InfoQuest, (Sept. 09, 2019) -- Mr. Adul Chotinisakorn, director general of the Department of Foreign Trade (DFT), revealed that DFT will co-host the seminar "Expanding India and South Asia market to hedge against trade war impacts" together with the Office of SMEs Promotion (OSMEP), the Securities Exchange of Thailand, and the School of Economics of Khon Kaen University on September 10. The seminar aims to get Thai enterprises understand the market opportunities and business guidance in Bangladesh, Bhutan, Nepal, Sri Lanka and other South Asia countries, and India. India and South Asia are home to huge potential and diversified consumer groups, particularly India.
"Currently the global economy is under the pressure of US-China trade war, showing a trend of sustained slowdown. As a result, Thailand is facing dropped export value from its major export markets and mounting risks. Therefore, the country should wean of the reliance on single market to diffuse ricks. DFT believes that India and South Asia hold huge potential and opportunities of trade and investment, capable of boosting Thailand's export and counter the impacts of trade war," said Mr. Adul.
According to the director general, MOC plans to boost Thailand-India cooperation through strategic partnership for closer relationship, push for the long-term and sustainable trade and investment between the two countries, and encourage Thai SMEs and small and middle-sized investors to operate and promote brands in India, and expand markets in Indian provinces with potential; the tariff concession and other preferential rights under ASEAN-India FTA and Thailand-India FTA will be harnessed. The two FTAs cover 4,700-plus kinds of products, including fresh fruits, processed sea food, and other farm produce, chemicals, plastic particle, gem, steel, aluminum, and other industrial products.
The national economy and development policy rolled out by Indian Prime Minister Narendra Modi is designed to grow India into a strong power with a huge and fast-growing economy, and will boost the market demand and purchasing power in India market. In 2018, the export of Thai capital goods and raw materials to India registered sharp increase. For instance, the export amount of chemicals was 693.52 million U.S. dollars (+25.24 percent), rubber products 417.12 million U.S. dollars (+34.84 percent), copper and copper products 294.14 million U.S. dollars (+ 29.02 percent), and steel and steel products 190.43 million U.S. dollars (+ 73.96 percent). The export of many other products to India also posted high increase. That is because the poor production capacity of India's industries cannot meet the ever-increasing demands. Besides, in exporting to India, Thailand enjoys transportation advantages, and a sound image of Thai products in India market.
In the first six months (January-June) of 2019, Thailand's trade amount with India was 6.56267 billion U.S. dollars, a year-on-year increase of over 4.70 percent; that includes: export value 4.06637 billion U.S. dollars, a year-on-year increase of 3.42 percent, and import value of 2.4969 billion U.S. dollars, a year-on-year increase of 6.87 percent, hence a trade surplus of over 1.57008 billion U.S. dollars for Thailand. The major exports of Thailand to India include: chemicals, gem and jewelry, plastic particle, air-conditioner and parts, auto, and equipment and components. The main products Thailand imports from India include: gem and jewelry, nuggets of gold and silver, machinery and parts, chemicals, mental ores, scrapped metal products, and auto parts.
In January-June, 2019, over 1.95904 billion U.S. dollars of value was acquired from the preferential rights of ASEAN-India FTA, up 4.87 percent compared with the 1.86812 billion U.S. dollars in the same period last year and accounting for 59.95 percent of the total export value under the FTA. Products with the highest use value of preferential rights include: alloy copper wire, crude oil, television tuner, -1-chlorine-2, 3-propylene epoxide (epichlorohydrin), tractor parts, air-conditioner parts, stainless steel scrap, phenol, and methylbenzene. Besides, the use value of the preferential rights of Thailand-India FTA topped 340.22 million U.S. dollars, dropping 7.89 percent compared with the 369.37 million U.S. dollars during the same period of last year and accounting for 49.67 percent of the total export value under the FTA. Products with the highest use value of preferential rights include: air-conditioner, polycarbonate, freezer, epoxy resin, Polypetal resin, polyethylene, polyamide, reciprocating piston engine, aluminium alloy, air pump or vacuum pump assembly, and acrylic polymers.
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