PM Modi’s visit to Thailand to boost trade ties

New Delhi

Thailand, India's fourth largest trading partner in the ASEAN region, had bilateral trade worth $16.04 billion in 2023. Exports from India to Thailand reached $5.92 billion, while imports totaled $10.11 billion. This strong economic bond is driven by opportunities in infrastructure, agro-processing, pharmaceuticals, automotive, tourism, and renewable energy sectors.

A key initiative in the bilateral trade relationship is the Early Harvest Scheme (EHS), launched in 2004, covering 83 products under the proposed India-Thailand Comprehensive Economic Cooperation Agreement (CECA). Additionally, the ASEAN-India Trade in Goods Agreement (AITIGA), effective since 2010, has been pivotal in enhancing trade. Both sides are reviewing AITIGA to simplify and facilitate trade for businesses.

Indian exports to Thailand include jewelry, machinery, chemicals, vegetables, and medicinal products, while imports from Thailand include fats and oils, chemicals, and machinery. Thailand's investment in India has grown in sectors like infrastructure, real estate, agro-processing, food processing, and renewable energy. Notably, in 2021, Global Renewable Synergy Co Ltd made a significant investment of $453.29 million in India’s renewable energy sector.

BIMSTEC brings together seven member states with a combined GDP of $5 trillion and a population of 1.7 billion people. PM Modi’s visit offers a significant opportunity to strengthen India’s economic ties with Thailand and the broader BIMSTEC region.