IndiaThailandTrade&Commerce:AnOverview

India and Thailand launched their bilateral and regional FTA talks in 2003 and the Early Harvest Scheme has already led to an upsurge in bilateral trade. Trade between India and Thailand grew from USD 4.7 bilion in 2007 to USD 8.2 billion in 2011 and the proposed IndoThai bilateral FTA is set to double the bilateral trade volume to USD 14 billion. Both countries treasure shared historical and cultural linkages and are actively furthering the cause of strategic economic partnership building with sociocultural diplomacy. Indias Look East policy and Thailands Look West policy compliment and reinforceeachotherwithaviewtobroadeneconomiccooperation. During the January 2012 state visit of Thai Premier Ms. Yingluck Shinawatra to India, India and Thailand has signed the Second Protocol To Amend the Framework Agreement, which would enable third country invoicing for gear boxes made in India, and twodoor refrigerators would be added to the list of products traded under the Early Harvest Scheme launched under bilateral FTA. This would help boost Indian exportstoThailand,aswellasthebilateraltrade. The Indian export basket to Thailand mostly comprises gem and jewellery, metal ores, chemicals, machinery, vegetables, electrical household appliances and pharmaceutical products. Major imports include chemicals, polymers of ethylene, auto components, rubber, iron and steel. For Thailand Tourism is major revenue grosser with a projected 10 lakh Indian tourist footfall scheduled for 2012. Amount of Foreign Direct Investment InflowsintoIndiafromThailandfromApril2000toJanuary2012wasRscrore426.99or USDMillion94.76,whichasapercentageoftotalFDIInflowswas0.06.

India and Thailand have already worked together in regional forums like the East Asia Summit, ASEAN, the ASEAN Regional Forum, BIMSTEC and the Mekong Ganga Cooperationinitiativereflectingthestrategicpartnershipinbilateralrelations. IndialooksforwardtoThaiinvestmentinitsagroprocessingsectortocurbpostharvest wastage. The Dawei port project is set to provide a shorter shipping route and lower transaction costs for the India ASEAN trade, including Indias bilateral trade with Thailand. IndiaThailandBilateralTrade20072011(USDMillion) Year 200708 200809 200910 201011 Export 1,810.87 1,938.31 1,740.16 2,792.80 Import 2,300.93 2,703.82 2,931.52 4,272.09 TotalTrade 4,111.80 4,642.14 4,671.68 7,064.90

Source:MinistryofCommerce&Industry,GoI TheICC,whichisheadquarteredinKolkata,andhasafocusedNorthEastIndiainitiative, believes the East and the NorthEast can play a significant role in enhancing India SouthEast Asia business cooperation because of their proximity to SouthEast Asian markets,andthevariousmutualsynergies,whicharealreadypresent.