India Thailand Trade
According to the Tourism Authority of Thailand, Indians became the largest group of tourists to Thailand, with more than 100,000 arrivals as of May, 2022.
Last updated: Mar, 2024
Introduction
India and Thailand, located in each other’s extended neighbourhood, share a maritime boundary in the Andaman Sea. India’s bilateral relations with Thailand are rooted in history, age-old social and cultural interactions and extensive people-to-people contact. In the past two decades, with regular political exchanges, growing trade and investment, India’s ties with Thailand have now evolved into a comprehensive partnership.
India-Thailand Trade
- In 2020, the trade figures stood at US$ 9.76 billion despite the pandemic situation. In 2021, it reached a record high of around US$ 15 billion.
- Thailand occupies the 27th position in FDI equity inflows into India with a cumulative FDI amount of US$ 1.39 billion from April 2022-September 2023.
- According to the Tourism Authority of Thailand, on May 27, 2022, Indians became the largest group of tourists to Thailand, with more than 100,000 arrivals up to May 27, 2022, with the potential of touching 600,000 by year-end.
- In 2022 (April-November 2022) the trade figures between India and Thailand stood at US$ 11.69 billion.
Major exported items from India to Thailand with amount & quantity
- India exported 4,744 commodities to Thailand in FY23.
- India’s exports to Thailand stood at US$ 5.71 billion in 2022-23.
- Major exported items from India to Thailand include pearls, precious or semi-precious stones (US$ 1.02 billion), IC engines and parts (US$ 0.60 billion), marine products (US$ 0.33 billion), aluminium, products of aluminium (US$ 0.21 billion), auto components/ parts (US$ 0.21 billion), drug formulations, biologicals (US$ 0.18 billion), spices (US$ 0.18 billion), etc. in 2022-23.
- India’s exports to Thailand stood at US$ 3.3 billion from April-November 2023-24.
- Major exported items from India to Thailand include nuclear reactors, boilers, machinery, and mechanical appliances (US$ 570 million) followed by pearls, precious or semiprecious stones (US$ 428 million), marine products (US$ 219 million), mineral fuels, mineral oils etc. (US$ 79 million), coffee, tea, mate, and spices (US$ 107 million), etc. from April-November 2023-24.
Major imported items by India from Thailand with amount & quantity
- India imported 3,316 commodities from Thailand in FY23.
- India’s imports from Thailand stood at US$ 11.19 billion in 2022-23.
- Major items imported by India from Thailand include vegetable oils (US$ 1.45 billion), plastic raw materials (US$ 1.25 billion), organic chemicals (US$ 0.85 billion), pearl, precious and semi-precious stones (US$ 0.68 billion), AC, refrigeration, and machinery (US$ 0.66 billion), electronic components (US$ 0.41 billion), etc. in 2022-23.
- India’s imports from Thailand stood at US$ 6.8 billion from April-November 2023-24.
- Major items imported from India to Thailand include vegetable oils (US$ 523 million) followed by plastic raw materials (US$ 915 million), organic chemicals (US$ 523 million), AC, nuclear reactors, boilers, machinery, and mechanical appliances (US$ 1.01 billion), electronics components (US$ 895 million), telecom instruments (US$ 70 million), etc. from April-November 2023-24.
Economic Relations and Investments
- Since 1947, India has enjoyed dynamic bilateral relations with Thailand. 2022 marks the 75th year of diplomatic ties between the two nations. Quite interestingly, India’s ‘Act East’ and Thailand’s ‘Look West’ policy have provided the outline for enhancing mutual diplomatic as well as economic collaboration in a positive direction. Major Indian companies in Thailand include – Tata Steel Thailand, Tata Consultancy Services, Aditya Birla Group, Tech Mahindra, Kirloskar Brothers Ltd., etc. Leading Thai companies in the fields of agro-processing, construction, automotive, engineering and banking have an active and growing business presence in India.
- Commerce, culture, and connectivity are often cited as the three main pillars of India-Thailand relations. Maritime trade between the two countries has existed since 1500 BCE, paving the way for people-to-people contact and cultural interaction between the two states bordering the Bay of Bengal.
- Thailand is the fourth largest trading destination for India in the ASEAN region. Bilateral trade between India and Thailand has reached an all-time high of around US$ 15 billion in 2021-22. The Indian market remains attractive to Thai investors. From April-November 2022 the bilateral trade between India and Thailand stood at US$ 11.69 billion. Commerce, Culture and Connectivity define the future focus areas of cooperation between India and Thailand.
- India provides huge opportunities for investment in infrastructure, including roads, ports, the power sector, food processing, renewable energy, digital technology, logistics and electric vehicles. India’s Act East policy complemented by Thailand’s Act West policy has provided the basis for building a multi-faceted partnership between the two countries. Northeast India is the gateway to Thailand and other South-East Asian countries.
Recent Trends & developments
- The strategic location of Thailand in the heart of South-East Asia, bordering the Andaman Sea makes it an important partner of India and is the gateway to the ASEAN, as the region has integrated into the ASEAN Economic Community (AEC). In the ASEAN region, Thailand ranks as India’s 5th largest trading partner after Singapore, Indonesia, Malaysia, and Vietnam.
- Prime Minister Shri Narendra Modi held a telephonic conversation with Prime Minister Gen. Prayut Chan-o-cha on 1 May 2020, a few months into the COVID-19 pandemic outbreak. The two leaders exchanged views on effectively dealing with the COVID-19 pandemic and agreed upon collaboration for Research and Development in the field of medical sciences and vaccine development. In August 2022, the two sides signed an MoU in this regard.
- Ambassadors of India, Australia, Japan & US in Thailand jointly presented 200,000 doses of Made in India Covovax vaccines to Thailand under the Quad Vaccine Partnership on April 21, 2022.
- The 6th round of Foreign Office Consultations between India and Thailand, co-Chaired by Secretary (East), Mr. Saurabh Kumar and Thai Permanent Secretary for Foreign Affairs, Mr. Thani Thongphakdi, were held on April 21, 2022, in New Delhi. Both sides discussed bilateral, regional & global issues including post-COVID-19 recovery.
- Dr. Rajkumar Ranjan Singh, Minister of State for External Affairs and Education visited Thailand from July 29-31, 2022, to attend the 2nd edition of the North-East India Festival. Both sides discussed wide-ranging issues of mutual interest, including cooperation in political, commercial, defence, security, cultural and education matters, as well as the commemorative activities being organized by both sides to celebrate the 75th anniversary of the establishment of diplomatic relations.
- Prime Minister Shri Narendra Modi held a telephonic conversation with Prime Minister Gen. Prayut Chan-o-cha on May 1, 2020, a few months into the COVID-19 pandemic outbreak. The two leaders exchanged views on effectively dealing with the COVID-19 pandemic and agreed upon collaboration for Research and Development in the field of medical sciences and vaccine development. In August 2022, the two sides signed an MoU in this regard.
- The 9th round of JCM was held in Bangkok, Thailand on August 16-17, 2022. External Affairs Minister of India (EAM) and Deputy Prime Minister of Thailand (DPM/FM) Mr. Don Pramudwinai co-chaired the JCM on August 17. The entire gamut of bilateral relations was reviewed during these meetings and two MoUs, namely, (i) MoU on Health and Medical Research Cooperation between the Indian Council of Medical Research (ICMR), India and the Department of Medical Sciences (DMS), Thailand; and (ii) MoU for Cooperation & Collaboration on Broadcasting between Prasar Bharti, India and Thai Public Broadcasting Service of Thailand were signed.
- The 13th India-Thailand Joint Trade Committee meeting, held in New Delhi on April 20, 2023, emphasized enhancing bilateral trade, addressing market access issues, and exploring collaboration in sectors such as marine products, smartphones, electric vehicles, and services like nursing and medical tourism. Progress on connecting UPI with Thailand's Prompt Pay Service and settling trade transactions in local currency was also reviewed.
- On June 22, 2023, in New Delhi, the Department of Defence Production, MoD, hosted a briefing for a Thailand delegation led by Air Marshal Mr. Piboon Vorravanpreecha. Indian Defence Industries showcased cutting-edge capabilities, fostering bilateral defence cooperation, and paving the way for joint research, technology transfer, and strategic partnerships.
Conclusion
Thailand views India as the gateway to South Asia and beyond. As a result of the reduced tariff rates and new initiatives adopted by both countries, trade between the two countries increased manifold in recent years.
Contacts
- Embassy of India, Thailand
Address: 46, Prasarnmitr, Sukhumvit, Soi 23, Bangkok - 10110
Telephone: 02-2580300-6
Officials
Mr. Nagesh Singh - Ambassador and PR to UNESCAP
Email: amb.bangkok@mea.gov.in
Mrs. Alpana Dubey - Deputy Chief of Mission and Deputy PR to UNESCAP
Email: dcm.bangkok@mea.gov.in - Embassy of Thailand, India
Address: 56-N Nyaya Marg Chanakyapuri New Delhi 110021
Telephone: +911124197200
Email: thaiembassy.del@mfa.go.th
Email: consular.del@gmail.com
Officials
H.E. Ms. Pattarat Hongtong - Ambassador
Mr. Surapat Phonsaen - Deputy Chief of Mission: Minister Counsellor
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