Dr. Arundhati Sharma, Himani Sharma
Abstract
The
Kaladan Project, one of India’s costliest investments on foreign soil was
conceived as a part of India’s Look East Policy rechristened as Act East Policy
in 2014. It aimed to promote seamless integration between India’s North Eastern
Region and the Chin and Rakhine states of Myanmar which have for the most part
of their post-independence history experienced developmental deficits. The
Kaladan Project was greenlighted in 2008 at an initial estimated cost of Rs.
535.91 crore. This amount subsequently saw an upward revision to Rs. 2904.04
crore by 2015. This paper seeks to make an economic assessment of India’s
Kaladan Project within Myanmar. To achieve this a descriptive-analytical
framework has been used based on the analysis of primary and secondary sources.
Primary sources covered in the study include Indian government reports,
primarily the Standing Committee reports, the Outcome Budgets of the Ministry
of External Affairs and interviews with anonymous government officials.
Secondary data has been collected through books, websites and articles. The
study finds that the grants-in-aid nature of the Kaladan Project makes it
extremely lucrative for Myanmar given that the country is in need of heavy
infrastructure investment to stimulate its economic growth. It also places New
Delhi as an effective alternative to Beijing’s dubious financial practices
under the China Myanmar Economic Corridor. However, for India to emerge as a
credible connectivity partner for its immediate and extended neighbourhoods, it
needs to deliver large-scale projects within estimated timelines without undue
cost escalations. This will be critical for the success of India’s connectivity
pillar under the Act East Policy.
📄 [PDF]
Published: June 2025 [Vol. 08, No. 06]