Thailand and India could serve their respective "Look East"
and "Look West" economic policies amid slowing growth globally, as
both countries have high potential to expand and serve as gateways to the Asean
and South Asian markets, a seminar heard.
New transport routes linking
Thailand, Myanmar and northern India totalling 1,306 kilometres, which will be
completed in 2016, should promote stronger connectivity between India and
Thailand and greatly facilitate business growth.
At the seminar on "Promoting
Business Linkages between Asean and India's Northeast" held in Bangkok
yesterday, Indian officials and businesspeople said Thai investors should not
overlook their country, whose economic growth is among the world's strongest.
The event brought a delegation of
about 22 people from India to meet with 150 Thai businesspeople in a quest
tighter trade and investment.
Amid slowdowns in many countries,
including China and Japan, the two economic giants of Asia, the Indian market
has one of the highest potentials for Thai traders and investors. Also,
Thailand could have high potential for Indian businesses looking for closer
ties with the Asean region.
Indian Ambassador to Thailand
Anil Wadhwa said that the Kingdom's Look West policy and India's Look East policy
would present greater opportunities for both countries to promote trade and
investment between the two regions.
"The Asean Economic
Community, which by 2015 will bring greater integration in the region, will
also have higher attractiveness for Indian enterprises wishing to trade and
invest more in the region," he said.
"The highway connecting
India, Myanmar and Thailand scheduled [for completion] in 2016 should serve to
boost growth of trade and investment from India to Thailand and from Thailand to
India and around the region."
Moreover, the bilateral
free-trade agreement between Thailand and India, which will soon be completed
as a comprehensive pact covering trade in goods, services and investment,
should help promote stronger trade.
Trade between the two nations is
projected to reach US$14 billion by 2014, from the current $9 billion (Bt275
billion), Wadhwa said.
So far, Thailand and India have
agreed to liberalise trade under the early-harvest pact covering 84 products.
The comprehensive FTA should be ratified by the end of this month and
implemented early in the new year. However, there could be a delay in its
implementation, according to the Trade Negotiations Department.
Commerce Minister Boonsong
Teriyapirom said that with a dynamic and ever-expanding economy, India,
especially the northeastern region, had high potential as a bridge between
Thailand and India.
"The northeastern region of
India will be a key strategic location that will provide Asean member countries
with numerous trade and investment opportunities," Boonsong said.
Trade between Asean and India is
expected to reach $90 billion by 2015, up 45 per cent from 2010. The value of
Asean-India trade was registered at $76 billion last year.
Asean and India between them
possess one of the most immense potentials in the world. The two regions have a
combined population of 1.8 billion, or 26 per cent of the world's people. India
has the third-largest economy in Asia, just behind China and Japan. Its gross
domestic product was valued at $1.7 trillion last year.
Satish Sehgal, president of the
Indian-Thai Chamber of Commerce, said Thailand would greatly benefit from the
improved road connectivity, which would facilitate export of many goods to
India and Myanmar.
He pointed out that India had
high demand for everything, whether goods or services. Not only is its growing
middle class fuelling this demand, India has a large upper-income market.
Products that have potential for
higher trade in India are fruits and other foods, products of small and
medium-sized enterprises such as fresh flowers, gems and ornaments. Services
such as restaurants, hotels, and tourism could also see greater opportunities
as Indian travellers favour Thailand, while there are only 180 Thai restaurants
in India.
About a million Indian tourists
visit Thailand annually. It is expected that this number will reach 1.6 million
in the next three years, Sehgal said.
Chen Numchairisi, vice chairman
of the Federation of Thai Industries, agreed that the road linkage should
promote trade and investment between Asean and India. However, the respective
governments should also streamline customs procedures to facilitate trade and
investment.
Mark Laitflang Stone, managing
director of Avenues, which operates educational institutions in India's
northeast, said many Indian enterprises would like to form joint ventures with
Thai investors to set up business in this and other countries.
He said India should also serve
as educational centre for Thai students to learn English at lower cost than in
other countries.
PETCHANET PRATRUANGKRAI
Business & Investment Opportunities
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