Mr. Pisit said India is a principal strategic country as it is a new frontier market with high potential and high economic growth prospects of around 7%-8% through the next consecutive years. In quarter 2 of 2018, India's GDP growth was 8.2%, the highest in several years. Key factors are the significant size of domestic consumption and influx of foreign direct investment (FDI) to the manufacturing sectors, in particular, driven by the government policy aiming to attract foreign investors and facilitate their investment. Moreover, in view of export in the service sectors, particularly IT and consultant services, India is a global hub of such services. The country has long been in trade deficits due to the fact that domestic manufacturing has been unable to adequately accommodate the increasing domestic demand. However, at present, the government has increasingly focused on FDI to relieve and offset the persisting trade deficits. The Indian government has also put in place policies conducive to FDI. Some of them are Make in India scheme, upgrading of infrastructures, rationalization of rules and regulations for more convenience in business operation and investment.
EXIM Thailand President further said that Thai goods with potential for Indian market making are mostly those in shortage or in high demand, particularly capital goods and raw materials serving production bases in India, e.g. auto parts, plastic resin, primary chemicals and packaging. Meanwhile, businesses in which Thai entrepreneurs have investment potential include auto parts plants in linkage with automobile manufacturers in India, especially Japanese ones, processed foods/agriculture and agricultural logistics (cold chain), wholesalers and retailers to respond to the increasing urbanization, and such service businesses as construction, interior design/system works and restaurants. Thai entrepreneurs should first employ the "single segment" strategy because India is a very big country with tremendous diversity, speaking more than 1,600 languages, covering an area which is the seventh largest in the world, composed of 29 states and 7 union territories, and having a population of more than 1,300 million people, which is the world's second largest.
"EXIM Thailand is ready to work with Thailand Team leveraging on our strength as a special purpose financial institution with a mission to promote Thai export, import and investment both at home and abroad while offering an array of financial products, to help Thai private entities brave all challenges toward the achievement and growth of Thai-Indian trade and investment endeavors," added Mr. Pisit.