India Thailand Trade
India Thailand Trade Agreement
Last updated: Sep, 2023
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 26th position in FDI equity inflows into India with a cumulative FDI amount of US$ 1,172 million from April 2022 to September 2022.
- According to the Tourism Authority of Thailand, on 27 May 2022, Indians became the largest group of tourists to Thailand, with more than 100,000 arrivals up to 27 May 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$ 11,698 million.
Major exported items from India to Thailand with amount & quantity
- India exported 4,575 commodities to Thailand in FY 2021-22.
- India’s export to Thailand stood at US$ 5.7 billion in FY 2021-22.
- Major exported items from India to Thailand include pearls, precious or semi-precious stones/metals and articles thereof; imitation jewellery and coin (US$ 1,163.97 million); followed by nuclear reactors, boilers, machinery and mechanical appliances; parts thereof (US$ 1,096.50 million) in FY 2021-22.
- India’s export to Thailand stood at US$ 3.9 billion from April-November 2022.
- Major exported items from India to Thailand include pearl, precious or semi-precious stones/metals and articles thereof (US$ 794 million) followed by IC engines and parts (US$ 449 million) etc. during April-November 2022.
Major imported items by India from Thailand with amount & quantity
- India imported 3,188 commodities from Thailand in FY 2021-22.
- India’s imports from Thailand stood at US$ 9.3 billion in FY 2021-22.
- Major items imported by India from Thailand include nuclear reactors, boilers, machinery and mechanical appliances; parts thereof (US$ 1,473.87 million); followed by plastics and articles thereof (US$ 1,369.04 million) in FY 2021-22.
- India’s imports from Thailand stood at US$ 7.7 billion from April-November 2022.
- Major items imported from India to Thailand include vegetable oils (US$ 1,051 million) followed by plastic raw materials (US$ 859 million) etc. from April-November 2022.
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.
- 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$ 11,698 million. 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
- 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 21 April 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 21 April 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 29-31 July 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 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.
- The 9th round of JCM was held in Bangkok, Thailand on 16-17 August 2022. External Affairs Minister of India (EAM) and Deputy Prime Minister of Thailand (DPM/FM) Mr. Don Pramudwinai co-chaired the JCM on 17 August. 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.
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-
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
Email: thaiembassy.del@mfa.go.th
Email: consular.del@gmail.com
Telephone: +911124197200
Officials
H.E. Ms. Pattarat Hongtong - Ambassador
Mr. Surapat Phonsaen - Deputy Chief of Mission: Minister Counsello
Partners
