Strengthening India-Thailand Trade Relations During PM Modi's Visit
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Synopsis
Prime Minister Narendra Modi's visit to Thailand is poised to strengthen trade ties, with significant investments from both countries in various sectors, including renewable energy and infrastructure. The bilateral trade figures highlight a growing economic partnership, backed by agreements facilitating trade.
Key Takeaways
- PM Modi's visit enhances India-Thailand trade.
- Thailand's investments in India are increasing.
- Key sectors include renewable energy and infrastructure.
- Bilateral trade reached $16.04 billion in 2023.
- ASEAN-India agreements are aiding trade growth.
New Delhi, April 1 (NationPress) Prime Minister Narendra Modi's two-day visit to Thailand, commencing on Thursday, aims to fortify trade relations between the two nations.
The rapidly expanding Indian market continues to attract Thai investors, with a notable increase in investments from the South Asian nation in recent years.
Recent years have witnessed significant investments from Thailand in India across various sectors, including infrastructure, real estate, agro processing, electronics, automotive, food processing, hotel hospitality, and renewable energy.
In a remarkable instance, in 2021, Global Renewable Synergy Co., Ltd made the largest investment of $453.29 million in India's renewable energy sector.
The growth of bilateral trade has been supported by an Early Harvest Scheme (EHS), covering 83 products, which is part of the proposed India-Thailand Comprehensive Economic Cooperation Agreement (CECA) established in September 2004.
Additionally, the ASEAN-India Trade in Goods Agreement (AITIGA) has also played a role in enhancing bilateral trade. Currently, ASEAN and India are reviewing AITIGA to make it more user-friendly and trade-facilitative for businesses.
According to Thailand's Ministry of Commerce, bilateral trade between India and Thailand reached $16.04 billion in 2023, with India exporting $5.92 billion worth of goods to Thailand and importing $10.11 billion worth from Thailand.
Within the ASEAN region, Thailand ranks as India's 4th largest trading partner, following Singapore, Indonesia, and Malaysia.
Indian exports to Thailand include silver bars, gold, machinery and parts, metal waste scrap, chemicals, vegetables, medicinal products, fresh aquatic animals, vehicle parts, iron, steel, electrical machinery, coffee, tea, spices, and fabrics.
The primary imports from Thailand to India consist of animal or vegetable fats and oils, chemical products, polymers of ethylene and propylene in primary forms, precious stones and jewelry, and iron and steel products, among others.
