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India-Thailand Economic and Commercial Partnership
Thailand has embarked on a policy of entering into Free Trade Agreements (FTA) with several partners viz. Japan, China, Australia, New Zealand, India, Mexico, Peru, Bahrain and recently with EU. The Framework Agreement on India-Thailand FTA was signed in Bangkok in October 2003. An Early Harvest Scheme (EHS) eliminating duties on 82 products (now 84) came into force in September 2004. Minister level meetings held on 31 August 2012 on the sidelines of ASEAN Economic Ministers in Siem Reap, Cambodia to discuss status of ongoing negotiations on bilateral comprehensive FTA. The Second Protocol to Amend the Framework Agreement for Establishing FTA between Thailand and India was signed during the visit of Thai PM to India in January 2012. 28 rounds ofIndia-Thailand Trade Negotiations Committee (ITTNC) meetings have taken place so far. The India-ASEAN Agreement on Trade in Goods was signed in Bangkok in August 2009. It was operationalized vis-à-vis Thailand on January 1, 2010. The Services and Investment chapters of the India-ASEAN FTA were concluded in December 2012 and signed in September 2014.
2. Bilateral Trade has multiplied eight times since 2000 to reach US$ 8.69 billion in 2013.During the period January-October, 2014, bilateral trade is US$ 7.37 billion [Export from India - US$ 2.61 billion and Export from Thailand - US$ 4.76 billion].
Bilateral Trade Data (Amount in billion US$)
Source: Ministry of Commerce, Govt. of Thailand
3.Investments: Indian FDI into Thailand is estimated to be around US$ 2 billion since 1970s. In 2012, 25 investment proposals from India with a value of US $ 200 million were approved. During 2013, 16 new investment proposals worth US $ 53 million were approved. Thailand has invested US$ 179.20 million in India[from April, 2000 to September, 2014].
4.Indian companies in Thailand: The Tata group has growing business interest in Thailand with Tata Motors forming a joint venture (JV) with Thonburi Automotive Assembly Plant Co. to form Tata Motors (Thailand), which has launched a pickup truck in the Thai market in March 2008; Tata Steel having invested in the largest Thai steel manufacturer Millennium Steel to create Tata Steel Thailand; and Tata Consultancy Services having a long presence. The Aditya Birla group, Dabur, Lupin and NIIT are among the other major Indian companies doing business in Thailand and reflecting the diverse sectors of interest. Kirloskar Brothers Ltd opened its office in Bangkok and Punj Lloyd group entered into a Joint Venture with a Thai company. BEML has also started supplying heavy earthmoving equipment through a local partner. Kalpataru Power Transmission Limited, India in consortium with CHC Engineering Co. Ltd., Thailand secured a contract worth US$ 60 million with Electricity Generating Authority of Thailand, for supply and construction of overhead transmission line. Indian software Company Polaris has set up an office to enter the banking and insurance sectors of Thailand.
5.Thai companies in India:Leading Thai companies in the fields of Agro-processing, construction, automotive, engineering and banking have active and growing business presence in India. Major Thai companies active in India are - C P Aquaculture (India) Ltd., Ital Thai Development Pcl., Krung Thai Bank Pcl., Charoen Pokphand (India) Private Limited, Stanley Electric Engineering India Pvt. Ltd., Thai Summit Neel Auto Pvt. Ltd., Thai Airways International Pcl, Precious Shipping (PSL) of Thailand, Dusit Group (Hotel & Hospitality Industry), Pruksa Real Estate PCL (Real Estate business), SirithaiSuperware PCL (Melamine tableware manufacturing) have invested in India.
6. The Indian Embassy in Bangkok regularly facilitates the visit of Indian business delegations, organizes Buyer Seller Summit for various Indian Export Promotion Councils and support Indian companies to participate in trade fairs and exhibitions. The Embassy in association with the Ministry of Development of North Eastern Region (DoNER) and Indian Chamber of Commerce (ICC), Kolkata organized an "India-Thailand Business Conclave with special focus on North Eastern States of India" on 17 June, 2013.Presentations on investment opportunities available in North Eastern States of India were also made. This Business Conclave provided detailed information to the Thai participants, to understand the opportunities and other incentives/facilities available for investment in these focus sectors in North Eastern states of India. An "Evening of Wine Tasting" was organized by the Embassy in association with the Agricultural and Processed Food Products Export Development Authority (APEDA) of India on 6th September, 2013 at India House, Bangkok.A small documentary film on Indian wines was also shown to the guests, which highlighted the Indian wine industry and explained the business prospects available in this sector.
7. A CII CEO's delegation comprising of 13 leading industrialists representing sectors such as IT, Engineering, Medical Devices, Energy and Automobiles etc; visited Bangkok from 19-21September 2013, to understand the economic environment and gain a perspective on emerging sectors and explore strategic business opportunities in Thailand. On 21 March 2014, Embassy organized a Business Meeting with Chief Executive Officers/Representatives of various Indian Companies operating in Thailand and Thai Companies operating in India. Apart from representatives of companies, representatives of Thai Board of Investment, Federation of Thai Industries, and Department of Industrial Trade Promotion also attended the event. Details of investment opportunities available for Thai investors in India were also disseminated during the meeting. The event was successful in strengthening and promoting trade and economic activities between the two countries. A delegation of Indian Industry Association (IIA), an apex body of Micro Small and Medium Enterprises'(MSME), comprising of approximately 20 industrialists belong to Small & Medium Industries visited Bangkok on 21 and 22August, 2014. The objectives of the visit were to explore the Thai market for MSME products, co-operations & partnerships with Chamber of Commerce & Industry and other MSME Associations in Thailand, interaction with Government officials to explore bilateral exchange of business and investment opportunities.On 13 December 2014, Embassy organized an event at India House, Bangkok to promote Indian Tourism in Thailand.
India - Thailand Relations