By M A Hossain
BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) is one of those regional groupings that should matter far more than it does. Encompassing Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand, the bloc represents 1.7 billion people and a collective GDP exceeding $4 trillion. Yet, despite its economic and strategic potential, BIMSTEC remains underdeveloped—overshadowed by the inefficiencies of SAARC and the dominance of ASEAN. With the 2025 BIMSTEC Summit in Bangkok approaching, India, as the region’s largest economy, faces a pivotal moment. Will it take decisive action to transform BIMSTEC into a dynamic force for economic integration, connectivity, and security? Or will it allow the bloc to drift further into irrelevance? The choice will define the future of regional cooperation in South and Southeast Asia.
BIMSTEC was established in 1997 with high hopes. Unlike SAARC, which has been crippled by Indo-Pakistani tensions, BIMSTEC offered an alternative platform for regional cooperation. The Bay of Bengal—historically a thriving maritime hub connecting South and Southeast Asia—was envisioned as a new axis of trade and connectivity. In its early years, BIMSTEC appeared promising. The first Summit in 2004 laid out an ambitious roadmap for trade, infrastructure, and security cooperation. However, the momentum soon faded. High-level meetings became sporadic, and major initiatives, such as the BIMSTEC Free Trade Agreement (FTA), stagnated in bureaucratic limbo. Fast-forward to today, and BIMSTEC still struggles with the same foundational issues—weak institutions, lack of funding, and an absence of political will. Yet, despite its sluggish progress, the bloc remains strategically vital, particularly in the context of India’s Act East Policy and China’s growing influence in the Indo-Pacific.
The region’s significance lies in its geographic and economic potential. The Bay of Bengal connects South and Southeast Asia, acting as a natural conduit for trade and investment. The member states account for nearly 22 percent of the world’s population and boast some of the fastest-growing economies. If fully operational, BIMSTEC could serve as a critical trade and transit hub, enhance regional energy security, and strengthen maritime cooperation. It could also act as a counterweight to China’s expanding influence in the region. Yet, these potential advantages remain largely untapped due to systemic obstacles. The biggest challenge BIMSTEC faces is not external pressure but internal complacency. The lack of sustained political commitment has prevented member states from prioritizing the organization. India, despite being the dominant economy, has historically failed to provide leadership. Smaller members remain wary of India’s economic weight, and Myanmar’s ongoing political crisis adds further instability to the region.
Structural weaknesses further undermine the organization’s effectiveness. Unlike ASEAN, which operates under a legally binding framework, BIMSTEC lacks an enforceable charter. Its secretariat in Dhaka remains underfunded and politically marginalized, making coordination difficult. The absence of strong institutions means that decisions are often made but rarely implemented. At the same time, inadequate infrastructure continues to hinder connectivity within the region. Despite years of discussions, major projects such as the India-Myanmar-Thailand Trilateral Highway remain incomplete, stalling trade and investment. Non-tariff barriers, inefficient customs procedures, and poor logistics continue to slow regional commerce.
If BIMSTEC wants to evolve into a functional economic bloc, it should take lessons from ASEAN. Despite its internal diversity, ASEAN has successfully fostered economic integration through a legally binding charter, an effective free trade agreement, and strong institutional mechanisms. BIMSTEC, by contrast, lacks both a clear legal foundation and a well-defined economic agenda. The long-delayed BIMSTEC Free Trade Agreement remains a glaring example of how the bloc has failed to leverage its own market potential. Meanwhile, as BIMSTEC struggles to define its role, China has aggressively expanded its influence in the region. Through the Belt and Road Initiative, Beijing has entrenched itself in BIMSTEC economies by financing ports, highways, and power projects. In Myanmar, China’s investment in the Kyaukphyu deep-sea port gives it strategic access to the Bay of Bengal. In Sri Lanka, the Hambantota port, leased to China for 99 years, exemplifies Beijing’s debt diplomacy. In Thailand, China’s high-speed rail projects signal increasing economic dependence on Beijing. If India does not take decisive action, BIMSTEC could gradually fall under China’s strategic influence.
As the region’s largest economy, India has the most to gain from a revitalized BIMSTEC—and the most to lose if the organization remains ineffective. Strengthening BIMSTEC’s institutions should be a priority. A more empowered and well-funded BIMSTEC Secretariat with an expanded mandate would improve execution. India must also push for a legally binding framework to enhance accountability. Trade and investment within the bloc must be accelerated by finalizing the long-pending BIMSTEC Free Trade Agreement, streamlining customs procedures, and reducing non-tariff barriers. Completing major transport corridors such as the India-Myanmar-Thailand Trilateral Highway and improving digital connectivity should be prioritized. Investments in ports, railways, and energy grids will make regional trade smoother and more efficient.
Security cooperation must also be strengthened. BIMSTEC members face shared threats, including terrorism, drug trafficking, and cybercrime. Establishing a coordinated security framework, conducting joint military exercises, and enhancing intelligence-sharing mechanisms would improve regional stability. Climate resilience is another area where BIMSTEC needs to act. The Bay of Bengal is highly vulnerable to climate-induced disasters. A BIMSTEC Disaster Response Mechanism, backed by a dedicated regional fund, could improve preparedness and recovery efforts.
The upcoming 2025 BIMSTEC Summit is more than just a diplomatic gathering—it is a defining test of India’s regional leadership. BIMSTEC has spent decades in a state of dormancy, where grand declarations rarely translate into meaningful action. But the region cannot afford further stagnation. If India steps up—with financial backing, diplomatic engagement, and strategic execution—BIMSTEC could finally fulfill its potential as a powerful economic and geopolitical bloc. If not, it risks going the way of SAARC: a well-intentioned but ultimately ineffective forum.
Revitalizing BIMSTEC is not just about fostering regional cooperation—it is a strategic necessity for India. With China’s expanding footprint and ASEAN’s growing economic clout, a weak BIMSTEC will only leave South Asia further isolated in the global order. India has a choice: to lead BIMSTEC into a new era of prosperity or let it languish in irrelevance. The time to act is now.
(The writer is a political and defense analyst based in Bangladesh. He can be reached at: writetomahossain@gmail.com)
