Issue 53

With its close proximity to ASEAN, India can become a potential gateway for Thai companies to penetrate South Asia’s markets.

“Indian consumers like Thai people and love Thai products because they trust the quality,” Department of Foreign Trade (DFT) Deputy Director General, Adul Chotinisakorn tells the audience at the Insight into India seminar hosted by the DFT on May 12 in Bangkok. “Thai products for infants and children and tableware are well-recognised in India for their safety, modern designs and first-grade quality.”

India has the second largest population in the world, of which an estimated 350-400 million people can be classified as middle class consumers. Data from the Ministry of Commerce shows that India is the 15th largest trading partner with Thailand. Bilateral trade amounted to US$7.9 billion in 2015.

The two countries have a free trade agreement (FTA), and the India-ASEAN FTA became effective in 2010. This eliminated tariffs on many products such as electronics, chemicals, machinery and textiles, or approximately 80% of total goods traded between India and ASEAN countries.

Chotinisakorn encourages Thai exporters to tap the super rich Indians, who prefer jewelry, home appliances and home decorations.

“To penetrate India’s market, building brand awareness is vital and it is better to enter the market by selling your own brand. Now, Thai brands are among international brands Indian consumers trust and are eager to buy,” he says.

Major Thai investors in India include the CP Group, Delta Electronics, Ital-Thai, Pruksa Real Estate and Srithai Superware, while the major Indian companies in Thailand are Tata Group and Indorama.

Piti Srisangnam, a professor from Chulalongkorn University, says that India represents a huge market with different strata of consumers from the wealthy to the middle class and lower income.

“If you want to approach Indians customers, you have to adapt your products to meet local tastes,” he says. “You must see India as 29 different states, which have their own local rules and regulations. After that, choose the potential state you want to explore and market your products.”

Professor Srisangnam believes that the policies of the Indian government, including Act East and Make in India will make the country one of the major global production hubs in the future, and that Thailand can cooperate with India in several industries, such as the automotive.

“When the India-Myanmar-Thailand Trilateral Highway is completed later this year, it will help cut logistics cost and the time taken transporting products between Thailand and northeastern India,” he says. The 1,400km highway will stretch from the city of Moreh in eastern India through Myanmar to Mae Sot in Thailand’s Tak province.

Words by Somhatai Mosika