Myanmar's economy becoming 'productive' from 'extractive': Indian envoy

With Myanmar's economy moving from being "extractive" to "productive", Indian companies have a good potential to expand their operations in that country in a number of sectors, India's envoy to Myanmar said here on Friday.

Myanmar was trying to move from an "extractive economy to a productive economy and the best businesses are the ones founded on the natural and agricultural resources and they come from agriculture, forests, minerals besides small-scale manufacturing", Indian ambassador Gautam Mukhopadhaya said on the sidelines of an event organised by CII.

The diplomat said Myanmar was in need of infrastructural development including power generation as well as skill development. "Myanmar is growing at a rate of 7-8 percent, it has tremendous natural resources," he said.

He said the Indian government has already invested $1.75 billion in the country of which $750 million has been utilised for developing four infrastructural projects, $250 million has been given for "capacity building" and another $750 million has been given "on lines of credit for infrastructural development".

Asked if Indo-Myanmar bilateral trade can increase from the current $6 million to $10 million, Mukhopadhaya said: "Absolutely, the Indian government offers DFTP (Duty Free Trade Preference) which basically means an Indian company can invest in Myanmar for the Indian market and have access to it with minimal (customs) duty".

He said 96 percent exemption on import duty was given to companies under DFTP.

The envoy said information gap, air connectivity and banking infrastructure to be the major challenges for the country.