Indian Economy News

India and Myanmar have inaugurated Sittwe Port to enhance regional trade and connectivity

India and Myanmar on May 9, 2023, inaugurated the Sittwe Port in Rakhine State, marking a significant milestone in enhancing bilateral and regional trade, as well as contributing to the local economy of the state.

Greater connectivity, job opportunities, and improved growth prospects in the area will all result in Sittwe Port becoming operational.

Both Myanmar's Deputy Prime Minister and the Union Minister for Transport & Communications, Admiral Mr. Tin Aung San, and the Union Minister for Ports, Shipping, & Waterways and AYUSH, Mr. Sarbananda Sonowal, were present at the opening ceremony. The first Indian cargo ship, which departed from Kolkata's Syama Prasad Mookerjee Port, was received by the two ministers.

The initiative, according to the ministry, was designed to offer Mizoram an alternate connectivity with Haldia, Kolkata, or any other Indian ports via the Kaladan River in Myanmar.

The project calls for land transportation from Mizoram to Paletwa in Myanmar, then inland water transportation (IWT) from Paletwa to Sittwe, and ultimately maritime shipping from Sittwe to any port in India. The Kaladan Multi-Modal Transit Transport Project (KMTTP), funded by grant-in-aid support from the Government of India, includes the development of the Sittwe Port. The KMTTP's waterway and road components will connect India's east coast to the north-eastern states via the Sittwe port, once completely operational.

The expansion of Sittwe Port is anticipated to increase trade between the two countries and support regional economic growth. The port is strategically significant for India's Act East Policy, which intends to strengthen ties with the Asia-Pacific region because of its location.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.