President of the India-Thai Business Association, Satish Sehgal, is looking forward to new opportunities for trade between India, Myanmar and Thailand
Satish Sehgal, president of the India-Thai Business Association, shares the opinion that India's "Look East" policy will turn Thailand into a gateway for economic and business cooperation with the 10-country Asean Economic Community.
At present, bilateral trade between Thailand and India is worth over US$9 billion per year. Over the next three years, the value is forecast to rise to $14 billion.
"Most Thai exports to India are industrial goods such as chemicals, plastic products and automotive parts. Of the 1.1 billion Indian population, about 300 million have a relatively high purchasing power, averaging Bt600,000 per person per year. India also has a large number of billionaires - the third highest among Asian countries after China and Japan.
"For Thai business people wanting to invest in India, they should start with trading and then investing. If you can sell a lot of products in India, then you may consider setting up factories there. Investors from Malaysia, Singapore, South Korea, China and Japan have all invested in India.
"In Bangalore, for example, many buildings have been constructed by foreign contractors, so Thai builders should consider competing for contracts in India. Recently, the Indian government granted a $500 million credit facility to Myanmar, part of which will be used to finance the construction and improvement of highways in Myanmar.
"This will help make up the 1,400-kilometre, three-nation highway linking India's northeast with Myanmar and Thailand via the northern province of Chiang Rai. At present, goods from Thailand have to be shipped via Singapore before reaching the Indian ports of Chennai or Calcutta.
"Usually, it takes up to 15 days to reach the final destination. Shipping costs are also very expensive compared to the cost of shipments from Thailand to Britain.
"Once construction of Myanmar's Dawei deep-sea port and industrial estate is completed in the next three years, the three-nation highway link will be beneficial, allowing more efficient transportation of goods from Thailand to India and vice versa.
"Both India and Thailand will be able to tap Myanmar's market more efficiently from their national borders via container trucks. Most of the roads exist but their condition needs to be improved and connections built to facilitate container traffic.
"The Dawei deep-sea port will also play a crucial role in boosting trade and investment among the three nations. From the port of Chennai, India, it takes only three days to reach Dawei. Then, it takes another day to arrive at the Thai province of Kanchanaburi, which will be connected with Myanmar's Dawei port via a new highway.
"This will open up new business opportunities for Thai products to reach India in a timely manner. For example, Thai fruits such as rambuttan, longan and pineapple could soon penetrate the Indian market. At present, it takes too much time to deliver these fruits, and shipping is also too expensive.
"Among the major Thai investors in India at present are Thai Summit Group, which has six factories in India for production of automotive parts, while Tata Group is a major Indian investor in Thailand's steel and IT sectors.
"About 1 million Indian tourists also visit Thailand annually. Arrivals are forecast to rise to an annual 1.6 million in the next three years. They like Thailand because it is not expensive and has something for everyone in the family. The husband can play golf while his wife goes shopping, and their teenage kids love Siam Centre and other attractions.
