India, Thailand bilateral trade ties set to strengthen during PM Modi’s visit
New Delhi: Prime Minister Narendra Modi’s two-day visit to Thailand, beginning Thursday, is set to enhance trade relations between the two countries.
The fast-growing Indian market remains attractive for Thai investors, and investments from the South Asian nation have also increased in recent years.
The recent years saw increased investment from Thailand in India in infrastructure, real estate, agro processing, electronics, automotive, food processing sectors, the hotel hospitality sector and the renewable energy sector.
Notably, in 2021, Global Renewable Synergy Co., Ltd made the largest investment of $453.29 million in India in the renewable energy sector.
The growth of bilateral trade has been aided by an Early Harvest Scheme (EHS), which covers 83 products, under the proposed India-Thailand Comprehensive Economic Cooperation Agreement (CECA) that was put in place in September 2004.
Moreover, the ASEAN-India Trade in Goods Agreement (AITIGA) also contributed to enhanced bilateral trade. ASEAN and India are currently working on the review of AITIGA to make it more user-friendly, simple and trade facilitative for businesses.
According to Thailand’s Ministry of Commerce, bilateral trade between India and Thailand stood at $ 16.04 billion in 2023, with exports from India to Thailand at $5.92 billion and imports from Thailand to India at $10.11 billion.
In the ASEAN region, Thailand is the 4th largest trading partner of India after Singapore, Indonesia and Malaysia.
The Indian exports to Thailand include silver bars and gold; machinery and parts; metal waste scrap and products; chemicals; vegetables and vegetable products; medicinal and pharmaceutical products; fresh aquatic animals, chilled, frozen, processed and instant, parts and accessories of vehicles; Iron, steel and products; electrical machinery and parts; coffee, tea and spices; electrical household appliances; Fabrics, etc.
The major Indian imports from Thailand are animal or vegetable fats and oils; chemical products; polymers of ethylene, propylene, etc., in primary forms; precious stones and jewellery; iron and steel and their products, among others.