India faces the problem of anti-drug terrorism on the porous border with Myanmar, where drugs are smuggled into India and exchanged for weapons and ammunition. According to a report, last year, the Indian army seized more than 30 rupees of crore on the international market from the border with Myanmar. Myanmar remains the main source of the drug problem in Manipur, Mizoram and Nagaland. Since 1993, numerous agreements have been signed between India and Myanmar to jointly combat the drug threat along their shared border. Border barriers are important for controlling drug terrorism along the India-Myanmar border. Recently, India sanctioned the raising of the iron barrier along the 404 km border between Mizoram and Myanmar. It also ordered the closure of the 14-kilometre porous international border near Moreh in Manipur. Under the India-Myanmar Free Trade Agreement, only 22 items can currently be exported and imported. These include grinding seeds, legumes and beans, fresh vegetables, fruit and soybeans.
On the other hand, India delivers clothing, shoes, medicines, wool and technical goods to Myanmar. These items are in high demand in Myanmar. India and Myanmar have signed a bilateral Investment Promotion and Protection Agreement (BIPPA) and an Agreement on the Prevention of Double Taxation (DBAA). These agreements aim to provide an easy flow of bilateral investment and corporate profits, as well as tax issues. Both agreements have been ratified by India and Myanmar. In order to stimulate bilateral trade, the Indo-Myanmar Chamber of Commerce and Industry is organising the SME India 2007 small and medium-sized trade fair in Yangon on 25 November. There is a demand for transportation subsidies and more facilities for importers and exporters, especially those dealing with Myanmar. A special economic zone should be created to facilitate bilateral trade. India`s current Ambassador to Myanmar, Saurabh Kumar, said: “In the coming years, India`s ambitious Act East foreign policy will improve the quality of India-Myanmar relations. This would be achieved not only through the efforts of the state, but also through a lasting awareness of citizens, the promotion of investment and partnerships with the private sector, businesses and individuals.