In a significant development for regional economic cooperation and strategic engagement, India and Myanmar have agreed to deepen their bilateral trade ties, accelerate flagship connectivity infrastructure projects, and expand cooperation on cross-border security during Myanmar President Min Aung Hlaing’s official visit to New Delhi on June 1, 2026.
Summit Breakthrough
During the talks with Prime Minister Narendra Modi, both leaders reaffirmed their commitment to strengthening economic, connectivity, and security cooperation. According to the joint statement, PM Modi underscored that enhanced connectivity would help foster stronger economic linkages and shared prosperity across the region.
Kaladan and Trilateral Highway Acceleration
Two major regional integration projects were identified for accelerated completion:
The Kaladan Multi-Modal Transit Transport Project — a key Indian initiative designed to link the eastern Indian state of Mizoram to Sittwe port in Myanmar via river, sea, and road transport corridors.
The India-Myanmar-Thailand Trilateral Highway — a strategic road network aimed at boosting cross-border commerce and people-to-people ties across South and Southeast Asia.
Both sides stressed the need to work closely towards the timely completion of these flagship initiatives aimed at boosting regional integration and cross-border commerce.
Rupee-Kyat Settlement Mechanism
In a significant development for monetary cooperation, the two countries agreed to facilitate and expand bilateral trade through the rupee-kyat settlement mechanism.
Both sides welcomed the steady growth in transaction volumes under the arrangement since it became operational in May 2024. The mechanism allows businesses in both countries to conduct trade in their respective currencies, bypassing reliance on third-party currencies and reducing transaction costs.
Scholarships and People-to-People Ties
In a move aimed at strengthening educational and people-to-people ties between the two countries, India announced that the number of Mekong Ganga ICCR (Indian Council for Cultural Relations) scholarships available to Myanmar students would be increased from 36 to 100 scholarships from 2026 onwards.
Strategic Context
The discussions underscore India’s growing strategic interest in deepening economic and infrastructure engagement with Myanmar, particularly as New Delhi seeks to expand its influence in Southeast Asia and diversify regional supply chains.
The connectivity projects and monetary arrangements signal a broader pattern of India’s deepening economic integration with its eastern and southern neighbors, complementing its Act East policy and broader Indo-Pacific strategy.
Sources: The Economic Times; Economic Times (India eyes Myanmar rare earths)