The Indian position towards Burma is characterised by a paradox. Across the political spectrum, civil society and media, there is support for the Burmese democratic movement. People sympathise with Daw Aung San Suu Kyi, who lived and studied there when her mother was the first Burmese ambassador to New Delhi in the 1960s. But in the past decade or so, the position of the Indian government has not reflected this support. Successive governments after 1994 have engaged with the generals, who continue to ruthlessly suppress Burmese democratic aspirations.
India and Burma have had close ties through history, from traditional cultural connections to intimate political relations in the modern era, going back to the struggle for independence from British colonial rule. India was the first nation to extend active support to Burma's pro-democracy movement. New Delhi also condemned the regime in Rangoon for refusing to hand over power to Daw Aung San Suu Kyi and her National League for Democracy (NLD) following the party's victory in the 1990 general elections. In 1995, the Indian government honoured Suu Kyi with the prestigious Jawaharlal Nehru Award for International Understanding. Burmese refugees and activists have been allowed to stay in India, though the Indian government does not extend them any material or financial support.
Things changed dramatically in the second half of the 1990s, as the Indian government began to avoid making critical and controversial remarks on developments in Burma. Although individual parlia-mentarians and political parties continue to reiterate their commitment to the pro-democracy movement, state policy has taken an altogether different direction.
Since 1998, India has extended more than USD 100 million in credit to the Burmese regime, including for upgrading the Rangoon-Mandalay railway line. In addition, it has contributed USD 27 million to the building of the 160-kilometre Tamu-Kalewa highway in Burma's Sagaing Division. India has also emerged as Burma's second largest market after Thailand, absorbing 25 percent of the country's total exports, and hopes to double bilateral trade to a billion US dollars per annum in the next few years. India is also providing training to Burmese armed forces personnel and helping build border infrastructure. As a part of its energy strategy, it also plans to buy natural gas from Burma's reserves. This would benefit the military regime millions of dollars annually.