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Myanmar Offers Growth Opportunities To Indian Companies

Myanmar
Offers Growth Opportunities To Indian Companies
Stock Market2 min read


Indian Prime Minister Narendra Modi is slated to attend the East Asia summit in Myanmar in November. Speculations are rife that investments that will be made in the country.
According to a senior official of Indo-Myanmar Chamber of Commerce and Industry, several Indian companies may expand enormously in Myanmar. He said that “There is little happening on that front. While we have been getting queries from Indian firms regarding business opportunities in Myanmar, we cannot really call them substantial yet.”

He further added that Myanmar is strategically important for India both economically and politically. “India, if it is successful in making inroads to Myanmar, can to a large extent control insurgency in the Northeast,” said the official.

It should be noted that FMCG firms are aggressively exploring the consumer products market in Myanmar. Several consumer products giants have entered into agreements with local distributors in order to cater to the rising consumer needs in the market. Some of these sectors include consumer goods, auto parts and pharmaceuticals.

Apart from these sectors, banking, infrastructure and transport also hold tremendous potential for Indian companies. At present, state run banks such as State Bank of India, Punjab National Bank and United Bank of India have representational office in the country. It was expected that investments would be made in the banking sector but nothing has been done so far.

The country also requires huge investments in roads, hospitality, medicine, telecom and aviation among others. “Only a few Indian firms are present in these sectors. Indian companies can establish a strong base in Myanmar but they are not harnessing the full potential of these sectors. Myanmar needs good commercial vehicles for transportation. And Indian commercial vehicles have been received well in the market”, stated the official.

Currently, Indian companies such as Telecommunications Consultants India Limited, GAIL India, ONGC Videsh, Essar, Indian Railway’s Rites, J K Paper, VNL, Godrej and Jubilant Energy have a presence in the country. FMCG giant Coca-Cola too has entered into a partnership with local distributors for distribution of its products in the country.

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