Explained | What is the BIMSTEC grouping and how is it significant?

The story so far: The fifth summit of the now 25-year-old Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation hosted by Sri Lanka, was held on Wednesday, March 30, in a hybrid fashion. BIMSTEC’s first Secretary General, Sumith Nakandala, echoed this when he had said, “we are not reinventing the wheel” but just “rediscovering the common heritage around the Bay of Bengal.” According to the official website of BIMSTEC, “the regional group constitutes a bridge between South and South East Asia and represents a reinforcement of relations among these countries.” What makes BIMSTEC different from other regional groupings such as SAARC or ASEAN is that it is a sector-driven organisation. In the 2014 SAARC summit, Prime Minister Modi called for more shared infrastructure and connectivity in South Asia, and said in an indirect reference to Pakistan: “Those who want to come with us, welcome and those who do not, the rest of us will continue.” India had also invited BIMSTEC heads of state for Mr. Modi’s swearing-in ceremony in 2019. Inter-regional trade within BIMSTEC countries also varies significantly; research shows that member countries trade with each other in terms of the proximity, availability of trade routes and the size of the country’s economy. Notably, it was While BIMSTEC members have not adopted a Free Trade Agreement yet, they are involved in multiple bilateral and multilateral free trade, preferential trade and economic cooperation agreements with other countries.