Bangkok Post – India, Thailand to deepen ties with trade committee

Trade barriers will be tackled by JTC

PUBLISHED : 10 Jan 2025 at 04:00

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Thailand and India plan to establish a Joint Trade Committee (JTC) between the nations to mitigate trade barriers and increase investment, according to the Commerce Ministry.

Following a meeting with the Indian Ambassador to Thailand on Jan 8, Commerce Minister Pichai Naripthaphan said the talks to establish a JTC are expected to take place within the next 2-3 months.

Mr Pichai said JTC meetings would let both sides address policy-level economic, trade and investment matters comprehensively, covering goods, services and investments.

In addition to the JTC, Thailand urged India to expedite certification processes for key Thai export products such as air conditioners, plastic pellets, particleboard, MDF wood, and rayon fibres.

Thailand also requested faster approval of import licences for rubber tyres and colour TVs.

Mr Pichai said Thailand is ready to fully support and collaborate on finalising an updated Asean-India Trade in Goods Agreement in 2025, as targeted.

The two sides also considered capitalising on a Thailand-India free-trade agreement to drive trade and investment in alignment with their full economic potential, said Mr Pichai.

Thai officials invited Indian investors to explore opportunities in the Eastern Economic Corridor, particularly in establishing data centres.

Both nations also agreed to promote value-added products, including plastic pellets, chemicals, gems and jewellery, machinery, auto parts, rubber products, cassava-based goods, textiles, and processed wood, which complement each other’s industries.

This initiative aims to strengthen the supply chain’s resilience, treating the two nations as a unified production base in the region.

They also agreed to boost participation in trade promotion activities in both countries to foster business networks, expand trade opportunities, and strengthen private-sector collaboration.

The two countries will expedite the integration of cross-border payment systems between Thailand’s PromptPay and India’s Unified Payments Interface. This initiative, now in its final stages, should facilitate consumer transactions and enhance competitiveness in the tourism sectors of both nations.

India is Thailand’s top trading partner in South Asia. In the first 11 months of 2024, bilateral trade totalled US$15.8 billion, growing by 6.06% year-on-year.

Thai exports to India were valued at $10.5 billion, with key products including plastic pellets, chemicals, vegetable and animal oils, gems and jewellery, and steel products.

Imports from India amounted to $5.3 billion, with key items including gems and jewellery, machinery and components, chemicals, plants, and metallic minerals. Thailand recorded a trade surplus of $5.2 billion.

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