Why BIMSTEC matters now more than ever

Donald Trump’s tariff bombshell, announced on April 2, 2025, has upended global trade with a 10 percent baseline levy on all imports, spiking to punitive rates like 54 percent for China and 26 percent for India by April 9. As the US slams shut its doors, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) emerges as a lifeline—not just for India, but for all seven members: Bangladesh, Bhutan, Nepal, Sri Lanka, Myanmar, and Thailand. This isn’t mere regional cheerleading; it’s a pragmatic pivot to weather a storm India and its neighbors can’t ignore.

For India, BIMSTEC is a strategic ace. With SAARC paralyzed by Pakistan’s shadow, this grouping of 1.7 billion people—22 percent of the world’s population—offers a $5 trillion economic bloc to flex New Delhi’s “Act East” muscle. Trump’s tariffs hit India’s $50 billion trade surplus with the US, but BIMSTEC’s proximity and untapped potential could offset losses. India’s push at the April 4 Bangkok Summit for a Free Trade Agreement (FTA), stalled since 2004, isn’t just ambition—it’s survival. A GTRI report pegs intra-regional trade at a measly $45 billion; an FTA could triple that, making India a hub for textiles, tech, and pharma as China’s rivals reel under heavier duties.

The other members gain too. Bangladesh, facing a 37 percent US tariff, can lean on BIMSTEC to pivot exports like garments to India and Thailand, both coastal powerhouses. Landlocked Nepal and Bhutan, spared direct tariff hikes, still need India’s ports and markets to dodge global fallout. Myanmar and Thailand, hit with 36 percent rates, can deepen maritime ties—via the new BIMSTEC maritime pact—to sidestep US reliance. Sri Lanka, juggling debt, finds a lifeline in regional supply chains. Together, these nations share a Bay of Bengal edge: shorter supply chains, less dollar dependence, and a chance to defy Trump’s chaos.

Post-tariff, BIMSTEC’s relevance skyrockets. The Bangkok Vision 2030, adopted this month, isn’t fluff—it’s a roadmap for local currency trade and digital integration, like India’s UPI linking with Thai systems. As Trump’s policy chokes the West, this bloc can counter China’s Belt and Road grip without Beijing’s strings. India must lead, but all members must commit. The alternative? Economic isolation in a world where giants like the US and China dictate terms. BIMSTEC isn’t just a club—it’s a shield.