Thailand private sector seeks more access to India’s growing economy
Thailand’s private sector urged the government to negotiate more free-trade privileges with India to expand markets for Thai products after statistics showed the south Asian country could be one of the largest potential trade partners.
Trade value with India in 2023 was valued at 555.21 billion baht. Thai exports were worth 348.55 billion baht and imports were valued at 206.66 billion baht, Thai Chamber of Commerce vice chairman Wisit Limluecha said on Friday.
Thailand enjoyed a trade surplus of 141.88 billion baht, an increase of 25.33% year on year, he added.
In the first two months of this year, bilateral trade rose to 90.78 billion baht — 55.62 billion baht from exports and 35.16 billion baht from imports — he said.
“India is the world’s fifth-largest economy with constant GDP expansion [6.84% in 2022 and 6.05% in 2023],” he said. “With a population of over 1.3 billion, India is expected to enjoy 6.81% economic growth this year.”
Wisit pointed out that India has a middle class numbering around 350 million people aged 20-49 years, who possess high purchasing power for Thai products that are already popular there.
He added that several Thai companies had already invested or opened their branches/facilities in India, including Charoen Pokphand Foods, Thai Union Group, SCG Trading, and Thai Summit Autoparts Industry Co.
“The key to success in penetrating Indian markets is to find the right partners,” said Wisit. “India is a highly diverse country with over 380 spoken languages across 29 states and 7 union territories that also have different cultures, weather, and business practices."
He advised Thai entrepreneurs to survey the target customers in each area and set the prices suitable for the population’s purchasing power.
“Thai businesses could start by focusing on products under FTA deals to benefit from tax breaks and other supporting measures,” he said. “To excel on this front, the government must continue negotiating for more FTA privileges with India, either under bilateral terms or as part of the India-ASEAN agreements, of which Thailand is a member.”
The top five Thai exports to India last year comprised chemicals, plastic pellets, gems and jewellery, machinery parts, and metal products. Top five imported products from India are gemstones, machinery parts, metal scrap, chemicals, and automotive parts.
