About Thai-Indo Trade Relation
Thai-India Economics Overview
India is considered as a Thailand’s prominent partner in South Asia in many aspects. Since both countries have established diplomatic relations for over 70 years, the relationship grew from strength to strength especially in terms of bilateral trade which continuously increased. In the past two decades, with regular political exchanges, growing trade and investment, India’s ties with Thailand have now evolved into a comprehensive partnership. One of the strongest link between the two countries is that forged by Buddhism. Nearly 95% of Thailand’s population aligns itself with the teachings of Theravada Buddhism. The shared link of Buddhism is reflected in regular pilgrimages to places of Buddhist interest in India by a large number of Thai people.

Diplomatic relations between India and Thailand were established in 1947, soon after India gained independence. India's Andaman and Nicobar Islands share a maritime border with Thailand along the Andaman Sea. The past few years since 2001 have witnessed growing warmth, increasing economic and commercial links, exchange of high-level visits on both sides, and the signing of a large number of Agreements leading to a further intensification of relations.

Thailand and India are cooperating in various multilateral fora like India's dialogue partnership with ASEAN, the ASEAN Regional Forum (ARF), and the East Asia Summit, the sub-regional grouping BIMSTEC involving Bangladesh, India, Sri Lanka, Thailand, Myanmar, Nepal and Bhutan, and trilateral transport linkages with Thailand, Myanmar and India. India is a member of the Asia Cooperation Dialogue (ACD) initiated by Thailand in 2002 and of the Mekong–Ganga Cooperation (MGC), a group of six countries.

Bilateral trade of Thai-India has grown significantly and is growing at a “tremendous” rate and stood at USD 8,815 million in 2015-16 and is expected that it will continue to grow as our free trade agreements which provide us lower tariffs and trade barriers. A target of increasing bilateral trade from $ 8.8 billion in 2015-16 to $ 16 billion by 2021 has been set by businesses from both countries.

Top 10 Products Imported by India from Thailand (Million US$)
HS Code Description Jan-Dec 2014 Jan-Dec 2015 Jan-Dec 2016 Jan - Feb 2017
84 Machinery 1335.490252 1394.604451 1172.969721 203.936807
85 Electrical Machinery 676.242221 708.029115 736.086764 129.440696
39 Plastic 716.722709 703.240642 732.415252 107.358401
87 Vehicles, Not Railway 390.641413 433.191981 414.197661 59.300831
29 Organic Chemicals 489.39156 396.802517 366.602832 73.08407
40 Rubber 370.342463 323.100269 288.449087 39.217286
73 Iron/Steel Products 145.155514 179.124244 156.202463 20.809878
74 Copper+Articles Thereof 96.843256 121.824452 145.126908 33.603511
72 Iron And Steel 149.167108 150.904991 136.905381 19.418193
38 Misc. Chemical Products 75.305984 68.040908 110.050272 15.096788
Top 10 products Exported by India to Thailand (Million US$)
HS Code Description Jan-Dec 2014 Jan-Dec 2015 Jan-Dec 2016 Jan - Feb 2017
71 Precious Stones,Metals 716.100077 618.055988 615.783889 124.499698
84 Machinery 274.383937 249.438198 260.196306 41.334252
87 Vehicles, Not Railway 244.555746 227.455524 222.215724 29.804801
03 Fish And Seafood 105.668711 128.54707 193.360856 36.836872
29 Organic Chemicals 186.243448 244.470692 178.018626 25.711267
72 Iron And Steel 307.728127 144.841971 125.335324 60.962943
09 Spices,Coffee And Tea 95.966469 99.843268 107.733102 28.607116
32 Tanning,Dye,Paint,Putty 77.818074 87.297162 97.043082 14.892882
85 Electrical Machinery 70.169418 75.6969 91.259764 15.195307
30 Pharmaceutical Products 74.890521 88.56279 87.912429 11.408782
Free Trade Agreement

1. India-Thailand Free Trade Agreement (FTA)
The Framework Agreement for Establishing the Free Trade Agreement between India and Thailand had been done in Bangkok on October 2003 and has been entered into force on January 2004. Thailand and India have agreed to reduce tariffs between items to accelerate tax cuts (Early Harvest Scheme) for 83 items. These 83 items will be having a tax rate of 0% since September 2006. Thailand-India are still negotiating further liberalization to cover the rest of the items.

For more info on the same kindly follow the link below:-

2. India-Asean Free Trade Agreement (FTA)
The trade agreement between India and ASEAN has already come into effect with the exception of Indonesia. Starting from January 2010, the tariff liberalization under the India-ASEAN FTA was to gradually cover 75% of the two-way trade between India and the ASEAN member countries. The FTA will lead to the elimination of tariffs on some 4,000 products including electronics, chemicals, machinery and textiles. Of these 4,000 products, 3,200 products will have duties reduced by the end of 2013, while duties on the remaining 800 products will be lowered to zero or almost zero by the end of 2016.

Web Links for India – ASEAN Section