Trade with India ‘fails to hit potential’

India and Thailand should forge closer bilateral ties and aim to boost trade, which has failed to reach its potential despite both sides agreeing to sign a free trade pact, commerce and industry officials from India say.

Amitabh Kant, department of industrial policy and promotion secretary at India’s Ministry of Commerce and Industry, said trade and investment between the two countries was extremely low.

Speaking at a “Make in India” roadshow in Bangkok yesterday, Mr Kant said he hoped both countries would enjoy rapid growth and better economic opportunities in the next three years. “India and Thailand will grow stronger together in terms of trade,” he said.

According to Mr Kant, trade volume between the countries reached US$8.6 billion last year, with about US$5.62 billion in Thai exports to India and $3.04 billion in Indian exports to Thailand. He said that was low, given the untapped potential for closer ties.

Meanwhile, Satish Seghal, president of the India-Thai Business Association, urged both nations to accelerate the Thai-India Free Trade Agreement (TIFTA) to speed up economic ties, which would help boost trade in the long-term. He said growth has been slow since Thailand and India pledged an FTA in 2001. The two countries signed the framework agreement in 2003.

About 200 delegates and businessmen from both countries took part in the programme, including the Thai ambassador to New Delhi and Indian ambassador to Thailand.

Among those who attended the programme was a young Thai massage and spa entrepreneur, who said his family is interested in expanding its spa business to India. “India’s market for spa and healthcare services looks interesting to us,” he said, suggesting that executives from Thailand’s big companies investing abroad think of expanding to India.

“Some Thai investors are scared that India’s poverty would limit their investment while others do not accept products made in India because they think the products are low quality, despite the fact many Indian products reach global standards,” he told the Bangkok Post.

Initiated by the India government last year, the “Make in India” programme is hosted by the Thai embassy in New Delhi, the Indian embassy in Bangkok, and Thailand’s Foreign Affairs Ministry. Thailand is India’s fourth largest trading partner in Asean after Singapore, Indonesia and Malaysia.