India to provide $500 million line of credit to Myanmar

India on Monday announced that it will provide a 500 million-dollar line of credit to Myanmar as the two countries signed agreements on a range of sectors, including air services, beginning a "new journey" of bilateral cooperation.

On the first visit by an Indian prime minister to Myanmar in quarter of a century, Manmohan Singh held "broad-ranging" discussions with Myanmar President Thein Sein on a roadmap for bilateral cooperation and said New Delhi was committed to Myanmar's economic development.

A Memorandum of Understanding for India's 500 million dollar credit line was signed between the Export-Import Bank of India and Myanmar Foreign Trade Bank. The line of credit was agreed upon in October last year when the Myanmar President had visited New Delhi.

The two countries also signed an air services agreement and an MoU on the establishment of a joint trade and investment forum and setting up of border trade centres across the border of India and Myanmar.

The prime minister told Thein Sein that connectivity remains a major thrust area in India-Myanmar relations while capacity-building in Myanmar was a major priority for India's development assistance to this country. India pledged to double the training slots of Myanmarese personnel in India.

"We have embarked on a new journey of bilateral cooperation," Dr Singh told Thein Sein, adding, "We are committed to strengthening our economic and development partnership."

Singh told President Sein that India was ready to share with Myanmar its experience of Parliamentary democracy and "we wish you all success in your nation-building efforts and changes you are bringing about," according to MEA spokesman Syed Akbaruddin.

Singh, who is accompanied by his wife Gursharan Kaur and External Affairs Minister S M Krishna, was given a ceremonial reception at the Presidential Palace.

Ahead of the talks, Krishna suggested that India and Myanmar should work out a joint strategy to tackle terrorism and insurgency as both the countries were facing the problem.

"Also, there are insurgents on either side. So, I think we have to work out an understanding to tackle it. We have an understanding with Myanmar, we have been cooperating with Myanmar and it is necessary to deepen this cooperation," he said.

"Myanmar is a developing country like India. They have come out of some problems internally and now they seem to be settling down and it is about time for them to devote time and to launch a developmental agenda. I think the people of Myanmar need India's assistance and India would be willing to assist them," said Krishna.