The export sector has been a key driver of Thailand’s economy, even more so during the ongoing pandemic. The Ministry of Commerce has been implementing a policy of in-depth trade cooperation between Thailand and second-tier cities, to drive exports via mini-FTAs. Thailand has now inked its third mini-FTA, this time with India’s Telangana State, to better access the market of 40 million people.
Commerce Ministry Permanent Secretary Boonyarit Kalayanamit, acted as Thailand’s representative in signing the mini-FTA. Mr. Jayesh Ranjan, Principal Secretary of the Industries & Commerce Department of the Telangana government, represented Telangana State. The 1-year agreement will facilitate the exchange of markets-related information and trade connectivity, for products such as medicines, IT goods, and furniture. The agreement is also expected to bolster business connectivity, cooperation with startup firms, incentives-granting, and online trade platforms.
Minister of Commerce Jurin Laksanawisit said India, with its 1.3 billion-strong population, is among Thailand’s key markets. The world’s 6th largest economy is Thailand’s top trade partner in South Asia, with bilateral trade amounting to 15 billion USD in 2021. This was a 52% increase over 2020’s figure. Mr. Jurin said there is vast room for the growth of the Thai-India trade, especially after the pandemic resolves. He has previously led business delegations to India twice, illustrating the importance being placed on expanding trade with India.
Telangana State has a population of 40 million and Muslims account for about 13% of this figure. The state’s GDP stands at 132 billion USD or 5% of India’s GDP. The mini-FTA is expected to help grow Thai exports to India by at least 4-5%.
According to the commerce minister, 3 out of 10 city-level mini-FTAs have been signed so far. These comprise the mini-FTAs with China’s Hainan province, Japan’s Kofu city, and India’s Telangana state. A fourth mini-FTA will be signed this month with China’s Gansu province. (NNT)
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