Bangkok 2025: BIMSTEC at a Crossroad?

Bangkok is hosting the sixth Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Summit. As a historic hub of commerce and cultural exchange, Bangkok has long been a gateway between the Indian Subcontinent and Southeast Asia, much like the Chao Phraya River, which has facilitated trade and connectivity for centuries—an ethos that aligns with BIMSTEC’s vision of regional cooperation.

With a combined GDP exceeding USD 3.6 trillion and a population of 1.8 billion, BIMSTEC represents one of the most dynamic yet underutilized economic corridors in the world. As Bangkok prepares to host the sixth BIMSTEC Summit, the question remains: Can this regional grouping overcome its structural challenges to unlock its full potential?

Established in 1997, BIMSTEC comprises seven member states—Bangladesh, India, Myanmar, Sri Lanka, Thailand, Nepal, and Bhutan—spanning the Bay of Bengal littoral. This geographic and strategic positioning makes BIMSTEC a critical platform for fostering regional integration, economic cooperation, and geopolitical alignment.

Connectivity at Core

Connectivity is at the core of BIMSTEC’s vision to bridge the Indian Subcontinent and Southeast Asia. The organization has prioritised the development of transport corridors, digital infrastructure, and maritime connectivity to enhance regional integration. The India-Myanmar-Thailand Highway (IMT), once completed, will provide a direct land route between India and Southeast Asia, significantly reducing transportation time and costs. Similarly, the Kaladan Multimodal Transit Transport Project (KMPTT) aims to connect India’s northeastern states with the Sittwe Port in Myanmar, providing an alternative route for trade and reducing dependence on the congested Siliguri Corridor.

In the digital realm, BIMSTEC has recognised the importance of enhancing digital connectivity and cybersecurity cooperation. The COVID-19 pandemic has underscored the need for robust digital infrastructure to support e-commerce, remote work, and online education. BIMSTEC’s initiatives in this area, such as the BIMSTEC Master Plan for Transport Connectivity and the BIMSTEC Centre for Weather and Climate, reflect its commitment to leveraging technology for regional development. However, as the digital divide among member states remains a significant barrier, bridging this gap requires coordinated efforts to invest in digital infrastructure and promote capacity-building programs.

Maritime connectivity is another critical area where BIMSTEC can play a transformative role. The Bay of Bengal is a vital maritime zone for global trade, with over 25% of the world’s traded goods passing through its waters. BIMSTEC’s Coastal Shipping Agreement aims to promote maritime trade and reduce transportation costs by facilitating direct shipping routes between member states. However, the lack of standardized regulations and port infrastructure has limited the agreement’s effectiveness. Strengthening maritime cooperation through joint investments in port infrastructure and harmonizing regulatory frameworks could unlock the full potential of the Bay of Bengal as a hub of maritime trade.

BIMSTEC’s geopolitical importance lies in its ability to connect the Indian Subcontinent and Southeast Asia, two regions that have historically been divided by political, cultural, and economic barriers. The Bay of Bengal, viewed as a critical maritime zone for trade, energy security, and strategic influence, links the Indian subcontinent with the Indo-Pacific region. BIMSTEC’s focus on this region aligns with the broader Indo-Pacific strategy being promoted by major powers like the United States, Japan, and Australia. BIMSTEC has also laid increasing emphasis on the regional maritime cooperation, including initiatives like the BIMSTEC Coastal Shipping Agreement, underscoring its potential to enhance regional connectivity and security.

The Economic Opportunity

Beyond infrastructure, BIMSTEC’s success hinges on its ability to foster deeper economic ties and trade linkages among its member states. Economically, BIMSTEC holds immense potential to act as a conduit for trade and investment between the Indian Subcontinent and Southeast Asia. The combined GDP of BIMSTEC member states exceeds US$3.6 trillion, representing a significant market for intra-regional trade. However, trade among BIMSTEC countries remains underdeveloped, accounting for less than 5% of their total trade volume. This underperformance can be attributed to several factors, including inadequate infrastructure, non-tariff barriers, and a lack of harmonized trade policies. BIMSTEC’s Free Trade Agreement (FTA), which has been under negotiation for over two decades, remains incomplete, reflecting the challenges of achieving consensus among member states with varying economic priorities. The lack of a dedicated funding mechanism has also restricted BIMSTEC. Establishing a BIMSTEC Development Fund, modeled after similar initiatives in ASEAN, could provide the necessary financial resources to accelerate regional integration.

Despite these challenges, BIMSTEC has made progress in specific areas of economic cooperation. The organization has identified 14 priority sectors, including trade, energy, transportation, and tourism, to drive regional integration. For instance, the IMT Highway and the KMTTP are key infrastructure initiatives aimed at enhancing physical connectivity between the Indian Subcontinent and Southeast Asia. These projects will not only reduce transportation costs but also open new markets for landlocked countries like Nepal and Bhutan.

A significant analytical lens through which BIMSTEC’s role can be assessed is its potential to mitigate the “missing middle” challenge in regional value chains. While both South and Southeast Asia possess burgeoning manufacturing sectors, the intermediate linkages necessary for seamless integration are often lacking. BIMSTEC, by fostering cross-border investment and promoting the standardization of customs procedures and technical regulations, could bridge this gap. However, this requires a nuanced understanding of the existing trade patterns and investment flows within the region.

Future Prospects

Despite its potential, BIMSTEC faces few challenges that hinder its effectiveness as a regional organization. Unlike ASEAN, which has a strong institutional framework and a culture of consensus-building, BIMSTEC has struggled to achieve meaningful cooperation due to divergent national interests. Its focus on technical and economic cooperation often overlooks the importance of addressing non-traditional security challenges, such as climate change, human trafficking, and transnational crime, underlining a missed opportunity to address the region’s most pressing challenges.

BIMSTEC offers an alternative model of regional integration—one driven by multilateralism rather than bilateral dependence. To realize its full potential, BIMSTEC must adopt a more proactive and inclusive approach to regional integration. Expanding its membership to include other Southeast Asian countries like Indonesia and Malaysia could enhance its geographic and economic reach. These countries have strong maritime and economic ties with the Bay of Bengal region and could contribute to BIMSTEC’s initiatives in areas like maritime security, blue economy, and digital connectivity.

BIMSTEC’s potential as a bridge must also consider the role of non-state actors and civil society. While government-led initiatives are essential, the success of regional integration also depends on the active participation of businesses, academics, think tanks, media and civil society organizations. By focusing on connectivity, trade, and cultural exchange, BIMSTEC can transform the Bay of Bengal region into a hub of economic growth and geopolitical stability. However, achieving this vision requires overcoming structural barriers, fostering political will, and ensuring equitable benefits for all member states. Only then can BIMSTEC emerge as a pivotal regional organization, connecting the two regions in a meaningful and transformative way. However, its success depends on overcoming structural challenges, fostering political will, and ensuring equitable benefits for all member states. The organization’s ability to navigate geopolitical complexities, promote economic integration, and address non-traditional security challenges will determine its role as a connecting point between two of the world’s most dynamic regions.

As the world shifts toward regionalism in an era of geopolitical competition, BIMSTEC stands at a crossroads. Its ability to evolve into a dynamic regional bloc will determine whether the Bay of Bengal will truly become a bridge between South and Southeast Asia.

(Disclaimer: This article was first published in Thai based newspaper named as Matichon Online. The link to the article is as given: https://www.matichon.co.th/international/news_5124478)