India – Thailand relationship has eventually grown stronger due to bilateral relations between the nations since 1947. The two countries will have diplomatic relations for 75 years in 2022. Moreover, Thailand’s “Look West” and India’s “Act East” policies lays the groundwork for expansion. Note that, this expansion targets the economic and diplomatic cooperation in a constructive manner for both the nations. This event sparkled a new spectrum for investors from both the nations to start business in Thailand or India.
The two sides kicked off the 75th anniversary celebrations by originally holding a logo design competition in January. This attracted 798 entries from both countries. The logo will be utilized all year long for commemoration events that will be planned in Thailand and India. This includes the use of the logo in exhibitions, academic exchanges, and numerous commercial and cultural events. This showcases the cohesion and friendliness between the two countries.
Development of the Relationship: Overview
On this historic occasion, it’s important to comprehend the relationship’s steady development over the past few years. Additionally, it also calls on for some actions to explore some areas where further development is necessary.
One of the first countries to establish diplomatic ties with India was Thailand. In addition, the historical ties between the two countries’ peoples and economies contribute to further solidify their relationships. They collaborate on numerous local projects as partners.
If one considers trade and business, then from 1991 to 2022, India exported an average of $121.7 million to Thailand. As of December 2021, it has achieved an all-time high of $5,532 million. This makes India the fourth-largest trading partner in ASEAN.
Both countries have a close relationship when it comes to security cooperation. Even collaborative defense production has been started. A vibrant India-Thai Joint Commission meets on a monthly basis to assess the status of projects in bilateral interactions. This year is intended to be the ninth meeting’s date.
India and Thailand should step up their collaborative engagements to boost this long relationship of 75 years. It is because, countries around the world are recovering from the COVID-19 pandemic’s negative consequences. In some important areas, there is also a need to investigate and maximize the potential between the two.
India – Thailand Relationship Easing Travel across ASEAN Countries
The eagerly anticipated India-Myanmar-Thailand Trilateral Highway is anticipated to increase land connectivity. This connection will get a boost through Northeast India and Southeast Asia in terms of physical connection component. The trilateral highway serves as a vital gateway to ASEAN. This is for the development of India’s northeast and promotes both economic and people-to-people connections. In terms of multi-modal connectivity with India and Myanmar, the project’s completion will also represent a significant advancement for Ranong port. India wants to expand the highway so that it passes through Vietnam, Laos, and Cambodia. Since 2020, there have also been discussions of Bangladesh joining this partnership. The merger aims the Trilateral highway seeking improvement in the nation’s connectivity and trade opportunities.
In terms of multimodal connectivity with India and Myanmar, the project’s completion will also represent a significant advancement for Ranong port. India wants to expand the highway so that it passes through Vietnam, Laos, and Cambodia.
India is involved in two portions of this 1,360 km Trilateral Highway that primarily pass through Myanmar, which has been plagued by unrest and violence since the February 2021 coup. There have been hundreds of civilian casualties in the Chin state, where significant construction is taking place, and there are growing efforts among the ethnic tribes to render the military personnel ineffective. When these crimes will stop and highway construction will commence again is difficult to say.
India-Thailand Collaborations in Tourism Industry
Another area that needs improvement is tourism. Indian travelers to Thailand made US $24.9 million in profit prior to the outbreak and the ensuing travel ban. Also a popular tourist destination for Thais is India. There is a common thread connecting both countries—Buddhism. For religious pilgrimages, millions of Thai Buddhists travel to India’s Lumbini, Bodh Gaya, Sarnath, and Kushinagar. For its stunning splendor, snow, and skiing chances, the Himalayas continue to be a popular tourist destination, and New Delhi plans to promote them even more. Recently, the Thai prime minister approved a plan to create an air travel bubble to entice more Indian tourists to the country. If conventional flights are still suspended, countries now have an alternative for letting visitors fly through the air travel bubbles. At the end of March, the Indian government started operating foreign flights again.
Trade & Economic Collaborations between India and Thailand
Additionally, there is enormous potential for the expansion of trade between Thailand and India. Addressing concerns with the tariff lines and potential trade obstacles will be crucial for achieving this. For boosting trade and investment, it will be crucial to reduce import duty fees through bilateral agreements.
The Bangkok-based India-Thai Chamber of Commerce offers its members the chance to collaborate with both governmental and non-governmental organizations to advance their businesses.
Additionally, there are chances for developing economic relationships between the two. The recently introduced Bio Circular Green economic model for inclusive and sustainable growth, also known as Thailand 4.0, lends further weight to the collaboration currently in place. To strengthen economic ties between India and Thailand, the Confederation of Indian Industry (CII) has organized and co-hosted conferences, summits, and business gatherings. The Bangkok-based India-Thai Chamber of Commerce offers its members the chance to collaborate with both governmental and non-governmental organizations to advance their businesses.
The Bottomline
Thailand and India have a lot of potential to work together because of the start-up scene’s phenomenal rise in India, where many have achieved unicorn status. It is vital that “Atma Nirbhar Bharat” arise because it can make investments in India to close supply chain gaps. Thailand can also trade with the Indian diaspora and the rest of the world for goods created in India.
Many of the options identified for fostering additional cooperation between New Delhi and Bangkok are still available while the 75th anniversary celebrations are ongoing. Thus, by opening up channels of communication and solidarity between the two, the occasion offers an excellent opportunity to further increase the strategic, security, and economic cooperation.
If you are an Investor, this India – Thailand Relationship reinforcement will be a boon for you. If you are from India and willing to start your venture in Thailand, we will help you throughout the process. Our strong connections with government authorities will ease out the process as you won’t have to think about the complexities. Our team comprises expert law and accounting professionals with fluency in English communication. Therefore, language will never be a barrier when you speak with us. Email us your requirements at [email protected].
