Thailand to boost trade with India

The Commerce Ministry is joining forces with the government’s Team Thailand to boost economic growth by tapping into the vast potential of India. The aim is to boost exports to India by an impressive 4% this year.

Deputy Commerce Minister Napintorn Srisunpang highlighted the allure of the Indian market, citing its robust economic growth, resilient domestic consumption, and active industrial activity. He pointed to substantial investments from both public and private sectors, particularly benefitting real estate, construction, and automotive industries.

However, not one to gloss over challenges, Napintorn acknowledged certain obstacles. The looming threat of high inflation, driven by escalating food costs and a decline in household spending, poses a considerable hurdle.

Furthermore, he underscored the risks associated with non-tax measures, including tardy announcements of product standard requirements and import licenses, along with delayed certifications. These hurdles adversely impact key exports such as air-conditioners, plastic pellets, synthetic fibres, and copper-based products.

Crucially, the global demand slump, exacerbated by higher inflation among major trading partners, remains a significant concern. This slump has led to reduced exports from India, particularly in sectors like jewellery and ornaments, while global uncertainties stemming from heightened conflicts in the Persian Gulf add another layer of complexity.

In 2022, bilateral trade between Thailand and India reached a commendable US$17.7 billion (approximately 617 billion baht), with exports at US$10.5 billion and imports at US$7.17 billion. Although trade in the first 11 months of last year amounted to US$14.8 billion, with exports valued at US$9.34 billion and imports at US$5.55 billion, the goal is to propel these figures higher this year, reported Bangkok Post.

As part of their strategic efforts, the Commerce Ministry is gearing up to lead a delegation to the 10th Vibrant Gujarat Global Summit on January 10 to 11, alongside representatives from 29 other countries. The delegation aims to set up a vibrant pavilion, showcasing Thailand’s industries and their potential investments in Gujarat. Seminars will be organised to entice Indian investors to participate in the Eastern Economic Corridor.

Highlighting Gujarat’s economic prowess, Napintorn described it as the Gujarat Model — a state known for its emphasis on infrastructure development, special economic zones, and a streamlined one-stop investment service.