India’s ‘Seven Sister States’ ripe for investment
Thai-Indian Business Council points to the many advantages its ‘high-end market’ offers to investors, especially in the country’s Northeast
Prim Jitcharoongphorn, chairwoman of the Thai-Indian Business Council, is urging investors to put their money into India’s northeastern region and take advantage of its rapidly growing demand for upmarket goods.
She pointed out that the country’s economy is currently worth 3.9 trillion dollars, is targeting a 7% growth rate in 2024, and has the advantage of a large working-age population.
India has a high demand for goods, she added, but cautioned would-be exporters to recognise that the country has both a high-end market and a lower-end market.
The high-end market, with 300-400 million people, has significant purchasing power and requires premium products, such as jewellery, gemstones, diamonds, and branded goods.
India is both a trading partner and a competitor to Thailand because it has both agricultural and industrial sectors, which is rare. However, India’s diverse geography makes it unique, and any investment or trade must be carefully considered.
Encouraged by the Indian government’s policies to support investments, CPF, Summit Auto Parts, Italthai, SCG, and Srithai Superware have already invested in the country.
The so-called “Seven Sister States” in the northeastern region, a strategic area that the Indian government prioritises and to which Sikkim was recently added, is particularly ripe for investment.
Thailand’s Commerce and Foreign Affairs ministries have discussed with the private sector how Thailand should invest and establish itself as a key trading and investment area in the region. The area is advantageous for business because it takes no more than 2 days by road to transport goods from Thailand, making it closer than New Delhi. In addition, the people in this region have physical features similar to Thais and are fond of Thai products.
The three sectors with investment opportunities in India are processed food, jewellery, and real estate.
Prim recommended that Thai entrepreneurs interested in investing in India should avoid viewing Indians through old stereotypes, as their purchasing power is increasing. They should also study the laws, regulations, rules, and cultural norms thoroughly.
Suchira Panchana, director of the Office of Commercial Affairs in New Delhi, India, suggested that Thai investors and entrepreneurs should create local partnerships. Having a local partner helps reduce operational challenges and enhances understanding of the local market. It also allows products to be adjusted to meet the demands of Indian consumers, she said.
Additionally, participating in trade fairs or business matching programmes can open opportunities to expand networks and reach new customers, he added.
Prim noted that India’s political situation is relatively stable, and the government has policies that encourage investment, with Invest India helping both Indian and foreign investors. In terms of geopolitics, India supports a multipolar world and maintains a neutral stance, which has clearly benefited the country amidst expanding geopolitical conflicts.
