New Delhi: Prime Minister Narendra Modi’s two-day visit to Thailand, beginning Thursday, aims to enhance India-Thailand trade relations. This diplomatic effort underscores the importance of economic collaboration between the two nations. The fast-growing Indian market remains attractive for Thai investors, leading to increased investments from Thailand in recent years.
Rising Investments from Thailand
The recent years have seen significant investments from Thailand in India across various sectors. These include infrastructure, real estate, agro-processing, electronics, automotive, food processing, hospitality, and renewable energy. Notably, in 2021, Global Renewable Synergy Co., Ltd made the largest investment of $453.29 million in India’s renewable energy sector. This investment highlights Thailand’s commitment to sustainable development in India.
Mechanisms Enhancing Trade
The growth of bilateral trade between India and Thailand benefits from strategic agreements. The Early Harvest Scheme (EHS), which covers 83 products, falls under the proposed India-Thailand Comprehensive Economic Cooperation Agreement (CECA) established in September 2004. Additionally, the ASEAN-India Trade in Goods Agreement (AITIGA) has also significantly contributed to enhancing trade relations. Currently, ASEAN and India are reviewing AITIGA to simplify and facilitate trade for businesses.
Current Trade Figures
According to Thailand’s Ministry of Commerce, bilateral trade between India and Thailand reached 16.04 billionin 2023.Exports from India to ports from Thailand to India stood at $10.11 billion. Within the ASEAN region, Thailand ranks as India’s fourth-largest trading partner, following Singapore, Indonesia, and Malaysia.
Key Exports and Imports
Indian exports to Thailand include silver bars, gold, machinery and parts, metal waste scrap, chemicals, vegetables and vegetable products, medicinal and pharmaceutical products, and various other goods. Conversely, major imports from Thailand comprise animal or vegetable fats and oils, chemical products, polymers, precious stones, and jewelry. This diverse trade portfolio reflects the robust economic ties between the two countries.
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