India's Border Trade with Its Neighbouring Countries with Special Reference to Myanmar

Border trade between India and its neighbouring countries is largely determined by ethnic ties, affinity, long porous borders and low transaction costs. The inefficiencies and high transaction costs associated with formal trade have helped to promote informal trade, which traders find easier and more convenient. The feature that distinguishes cross-border trade between India and Myanmar from trade with other neighbouring countries is the adoption of a barter system. There is also a missing link between the border trade and production structure (both agriculture and industry) of the northeastern region of India, particularly Manipur, so that the larger gains from trade accrue to traders operating beyond the northeastern region.