India, Myanmar agree to enhance bilateral trade in national currencies

India and Myanmar today (1 June) agreed to enhance bilateral trade using their national currencies and explore greater investment cooperation in the agro-processing, petroleum, energy and mining sectors.

The Indian Rupee-Kyat settlement mechanism has been in place since May 2024.

Bilateral trade between India and Myanmar stood at $2.5 billion in FY2025, of which Myanmar's exports accounted for $1.53 billion and India's exports for $614.3 million. India is Myanmar's fourth-largest trading partner.

"Both sides also expressed support for closer trade and investment cooperation in areas of mutual interest such as agro-processing, petroleum, energy and mining sectors," a joint statement said following talks between Indian

Prime Minister Narendra Modi and visiting Myanmar President Min Aung Hlaing, who is on his first official visit to India since assuming office in January.

Myanmar is estimated to possess substantial deposits of rare earth minerals in Shan and Kachin states, currently being extracted by China for use in electric vehicles and defence equipment.

During their talks, Narendra Modi and Min Aung Hlaing reviewed bilateral, regional and global issues of mutual interest and charted the way forward for the relationship.

The two leaders underlined that enhanced connectivity would foster mutually beneficial economic linkages and shared prosperity in the region, and stressed the importance of working closely to complete the Kaladan Multi-

Modal Transit Transport Project and the India-Myanmar-Thailand Trilateral Highway.

Modi reaffirmed India's support for Myanmar's sovereignty and territorial integrity, and both sides underscored the importance of preventing the misuse of sovereign territory for activities detrimental to their security interests, according to the joint statement.

The Myanmar president reiterated his country's assurance that its territory would not be allowed to be used against India's security interests.

"The prime minister affirmed that India, as a steadfast and trusted partner of Myanmar, remained committed to deepening security cooperation between the two countries," the statement said.

Modi conveyed India's support for Myanmar-led efforts to achieve peace, stability, national reconciliation and socio-economic development and offered continued assistance and cooperation.