Thailand is expressing strong interest in increasing imports from India and is actively seeking the removal of tariff and non-tariff barriers to facilitate smoother trade relations, according to recent statements by Foreign Minister Sihasak Phuangketkeow. This comes as Thailand recognizes India's growing economic influence and seeks to strengthen bilateral ties through enhanced trade and investment.
Sihasak Phuangketkeow's recent visit to Delhi underscores the importance Thailand places on its relationship with India. Discussions during the visit are expected to cover a wide range of topics, with a focus on boosting economic cooperation, addressing trade imbalances, and exploring new avenues for collaboration.
Thailand's proactive stance on increasing Indian imports reflects a broader strategy to diversify its trade partners and capitalize on India's expanding market. By reducing tariff barriers, Thailand hopes to make Indian goods more competitive in its domestic market, benefiting consumers and businesses alike. The specific tariff barriers that Thailand is seeking to address have not been detailed, but they are likely to include import duties and other levies that increase the cost of Indian products. Non-tariff barriers, such as complex customs procedures and regulatory requirements, may also be targeted for simplification and removal.
Bilateral trade between India and Thailand has witnessed substantial growth in recent years, more than doubling from US$7.9 billion in 2015 to over US$16 billion by 2023. However, trade has been structurally imbalanced, consistently favoring Thailand. In fiscal year 2025, the bilateral trade between India and Thailand stood at US$ 19.07 billion. India's imports from Thailand were valued at US$ 14.26 billion in FY25. In 2024, the total bilateral trade was about US$14.94 billion. Thailand's exports to India amounted to US$10.11 billion, while India's exports to Thailand were US$5.92 billion in 2023.
Major items imported by India from Thailand in FY25 include natural or cultured pearls, precious or semiprecious stones, nuclear reactors, machinery, electrical machinery and equipment, plastic and articles, and organic chemicals. Engineering items, including machinery, vehicles, iron, steel, and electrical machinery, constitute a significant portion of the trade between the two countries.
Thailand's "Look West" policy and India's "Act East" policy, have strengthened bilateral relations, with Thailand now ranking as India's 5th largest trading partner within ASEAN. This strategic alignment has fostered greater economic collaboration and positioned Thailand as a key regional partner in India's engagement with ASEAN and other multilateral frameworks.
Going forward, both countries are expected to focus on deepening trade agreements, reducing regulatory barriers, and identifying new areas for cooperation. This includes promoting investments in key sectors such as infrastructure, manufacturing, and technology, as well as enhancing people-to-people exchanges and cultural understanding. By addressing existing challenges and capitalizing on emerging opportunities, India and Thailand aim to forge a stronger, more balanced, and mutually beneficial economic partnership in the years to come.
