Vineeta Rao
Auckland, April 3, 2025
The massive earthquake that rocked Myanmar on Friday, March 28, has created a stir across neighbouring countries too and not just the seismic kind. Indian exporters, particularly those in the state of Gujarat, fear that the recent devastating geological event will have significant repercussions on trade, especially on shipments and payments.
What happened in Myanmar?
The strongest tremor registered a magnitude of 7.5 on the Richter scale. These tremors caused extensive damage to infrastructure, including roads, bridges, and buildings.
The region is considered geologically active as it sits atop the convergence of four tectonic plates: the Eurasian Plate, the Indian Plate, the Sunda Plate, and the Burma microplate.
A major fault called the Sagaing fault line cuts right through the country from North to South, measuring 1200 km in length. It was along this line that a ‘strike-slip’ took place, where the friction between the plates resulted in an earthquake.
The event is said to be the most powerful earthquake to hit Myanmar since 1912 and the second deadliest in terms of impact. Aside from Myanmar, the tremors were also felt in neighbouring Thailand and China, causing significant property damage. Tremors of slightly less intensity were also felt in Bangladesh and India, particularly in Delhi.
Northeastern states in India, particularly Meghalaya, experienced noticeable aftershocks with a 4.0-magnitude tremor reported in the East Garo Hills. Tremors were also felt in cities like Kolkata and Imphal. In Basirhat, residents reported tremors in natural water bodies.
In Myanmar, which is the epicentre of the quake, the death toll has exceeded 2700, according to media sources.
Impact on Indian Trade
India shares robust trade relations with Myanmar, particularly in sectors such as textiles, pharmaceuticals, and chemicals. The earthquakes have disrupted these trade flows, leading to potential losses worth millions of dollars. Concerns have also been raised about the stability of trade routes and the safety of goods in transit, creating logistical challenges.
The state of Gujarat, in particular, has strong economic ties with Myanmar and is heavily impacted. Gujarat’s textile industry, which exports garments and grey fabric worth approximately $123.36 annually to Myanmar, faces significant disruptions. The damage to Myanmar’s ports and transportation networks has delayed shipments, affecting the supply chain and causing financial strain on exporters.
The pharmaceutical sector, where exports are worth about $431.7 million, relies on timely deliveries for maintaining the efficacy of medicines and is also hit hard. Delays in shipments due to damaged infrastructure and communication breakdowns have raised concerns about the quality and safety of pharmaceutical products reaching Myanmar.
Chemical exports, primarily dyes and industrial chemicals, contribute $20.56 million and are experiencing similar challenges, with delays in shipments and increased costs due to the need for alternative routes and transportation methods. Timber and wood exports, primarily for the manufacturing of furniture, may also be similarly affected.
Many telephone lines in Mandalay are down, making communication difficult. Businesses in India have urged the Indian government to introduce relief measures to mitigate losses and stabilise trade with Myanmar and Thailand.
Indian Government Response
Stepping up to its role as the global player in the South, India expressed solidarity with the people of Myanmar and offered assistance.
Prime Minister Narendra Modi announced Operation Brahma to provide humanitarian assistance. Indian Newslink will cover these efforts in a separate story.
Indian authorities are also working closely with their counterparts in Myanmar to facilitate the smooth flow of aid and ensure that trade disruptions are minimised.
Given Myanmar’s geological situation, both governments would do well to focus on strengthening infrastructure and improving disaster preparedness to ensure the resilience of trade relations between India and Myanmar in the future.
Vineeta Rao is an Indian Newslink Reporter based in Auckland.
