Trump Tariffs Make India Guardian Angel of BIMSTEC
Leaders at BIMSTEC Summit Group photo (Image credit PMO India)
Modi Shares Stage with Yunus of Bangladesh at BIMSTEC
By Manish Anand
New Delhi, April 4: Prime Minister Narendra Modi has emphasized needs for regional cooperation at BIMSTEC Summit in Bangkok. Modi addressed the sixth Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Summit in Bangkok.
The Prime Minister underscored India’s commitment to enhancing regional development, connectivity, and economic progress in the Bay of Bengal region. “We reaffirm our commitment to boosting cooperation across diverse sectors. May our efforts bring a positive difference in people’s lives,” Modi said in a post on X on Friday, tagging a group photograph of the leaders of the member nations.
The BIMSTEC Summit took place in the shadow of US President Donald Trump announcing reciprocal tariffs. Modi shared stage with Chief Advisor of the Interim Government of Bangladesh Muhammed Yunus.
Modi and Yunus were seen sitting together at the BIMSTEC Summit deliberations. It’s not yet known if Modi and Yunus held any discussions separately.
In his departure statement prior to the summit, Modi highlighted the significance of BIMSTEC, stating, “Over the past decade, BIMSTEC has emerged as a significant forum for promoting regional development, connectivity, and economic progress in the Bay of Bengal region.”
India, Bangladesh, and Thailand are three big constituent nations of BIMSTEC. Diplomatic community claims that BIMSTEC is India’s response to filling the vacuum of now defunct SAARC.
Bangladesh, reeling under economic crisis, faces a whopping 37 per cent reciprocal tariffs. Experts claim that Bangladesh’s textile industries may implode with crippling tariffs on exports. Textile exports have been the lifeline of the Bangladesh economy.
During the summit, Modi participated in discussions aimed at adopting the ‘Bangkok Vision 2030’ and agreements on maritime transport cooperation. Bangladesh took over the BIMSTEC chairmanship from Thailand.
Modi sat alongside Yunus, during an official dinner hosted by Thai Prime Minister Paetongtarn Shinawatra. Bangladesh and Thailand are likely to be the worst hit nations due to the reciprocal tariffs within the BIMSTEC grouping.
India being the largest economy in BIMSTEC now holds the pivot to which the constituent nations may look upon for the economic stability. Smaller nations such as Nepal and Bhutan also face economic stress, also for the reason that Trump stopped the USAID funding, which had been running social sector programmes in the smaller nations.
Baring Bangladesh, India has cordial relations with constituents of BIMSTEC. Earthquake-hit Myanmar is likely to be more dependent in India for relief and reconstruction efforts.
Nepal is in the midst of a movement for the restoration of royalty. Nepal is also battling acute economic crisis. Bhutan remains a trusted friend of India.
Within BIMSTEC, the US has served India with the lowest tariff of 26 per cent. Also, India is likely to gain heft amid Sino-US trade war. The spillover effects of the US-China trade war are likely to being gains for India.
The BIMSTEC constituent nations may seek India support to tide over the economic crisis in the wake of reciprocal tariffs. Diplomatic community asserts that Bangladesh will need to recalibrate relations with India to survive the Trump tariffs.
An integration with the Indian market may emerge as a hope for Bangladesh, Thailand, Myanmar, Nepal, and others. China while battling imploding effects of Trump tariffs may be tied domestically to offer any succour to the smaller nations of BIMSTEC.
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