Thai firms looking to invest US$3bn in India

A number of companies from Thailand are looking to invest US$3 billion in India over the coming three years in sectors including energy, infrastructure and metals

April 23, 2018

The investment commitment comes amid improving bilateral ties between India and Thailand, especially after Thai PM Prayut Chan-o-cha attended India’s Republic Day 2018 celebrations

Currently, around 30 Thai companies operate in India, including food company Charoen Pokphand, construction company Italian-Thai Development and Siam Cement Group

Investment by these firms have been aided by the second free-trade agreement which India signed with the 10 members of the the Association of Southeast Asian Nations (ASEAN)

Thailand has also invited Indian companies to investment in the country; As many as 40 Indian companies have invested in Thailand, including Tata Group, Aditya Birla Group and Ranbaxy

Certain Thailand-based companies with operations in India are looking to make fresh investment in a range of sectors to help increase their gains from the country’s economic growth. The Thai companies are looking to invest around US$3 billion over 2018-20, according to a report by the Press Trust of India (PTI) on April 23rd, citing the executive director and consul of Thai Trade Center, Suwimol Tilokruangchai. The investment will target green and brown field projects, including energy, infrastructure and metals. Ms Tilokruangchai said that the companies see good opportunity in India’s fast-growing market. The commitment comes amid improving bilateral relations between India and Thailand, especially after Thailand’s Prime Minister Prayut Chan-o-cha attended India’s Republic Day 2018 celebrations.

Currently, there are around 30 Thai companies operating in India. They include – food company Charoen Pokphand (India) Pvt Ltd, construction company Italian-Thai Development PCL, Stanley Electric Engineering India Pvt Ltd, Siam Cement Group PCL, among others. Investment by these firms have been aided by the second free-trade agreement which India signed with the 10 members of the the Association of Southeast Asian Nations (ASEAN) – Indonesia, Vietnam, Thailand, Singapore, Malaysia, Philippines, Cambodia, Myanmar (Burma), Laos, Brunei. Thailand has the second largest economy in the ASEAN bloc. Beyond economic and commercial cooperation, India’s relations with Thailand covers areas pertaining to culture, science and technology, information and communication, education, agriculture.

The Thai government has also invited Indian companies to investment in the country. As many as 40 Indian companies have invested in Thailand so far, including Tata Group, the Aditya Birla Group, Ranbaxy Laboratories Ltd, Kirloskar Brothers Ltd, among others. Investment by such Indian companies in Thailand has crossed US$2 billion. This growing trade relation is expected to receive a boost with the three-day long Thailand Week 2018 that is scheduled to be jointly held in June in Mumbai by Thailand’s Ministry of Commerce, and Thai Trade Centre Mumbai. Bilateral trade between the two countries has grown by eight times since 2000 to reach US$10 billion in 2017. Ms Tilokruangchai added that both Thai and Indian government should create an improved ecosystem to encourage increased investment.