With which neighbouring country of India has the Kaladan Multi-Modal Transit Transport Project been undertaken to improve connectivity and trade?

Introduction / Context:
The Kaladan Multi-Modal Transit Transport Project is a major connectivity initiative aimed at improving links between India and one of its neighbours by combining sea, river and road routes. It is a popular topic in general knowledge and international relations questions, especially in the context of India Act East policy and efforts to improve connectivity with Southeast Asia.

Given Data / Assumptions:
- The project named is the Kaladan Multi-Modal Transit Transport Project.
- The question asks which neighbouring country of India is involved in this project.
- The options include China, Nepal, Bhutan, Myanmar and Sri Lanka.

Concept / Approach:
The Kaladan project aims to connect the eastern Indian state of Mizoram with a port in a neighbouring country using a combination of sea, river and road transport. The port involved is Sittwe, located in a neighbouring country to the east of India. Knowing basic geography and India connectivity projects immediately points to Myanmar as that country, since Sittwe is a port there and Kaladan is a river in that region.

Step-by-Step Solution:
Step 1: Recall that the Kaladan project is designed to provide an alternative route to India northeastern states, bypassing the narrow Siliguri corridor. Step 2: Remember that the project includes development of Sittwe port, inland water transport on the Kaladan River, and road connectivity to India. Step 3: Identify the country where Sittwe port and the Kaladan River are located. Both are in Myanmar. Step 4: Review the options: China, Nepal, Bhutan and Sri Lanka do not contain Sittwe port or the Kaladan River. Step 5: Conclude that the neighbouring country associated with the Kaladan Multi-Modal Transit Transport Project is Myanmar.

Verification / Alternative check:
Official communications from the Government of India and project descriptions in reports on Act East policy consistently mention that the Kaladan project links India with Myanmar. The name of the river and the location of Sittwe port are both identified within Myanmar territory. These repeated references verify that Myanmar is the correct answer.

Why Other Options Are Wrong:
China: India has other connectivity projects and border issues with China, but the Kaladan project is not one of them.
Nepal: This is a landlocked country to the north of India and does not have the Kaladan River or Sittwe port.
Bhutan: Another landlocked country with separate connectivity initiatives; it is not part of the Kaladan scheme.
Sri Lanka: It is an island nation to the south of India; no component of the Kaladan project is located there.

Common Pitfalls:
Some candidates confuse various regional connectivity projects, such as the India Myanmar Thailand trilateral highway, the Chabahar port project in Iran or other corridor initiatives. Another pitfall is to assume that any connectivity project in the east must involve China, which is not true. Linking the word Kaladan to Myanmar geography and the Sittwe port helps fix the correct association in memory.

Final Answer:
The Kaladan Multi-Modal Transit Transport Project has been undertaken between India and Myanmar.