allow public-private partnerships to bring in investment and technical expertise in power projects.

        Transport connectivity could be another area for free flow of trade within the sub-region. Landlocked Nepal should be connected to Southeast Asia through road networks.

        This will allow for the influx of tourists to Nepal, a tourist destination for Southeast Asian Buddhists and those visiting Mount Everest. The second ministerial meeting held in Dhaka in December 1998 granted Nepal observer status.

        Nepal and Bhutan were then granted full membership in 2003. At the first summit on 31 July 2004, the leaders of the grouping agreed that the name of the grouping should be known as BIMSTEC or Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation.

        Its headquarters are located in Dhaka, Bangladesh. It covers trade, investment, technology, tourism, human resource development, agriculture, fisheries, transport and communication, textiles, leather, etc. BIMSTEC Priority Areas BIMSTEC has 14 priority areas covering all sectors of cooperation.

 Six priority areas of cooperation were identified at the second ministerial meeting held in Dhaka on 19 November 1998. Trade and Investment, Transport and Communications, India-led, Energy, Myanmar-led, Tourism, India-led, Technology, Sri Lanka-led, Fisheries, Thailand-led.

         Since the 8th Ministerial meeting held in Dhaka on December 18-19, 2005, many new areas of cooperation have emerged. The number of priority areas of cooperation has increased from 6 to 14.

        Prime Minister KP Sharma Oli and his Indian counterpart Narendra Modi have met in Bangkok, Thailand. The meeting took place after the conclusion of the 6th BIMSTEC Summit. After the meeting, Prime Minister Oli said on his account on the social network X (formerly Twitter), ‘Our discussions were very meaningful and constructive. "We discussed various aspects of India-Nepal friendship, especially in areas like energy, connectivity, culture and digital technology,"

Indian Prime Minister Modi said on his Twitter account.

        The two leaders had extensive discussions on bilateral cooperation including trade, cross-border transport, energy cooperation and development projects, the Ministry of External Affairs said.

        Indian Prime Minister Modi reiterated India's support for Nepal's development goals and stressed the need to further expand cooperation, giving priority to the hydropower, infrastructure and tourism sectors.         Overall, the Prime Minister's recent visit provided an opportunity to discuss bilateral and multilateral relations, as well as relations with India at the Prime Ministerial level, through sideline talks.