India Pushes to Deepen Trade Ties With Thailand
Indian and Thai business leaders met in Bangkok to explore deeper trade and investment ties, with bilateral trade currently at $20-21 billion but officials saying the relationship hasn't reached its full potential under India's "Act East" p
Business leaders and entrepreneurs from India and Thailand gathered in Bangkok on 27 August for the India-Thailand Business Conclave, aimed at exploring opportunities to deepen trade and investment ties between the two countries.
The event, organised by the Embassy of India in Thailand, brought together representatives from both sides as India seeks to expand its economic engagement with Thailand under New Delhi's "Act East" policy.
During the conclave titled "From Shared Experiences to New Opportunities" at a Bangkok hotel, Indian officials noted that bilateral trade has grown significantly over the last decade and now stands between 20 and 21 billion US dollars, with a trade surplus of about 10 to 11 billion dollars in Thailand's favour. However, officials stressed that the relationship has still not reached its full potential.
Though Thailand is the second-largest economy in ASEAN, it ranks only as India's fourth-largest trading partner in the region, behind Singapore, Indonesia, and Malaysia. Obstacles remain, including non-tariff barriers and gaps in understanding of each other's regulatory frameworks. Stronger business-to-business ties are seen as vital to strengthening the broader economic and strategic partnership.
The elevation of India-Thailand relations to a Strategic Partnership reflects shared aspirations for deeper engagement. Priority areas for cooperation include facilitating trade, resolving market access issues, and building confidence in the private sector. Future-oriented industries such as renewable energy, electric vehicles, digital technology, robotics, information and communications technology, space technology, biotechnology, the creative industries, and start-ups offer significant opportunities.
Indian companies are attracted to Thailand as a gateway to ASEAN markets, bringing scale, technological expertise, and talent. Thai businesses view India's vast domestic market as an attractive expansion destination. Thailand's established position as a hub for food processing, automotive, electronics, and petrochemical production is increasingly attracting Indian firms seeking access to broader ASEAN markets.
Physical infrastructure projects, including the India-Myanmar-Thailand Trilateral Highway, are expected to boost trade flows and reduce logistics costs. Ongoing discussions on port-to-port connectivity and coastal shipping aim to bring the regions closer together, creating opportunities for manufacturers—particularly small and medium enterprises—to scale up production and expand their international presence.
