Thailand is scheduled to sign a memorandum of understanding (MoU) to form deeper trade partners through a so-called "mini-FTA" with Telangana state in India next month.
Speaking after a meeting yesterday with Indian companies, including members of the India-Thai Chamber of Commerce, India-Thailand Business Association, Thailand-India Business Council and related government agencies, Commerce Minister Jurin Laksanawisit said the two sides agreed to expand cooperation on trade and investment, particularly on the state level.
"Although Thailand and India have already implemented the Early Harvest Scheme, under which tariffs have been waived since 2004 on 82 items [fruits and vegetables, jewellery and automotive products], deeper trade partnerships with states will help boost the economies of the two entities," said Mr Jurin.
He said a draft MoU on the mini free trade agreement (mini-FTA) with Telangana is expected to be tabled for cabinet approval next week.
The MoU came after Mr Jurin paid an official visit to Hyderabad, the capital of Telangana state, in January this year and witnessed the opportunity to expand trade and investment in Telangana's capital city, which is a centre for information technology and pharmaceuticals.
More importantly, the state is committed to providing housing projects for middle-income earners and beefing up infrastructure development.
Thailand also wants to supply furniture, notably from rubberwood, as Telangana has already established a free trade zone for furniture and products such as food, construction materials and tapioca.
According to Mr Jurin, apart from Telangana, the ministry is also pursuing mini-FTAs with other states such as Gujarat, Karnataka, Maharashtra, Kerala and Assam.
Two-way trade between Thailand and India averaged US$10.1 billion over the past five years (2015-19). In 2019, two-way trade amounted to $12.14 billion, down by 2.77% from 2018, with Thailand enjoying a trade surplus of $2.53 billion.
For the first 10 months of this year, two-way trade totalled $7.87 billion, down 24.4% from the same period of last year, with Thailand reporting a trade surplus of $910 million.
According to the Commerce Ministry, Thai exports to India over 2015-19 averaged $6.37 billion.