New Delhi, April 1 (IANS) As Prime Minister Narendra Modi prepares to embark on a visit to attend the 6th BIMSTEC Summit in Thailand from April 3-4, the key event is set to further strengthen India-Thailand economic and trade ties.
In the ASEAN region, Thailand is the fourth largest trading partner of India after Singapore, Indonesia, and Malaysia. 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 at $10.11 billion.
The fast-growing Indian market remains attractive for Thai investors, with vast opportunities available in infrastructure, agro and food processing, automotive and auto parts, pharmaceuticals and health, tourism, retail and renewable energy sectors.
An Early Harvest Scheme (EHS), covering 83 products, under the proposed India-Thailand Comprehensive Economic Cooperation Agreement (CECA) was put in place in September 2004, and has contributed to the growth of bilateral trade.
The ASEAN-India Trade in Goods Agreement (AITIGA), which came into effect from January 1, 2010, also contributed to enhanced bilateral trade. ASEAN and India sides are currently working on review of AITIGA to make it more user-friendly, simple and trade facilitative for businesses.
Major Indian exports to Thailand include jewellery including 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 & accessories of vehicles; Iron, steel and products; electrical machinery and parts; coffee, tea and spices; electrical household appliances; and fabrics, etc.
Major Indian imports from Thailand include 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; machinery and parts thereof; motor cars, parts & accessories; copper and articles thereof; aluminium products; spark-ignition reciprocating internal combustion piston; automatic data processing machines and parts thereof; air conditioning machine and parts thereof; rubber products; rubber etc.
Investment from Thailand in India has increased in the recent years. Thai investments are mainly in infrastructure, real estate, agro processing, electronics, automotive, food processing sectors, the hotel hospitality sector, and the renewable energy sector.
In 2021, Global Renewable Synergy Co Ltd made largest an investment of $453.29 million in India in renewable energy sector.
The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is a grouping of seven member states lying in the littoral and adjacent areas of the Bay of Bengal.
It is a unique link connecting South Asia with South-East Asia – five members from South Asia (Bangladesh, Bhutan, India, Nepal, and Sri Lanka) and two from South-East Asia (Myanmar and Thailand).
The BIMSTEC region brings together 1.7 billion people – 22 per cent of world population with a combined GDP of $5 trillion.
PM Modi’s two-day visit to Thailand from Thursday onward offers a chance to enhance India’s economic and commercial relations with the Southeast Asian country.
–IANS
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