MARCHANG REIMEINGAM
Seminar on Opening up, Co-operation and Economic Growth, Organised by SASS,
Chengdu, China, 24-25th October 2013
Abstract: Moreh in Manipur
(India), locating adjacent to the Namphalong Sagaing Division (Myanmar), serves
as the major border trading hub in the North East India lying along the
India-Myanmar border. North East Region (NER) of India is considered as the gateway
to South, South East Asian, Association of Southeast Asian Nations (ASEAN)
economies. Moreh has an immense prospective for international trade and
commerce through its borders. Both border trade and normal trade are practiced through
Moreh. Using secondary data and literature the paper attempted to examine the
nature of border trade practices and prospective by linking Moreh market with
the counterpart Namphalong market in order to establish that border trade is
immensely linked with the third economies like China which actually supply
goods. The paper begins by broadly highlighting the situation of border trade
and haats in the region. Then the two commercial hubs at the Indo-Myanmar
border namely Moreh and Namphalong market are specifically discussed. The
development and importance of Land Custom Station (LCS) and Integrated Check
Post (ICP) in Moreh are examined. The value of Moreh border trade accounts to two
percent of the total India-Myanmar trade. The volume of trade is affected by
the bandh and strikes, insurgency, currency exchange rate and smuggling that
led to an economic lost for traders and economy at large. India experiences a
negative trade balance as the potential export items are not produced in Moreh
area that necessitates the establishment of special economic zone in Moreh for
producing exportable goods. China contributed considerably at the
Moreh-Namphalong border trade as many cheap items such as electronic items or
blankets which are sold at Namphalong market originated from Shweli in Yunnan
Province in China as China is the largest Myanmar’s border trade partner. Establishment
of Indo-Myanmar border trade through Moreh has benefited the local border people
in terms of employment, infrastructural development and also improves trade and
other relationship between India and Myanmar. Myanmar is critical for India not
only for border trade partner but also for India’s Look East Policy for
developing strategic and economic relations with East and South East Asian
countries.
