Anand Sharma, Union Minister for Commerce & Industry, in a business meeting with  Abhisit Vejjajiva, Prime Minister of Thailand, here today, expressed optimism over the growing trade and investment between the two countries. Sharma in his inaugural address stated that, “Economic engagement between the two countries paved the way for rapid economic liberalization and the implementation of the Early Harvest Scheme led to robust growth. 

Bilateral trade between India and Thailand has grown 6 fold in the last decade and touched US $ 6bn last year, growing at over 30% from the previous year.” While reiterating India’s commitment to deepening integration with South-East Asia, he said that, “Enhancing the share of manufacturing in the GDP is a priority for India and Thailand can play a major role in enhancing the share of manufacturing as they have a proven expertise in the area and has a significant share in their GDP” ,

Sharma, focusing on the development of North-East Region and its inclusion and integration with the rest of the world, said, India’s look-East and Thailand look-West policy to work in unison for the development of North- East region. The region can work as the link between these two countries. Both the sides view the partnership being integral to the goal of industrial development of the North- East region. 

He further informed, “We recognize that Thailand has also identified this part of the country as an important investment destination, holding the potential to emerge a sub-regional market centre and a land bridge which would connect Thailand with the mainstream in India. This part of the country is home to rich forest produce and investments in bamboo and rubber industry in the North East would be mutually rewarding for our people”. 

Prime Minister of Thailand while speaking on the occasion said, “Thailand’s Look- West Policy sets the stage in consolidating our substantive bilateral engagement. The last decade has seen a considerable expansion in our economic and political ties with the exchange of several high-level visits from both sides underscoring our mutual commitment for elevating the economic engagement.” He expressed the hope that the trade between the two countries will hit US$ 10bn mark by the end of next year. 

During the business conclave both the sides highlighted the need to cooperate in sectors like Pharmaceuticals, infrastructure, food processing, automobiles sector and chemical and allied industry.  Sharma highlighted that, Indian companies have invested US $ 2bn in the Thai economy and companies from Thailand have invested nearly US $ 1bn. “Complementary strengths of our industry make us natural partners and the advantages of geography only reinforce this relationship’ he added. 

The field of infrastructure is an area of high priority for India and the next 5 years will see investments of over US $ 1 trillion in this sector.  Sharma invited Thai companies for a partnership in this critical sector. The Minister said, over 8,00,000 Indian tourists visit Thailand and almost an equal number of tourists from Thailand visit India. We would like to take this beyond just air connectivity and in this context, the tri-lateral highway project linking India and Thailand through Myanmar is an area of high priority for us, he informed. 

The Minister stressed the value of Thai partnership in developing the entire value chain of agriculture including investments in agro-processing to curb post-harvest wastage which is unacceptably high (30-35% of the total produce). The Minister called for Thai companies to invest in developing cold-chains, warehouses and food processing facilities which will be a contribution not just to the Indian economy but also to global food security. We expect investments of US $ 200bn in the agro processing sector and growth of 20% in the next five years. In this sector, we have allowed 100% foreign direct investment and Thai investors with their strengths in agro-processing would be invaluable partners, he added.

IIFL