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Abstract The extremely oblique Indo‐Burma subduction zone exhibits dextral strike‐slip faulting along the Sagaing, Kabaw, and Churachandpur‐Mao Faults as well as east‐west shortening between the Sagaing Fault and Bengal Basin. Through regional stress analysis, considering areas from central Tibet, around the eastern Himalaya Syntaxis, to Burma, it has been determined that the principal compressive stress directions align with the principal strain rates. The northeast‐southwest oriented compressive stress direction from the western Shan Plateau continues into Burma. Notably, P axes align with the topographic gradients, and T axes are sub‐parallel to the topographic contours in the Shan Plateau region south of 27°N. These stress patterns are consistent with a gravitational potential energy induced crustal and mantle flow. The alignment of the fast shear wave with the maximum strain rate and the colinear NW‐SE to E‐W fast direction of the SKS wave and T axis determined from focal mechanisms in the Shan Plateau suggest that the mantle lithosphere deforms in concert with the crust. We suggest crust and mantle flow south of the Red River Fault has resulted in widening of the lithosphere in the Shan Plateau in an east‐west direction. Therefore, the Sagaing Fault has bowed approximately 50–100 km westward if we assume that the Sagaing Fault was originally straight. Our results of regional stress inversion are consistent with late Miocene to present E‐W shortening in the Indo‐Burma subduction zone resulting from the release of gravitational potential energy from the central Tibetan Plateau.