6th BIMSTEC Summit to Enhance Economic Collaboration Between India and Thailand
Click to start listening
Synopsis
As PM Modi prepares for the 6th BIMSTEC Summit in Thailand, this event is set to significantly enhance the economic and trade ties between India and Thailand, exploring vast opportunities for investment and cooperation in multiple sectors.
Key Takeaways
- Strengthening India-Thailand economic ties.
- Thailand is India's 4th largest trading partner in ASEAN.
- Bilateral trade reached $16.04 billion in 2023.
- Opportunities in sectors like infrastructure and renewable energy.
- Investment from Thailand in India is on the rise.
New Delhi, April 1 (NationPress) As Prime Minister Narendra Modi gets ready for his journey to participate in the 6th BIMSTEC Summit in Thailand on April 3-4, this significant gathering aims to further enhance the economic and trade relationships between India and Thailand.
Within the ASEAN area, Thailand ranks as India’s fourth largest trading partner, following Singapore, Indonesia, and Malaysia. The bilateral trade between India and Thailand reached $16.04 billion in 2023, comprising India's exports to Thailand of $5.92 billion and imports amounting to $10.11 billion.
The rapidly expanding Indian market continues to attract Thai investors, presenting extensive opportunities across sectors such as infrastructure, agro and food processing, automotive and auto parts, pharmaceuticals and health, tourism, retail, and renewable energy.
In September 2004, an Early Harvest Scheme (EHS), encompassing 83 products, was established under the proposed India-Thailand Comprehensive Economic Cooperation Agreement (CECA), which has aided in the growth of bilateral trade.
The ASEAN-India Trade in Goods Agreement (AITIGA), effective from January 1, 2010, has also played a role in boosting bilateral trade. Currently, both ASEAN and India are working on a review of AITIGA to enhance its user-friendliness and facilitate trade for businesses.
Key exports from India to Thailand include jewellery (including silver and gold), machinery and parts, metal waste scrap, chemicals, vegetables, medicinal products, aquatic animals, vehicle parts and accessories, iron and steel, electrical machinery, household appliances, and fabrics.
Conversely, significant imports from Thailand to India encompass animal and vegetable fats, chemical products, polymers, precious stones, machinery, automobiles, copper, aluminium, air conditioning machines, and rubber products.
Thai investments in India have seen a marked increase in recent years, primarily in sectors like infrastructure, real estate, agro processing, electronics, automotive, food processing, hospitality, and renewable energy.
In 2021, Global Renewable Synergy Co Ltd made a historic investment of $453.29 million in India within the renewable energy sector.
The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) consists of seven member states located in and around the Bay of Bengal.
This unique alliance connects South Asia with South-East Asia, comprising five members from South Asia (Bangladesh, Bhutan, India, Nepal, and Sri Lanka) and two from South-East Asia (Myanmar and Thailand).
The BIMSTEC region houses 1.7 billion individuals—constituting 22 percent of the global population—with a combined GDP of $5 trillion.
PM Modi’s two-day visit to Thailand starting Thursday provides an opportunity to deepen India's economic and commercial relations with this Southeast Asian nation.
