India promised Myanmar a $500 million credit line to improve infrastructure on Friday and praised steps towards democracy by its reclusive neighbour, which is tentatively opening up after half a century of harsh military rule. The money and warm words came as Myanmar campaigns to shed its pariah status. It freed about 200 political prisoners this week, the latest sign of reforms in the poor and tightly controlled Southeast Asian country of 50 million people.
The former British colony also known as Burma has large undeveloped gas reserves and straddles busy Bay of Bengal shipping lanes, making it strategically important for energy-hungry emerging power neighbours India and China. Myanmar President Thein Sein met Indian Prime Minister Manmohan Singh in New Delhi during a four-day state trip, spending two days visiting religious sites.
About 100,000 refugees and migrants from Myanmar live in India. A few dozen protested during Sein's visit to call for a faster pace of reform and the release of prisoners. "Kick-start genuine political dialogue," read one placard held by a supporter of Myanmar pro-democracy leader Aung San Suu Kyi, who was freed from seven years of house arrest last November. Hours after the prisoners' release, Myanmar's first civilian president in nearly 50 years flew to India's Bihar state to pay homage at the site where the Buddha is said to have reached enlightenment.