Myanmar’s Kachin and Shan states have massive deposits of rare earth elements including dysprosium and terbium used for permanent magnets for EVs, wind turbines, and defence items. The issue of India harnessing rare earths from Myanmar will figure prominently on the agenda of the meeting between PM Narendra Modi and the visiting President here on Monday. The visiting leader will also address a business forum here.
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Currently, Myanmar’s northern neighbour China has been extracting rare earths from the Kachin state, but the visit has provided an opportunity to push its initiative, according to a person familiar with the issue. The Myanmar Army has stepped up its offensive in the border areas which have rare earth deposits, but rebel groups have major influence there.
India-Myanmar bilateral trade has expanded over the years, with annual trade growing 23% to touch $2.15 billion in FY25-Myanmar exports totalled $1.53 billion and Indian exports were at $614.3 million. In particular, pulses exports, comprising about 77% of Myanmar’s exports to India, increased by 29% in FY25. India is the fourth-largest trading partner of Myanmar.
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The rupee-kyat settlement has also been functional since January 2024. The scope for further expanding bilateral trade is significant, particularly if Myanmar could increase fuel and pharmaceutical imports from India under the rupee-kyat mechanism and against its beans and pulses exports in rupees. Indian-made medicines are widely used in Myanmar due to their affordability and quality.
As per the Government of Myanmar’s statistics, India is presently the eleventh-largest investor with an approved investment of US$782.821 million by 39 Indian enterprises, out of the total estimated investments of US$96.05 billion from 53 countries (as on 31st March, 2025).