Private forum for Thai-Indian trade urged
The Board of Investment is encouraging six Thai businesses to pave the way for more trade and investment with India via the establishment of the Thai-Indian business forum.
The forum would serve as an intermediary with the state to turn obstacles into opportunities.
Delta Electronics plans to invite local suppliers to invest in making car parts for the growing auto industry in India.
Last week, the BoI opened its 14th overseas representative office in Mumbai to facilitate trade and investment and support Thai firms in investing or doing business in India. Thai investment in India was only U$110 million from April of last year to March.
Some major Thai corporations already active in India are Chareon Pokphand Plc in agriculture and food, Srithai Superware Plc in kitchen ware and Dusit Thani Plc in hotels.
Udom Wongviwatchai, secretary-general of the BoI, said yesterday that there were six sectors of interest for Thai investors – agriculture goods, automobile parts, electric appliances and parts, construction, real estate and hotels, and power generation, especially in northeastern India, such as Assam, which is an abundant source of oil and natural gas.
The BoI is ready to assist Thai investors with trade and investment information, sourcing potential Indian business partners or negotiating with the Indian government on reducing trade and investment obstacles.
Some hurdles are tax duplication, a tax system that varies from one state to another, frequent tax structure changes, shortage of skilled workers and obtaining work permits.
India, with the world’s second largest population, offers a huge market with growth potential for various industries, especially in the northeast.
Thai-Indian trade runs about U$10 billion a year and should double in five years under the revised free trade agreement for 82 goods that should be finalised this year.
