EXIM to support Thai businesses targeting India

EXIM to support Thai businesses targeting India

By THE NATION

Adul Chotinisakorn, director-general of the Department of Foreign Trade

The Export-Import Bank of Thailand (EXIM Thailand) stands ready to support Thai entrepreneurs' penetration of Indian market, Adul Chotinisakorn, director-general of the Department of Foreign Trade, Ministry of Commerce, and the director of Export-Import Bank of Thailand (EXIM Thailand), said on Wednesday (September 4).

He added that amidst the global economic uncertainties as a result of the trade war between the US and China, Thai entrepreneurs needed to manage international trade risks in conjunction with exploring new business opportunities.

One of the options is to expand trade and investment to new markets with high potential, such as India, the seventh largest country in the world with the world’s second largest population as well as tremendous cultural diversity, hence a demand for a large variety of products..

Adul was speaking at a seminar titled :India: The Window of Opportunities” organized by EXIM Thailand in collaboration with the Ministry of Commerce in Bangkok.

He added that to successfully enter the Indian market, Thai entrepreneurs need to understand the diversity among Indian states and devise a market strategy that can respond to demand of consumers in each state.

For example, the state of Maharashtra with Mumbai as the capital plays the most significant role in Indian economy. Entrepreneurs should approach middle-class consumers and build linkage to Indian supply chains.

Meanwhile, Tamil Nadu state with Chennai as the capital is the production hub of India and home to the country’s largest number of special economic zones. They number around 40 and have the largest pool of skilled labour force, particularly engineers.

Prospective industries for Thai entrepreneurs include textiles, processed foods, automobile and information technology. Moreover, Gujarat state with Gandhinagar as the capital is well equipped with industrial clusters, infrastructures and rules and regulations conducive to business operation as well as large seaports ranking among the top of the country, making the state a prime location for setting up a production base for both domestic distribution and export.

The EXIM Thailand director added that the Indian states with high potential are mostly situated in the western and the southern regions of the country.

Each state has remarkable features of its own and different business environments in respect of availability of infrastructures, industrial clusters, rules and regulations, and market size. Each state should be viewed and treated as one single country so that its specific characteristics are understood before business engagement.

He said that EXIM Thailand stands ready to support Thai entrepreneurs aspiring to start up or expand business in India through the provision of financial tools comprising working capital as well as medium- and long-term financing, export credit insurance and investment insurance.

India is Thailand's tenth largest export market. Thai-Indian trade reached US$ 12.463.75 billion in value, comprising Thai exports to India worth $7.632 billion and Thai import from India of $4.863 billion. 

Major export goods from Thailand include chemicals, plastic resin and air-conditioners and parts, while main import goods from India are gems, silver and gold, and mechanical machinery and parts."

“EXIM Thailand is ready to support Thai entrepreneurs in their penetration of new frontier markets such as India by, among others, offering of knowledge and information on cultural diversity among Indian states. This will facilitate their selection of the right location which is one of the top priorities for business establishments. Credit and insurance facilities are also available to enhance access to new business opportunities in the forms of both trade and investment finance and risk management tools to ensure their competitiveness on a stable and sustainable basis," Adul added.

The Thai National Shippers’ Council (TNSC) urged the Commerce Ministry and related agencies this week to break into India’s booming market.

The Indian market offers big opportunities amid demand for rubber, rubber wood, food, jewellery and repairing chemical spray, and Thailand has the potential to compete there while benefiting from the FTA agreement between the two countries, TNSC president Kanyapak Tantipipatpong said.

She added the government should hasten Thai-Sri Lankan FTA negotiations.

Source: https://www.nationthailand.com/business/30375821