By Khant Ko Ko Aung
Sagaing Region occupies a strategically important position in Myanmar’s economic geography. Sharing an international border with India and connecting western Myanmar with the country’s central regions, Sagaing has long been important for agriculture, trade and transport. Today, however, its greatest opportunity may lie in transforming this geographical advantage into a new investment gateway linking India, Myanmar and South-East Asia.
Myanmar-India economic relations have continued to gain importance. During President U Min Aung Hlaing’s visit to India in May-June 2026, Myanmar’s Ministry of Foreign Affairs stated that India was Myanmar’s fourth-largest export destination and sixth-largest source of imports, with bilateral trade averaging around US$1.5 billion annually. India had 39 investment projects in Myanmar and ranked as Myanmar’s 11th-largest investor. The President also highlighted the Kaladan Multi-Modal Transit Transport Project and the India-Myanmar-Thailand Trilateral Highway as important initiatives for strengthening bilateral trade and opening the ASEAN-India economic corridor.
These figures demonstrate both progress and opportunity. The challenge now is not simply to attract more Indian investment into Myanmar, but to ensure that strategically located regions such as Sagaing can benefit from the investment, trade and logistics opportunities created by regional connectivity.
Sagaing is well positioned for this purpose. According to the Directorate of Investment and Company Administration, the region covers approximately 93,704.5 square kilometres and has important investment potential in agriculture, agro-processing, infrastructure, livestock, tourism, mining and manufacturing. Its border with India gives it a particular advantage as Myanmar seeks to strengthen economic links with its western neighbour.
The strategic importance of Sagaing becomes clearer when viewed together with India’s Act East Policy. India regards its Northeastern Region as a gateway to South-East Asia, making Myanmar a critical geographical bridge. One of the flagship projects under this strategy is the India-Myanmar-Thailand Trilateral Highway, which is designed to connect Moreh in India through Tamu in Myanmar to Mae Sot in Thailand.
Recent progress on this connectivity is particularly important for Sagaing. India’s Ministry of Development of North Eastern Region reported in August 2026 that the Tamu-Kalewa road section had been completed and handed over to Myanmar, while the Kalewa-Yargi highway section from kilometre 112 to kilometre 60 was completed and handed over in October 2025.
For Sagaing, these developments should encourage a shift in thinking—from a border-trade corridor to an investment corridor.
A road connecting countries creates economic value only when businesses, logistics facilities, warehouses, factories and supporting services develop around it. In this respect, Tamu, Kalay, Kalewa and Monywa can be viewed as interconnected economic nodes. Tamu can strengthen its role as a border-trade gateway; Kalay can develop as a commercial and service centre; Kalewa can support transport and logistics; while Monywa can become an important processing, manufacturing and distribution centre for the wider region.
Agriculture and agro-processing could be among the most promising areas for Indian investment. Sagaing has a strong agricultural base, while India provides a large nearby market. Instead of exporting mainly raw agricultural commodities, the region can attract investment in rice and pulse processing, oilseed processing, fruit processing, packaging, cold storage, agricultural machinery and other value-added industries.
This approach would create a stronger local value chain. Farmers would gain access to larger markets, local businesses could become suppliers, and foreign investors could establish processing and export-oriented enterprises. Such investment would also have greater potential to generate employment and transfer technology.
There are opportunities beyond agriculture as well. At the Myanmar-India Trade and Investment Conclave, Indian businesses expressed interest in sectors including pharmaceuticals, information technology and agriculture. This provides an opportunity for Sagaing to attract not only large projects but also medium-sized enterprises, technology partnerships and joint ventures.
Monywa could have a particularly important role in this strategy. Its location within Sagaing and its existing commercial and industrial activities provide a foundation for developing an inland investment and distribution centre. With improved logistics and supporting infrastructure, Monywa could connect production areas in Sagaing with markets in central Myanmar and, through the western corridor, with India.
The region’s trade-support infrastructure can also contribute to this development. MyanTrade operates the Zayyar Trade Centre in Monywa, which provides services including export-product promotion, trade information, business matching, consultation, seminars and training. Such institutions could become more actively involved in connecting Sagaing producers and businesses with Indian investors and buyers.
Sagaing’s opportunity should also be considered within the wider India-Myanmar-Thailand connectivity network. Although the Kaladan Multi-Modal Transit Transport Project follows a different route, it demonstrates India’s broader effort to strengthen connectivity between its Northeast and Myanmar. The Kaladan project combines maritime, inland waterway, and road transportation, connecting India’s Northeast with Myanmar and providing another important link between South and South-East Asia.
Together, these initiatives create a broader regional picture. India can gain stronger access to Southeast Asian markets, Thailand can benefit from improved connections with South Asia, and Myanmar can position itself as a bridge between the two regions. Sagaing, because of its location on the India-Myanmar overland route, has the opportunity to become one of the important beneficiaries of this emerging network.
Nevertheless, connectivity alone will not automatically produce foreign direct investment. Investors also consider electricity, telecommunications, logistics costs, industrial land, skilled labour, customs procedures, taxation, regulatory predictability and the overall ease of doing business. Therefore, the development of Sagaing as an investment gateway must go beyond road construction.
A targeted investment strategy is needed. The Tamu-Kalay-Kalewa-Monywa corridor could be promoted as an India-Myanmar trade and investment corridor, with clearly identified opportunities for logistics, agro-processing, light manufacturing, warehousing and commercial services. Investment promotion should focus on projects that create employment, support local suppliers, increase exports and transfer technology.
Human-resource development will also be essential. A modern investment corridor requires skilled workers capable of operating factories, logistics systems, digital platforms and agricultural-processing facilities. Technical and vocational training, digital skills and language development should therefore be integrated into the region’s investment strategy.
Most importantly, foreign investment should be connected with local economic development. Indian companies operating in Sagaing should have opportunities to work with Myanmar enterprises, purchase from local suppliers and employ and train local workers. This will help ensure that FDI creates benefits beyond the individual investment project.
Sagaing therefore has an opportunity that extends far beyond traditional border trade. Tamu can serve as the gateway, Kalay and Kalewa can strengthen the corridor, and Monywa can help transform connectivity into production, processing and investment. If these locations are effectively connected with infrastructure, business services and investment policies, Sagaing can become much more than a transit region.
Myanmar’s growing economic engagement with India, together with the India-Myanmar-Thailand connectivity network, provides a strong foundation for this transformation. The opportunity is not simply to move goods from one country to another. It is to create an economic corridor where investment arrives, industries develop, local businesses participate, and employment opportunities expand.
The strategic objective should therefore be clear: turn roads into corridors, corridors into markets, and markets into investment.
Sagaing should not merely be a place through which goods pass. It should become a place where investment arrives, businesses grow, and regional opportunities are created. With the right policies and infrastructure, Sagaing can become Myanmar’s gateway to India and an important bridge connecting India with Myanmar and South-East Asia.
References
Directorate of Investment and Company Administration. (nd). Sagaing Region investment opportunities. Ministry of Investment and Foreign Economic Relations, Republic of the Union of Myanmar.
Government of India, Ministry of Development of North Eastern Region. (2026, August 6). Initiatives for transforming NER Press Information Bureau.
Ministry of External Affairs, Government of India. (28 July 2023). Question No 1411: Kaladan Multi Modal Transit Transport Project. Government of India.
Ministry of Foreign Affairs, Republic of the Union of Myanmar. (3 June 2026). President of the Republic of the Union of Myanmar U Min Aung Hlaing delivers a speech at the Myanmar-India Trade and Investment Conclave.
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