India - Thailand Economic and Commercial Relations

Major Items of Indian Exports

During 2004-05, Gems and Jewellery was the largest commodity exported to Thailand and accounted for 34.27% of our exports to that country. Other major items of exports with percentage share in export basket were Non-Ferrous Metals (11.73%), Prmry & Semi-Fnshd Iron & Stl (5.8%), Oil Meals (5.58%), Drugs,Phrmcutes & Fine Chemls (5.57%), Machinery and Instruments (5.28%), Inorganic/Organic/Agro Chemls (4.3%), Residl Chemical & Allied Products (2.61%), Transport Equipments (2.43%), Manufactures of Metals (2.4%), Electronic Goods (2.19%), Dyes/Intmdtes & Coar Tar Cheml (2.04%), Marine Products (1.87%), etc.

Major Items of Indian Imports

During the year 2004-05, the major products imported from Thailand with their percentage share in import basket were Electronic Goods (18.78%), Machinery Except Elec & Electronic (10.67%), Artfcl Resns, Plstc Matrls, etc. (8.51%), Transport Equipments (7.29%), Other Commodities (6.91%), Elec Machry Excpt Electronic (4.98%), Oth Txt Yrn, Fabs, Madeup Artl (4.76%), Iron & Steel (4.26%), Natural Rubber (4.17%), Perls Prcus Semiprcs Stones (3.49%), Organic Chemicals (3.44%), Manufactures of Metals (3.2%),etc.

Details of item-wise bilateral trade statistics for the period Apr–March (2004-05)
is annexed.

Indian investments in Thailand are mainly in areas which are relatively high-tech and even capital intensive and cover a wide range of products and activities including production of rayon fibre, steel wires and rods, paper-grade pulp, chemicals, drugs and pharmaceuticals, nylon tyre cord and real estate. The major Indian groups involved are the Aditya Birla Group, Ballarpur Industries, Baroda, Rayon Group, Usha Martin Industries, Ranbaxy Laboratories, Lupin Laboratories and the Ansals and the Uniworth International Ltd. M/s Nippon Denro Ispat in collaboration with Thai Special Steel Pic has won approval of the Board of Investment of Thailand to set up a cold rolling mill in Thailand and has also been granted approval of setting up a 2 million ton sponge iron plant in Thailand.

In the post-liberalisation period of the Indian economy, Thailand has emerged as an important investor in India with foreign direct investment (FDI) inflows of about Rs.2.52 billion (US $ 67.8 million) from August 1991 to September 2004. Thailand now ranks 27th largest investor in India and the third largest from ASEAN region after Singapore and Malaysia.

Telecommunications and fisheries accounted for chunk of the Thai investment while Thai investors have also evinced interest in real estate and tourism sectors, light engineering industry and petrochemicals. The food processing and agro-industries in Thailand are well developed and hence, these sectors offer enormous opportunities for Indo-Thai Joint Venture in India.

There is a trade agreement signed between India and Thailand in December 1968 under which a JTC was established which has met ten times so far. The 11th meeting of JTC was held in Bangkok from 26-27 Sept. 2003.

There exists an India -Thailand Joint Commission, at the level of EAM, which held its 4th meeting in New Delhi from February 13-14, 2003. There is a Joint Business Council at business level between the respective Chambers of two countries. The last meeting of JBC was held in Bangkok on October 9, 2003.

The following bilateral agreements exist between India and Thailand in the
economic field:-

i)	Bilateral Trade Agreement
ii)	Agreement for the Avoidance of Double Taxation
iii)	Air Services Agreement
iv)	Cooperation Agreement between Board of Investment of Thailand and the Foreign Investment Promotion Board of India
v)	A Bilateral Investment Promotion and Protection Agreement has been signed byboth the countries in July 2000.
vi)	Framework Agreement for establishing an FTA dated Oct. 9, 2003.