India Plays Catch-Up on Myanmar as China, S. Korea Rush In

Prime Minister Manmohan Singh seeks to make up lost ground in the charge to secure resources and business ties in Myanmar when he next week becomes India’s first leader to visit its eastern neighbor in a quarter of a century.

India, which in British colonial days oversaw the monetary and financial system of what was then Burma, ranked 13th last year in investments in Myanmar, with $189 million pledged in five projects, according to data compiled by IHS Global Insight.China

led with $8.3 billion, and South Korea, whose president visited Myanmar earlier this month, pledged $2.95 billion.

India is resurrecting ties to a neighbor with 64 million people and reserves of natural gas and lumber, as Myanmar reconnects with the global economy following five decades of isolation during military rule. Also on the agenda for Singh’s three-day trip is cooperation to contain insurgent groups with bases in Myanmar that have sought independence or greater autonomy for some of India’s northeastern states.

Next ‘Frontier’

The Indian prime minister, beset by political challenges at home that have seen his economic agenda stymied and contributed to a sell-off in the rupee, arrives in Myanmar May 27. Singh, 79, will meet Myanmar’s leaders as well as pro-democracy icon Aung San Suu Kyi, according to the Indian Foreign Ministry. He brings a business delegation to discuss trade and investment.

Myanmar Prime Minister Thein Sein’s efforts to end military rule have been rewarded with an easing of U.S. and European sanctions, bolstering prospects for a nation the International Monetary Fund said in January could be “the next economic frontier in Asia.” South Korean President Lee Myung Bak last week pledged to increase aid to Myanmar and the countries agreed to enhance cooperation on energy and developing resources.

Singh will relax terms on a $500 million line of credit, announce a new bus service between India’s northeast and the tourist city of Mandalay and oversee the opening of branches of Indian banks, according to an Indian Foreign Ministry official who asked not to be named because he isn’t authorized to speak publicly on the matter.