India’s Exports to Thailand in 2025_ A Growing Trade Partnership

1. India’s Exports to Thailand in 2025: A Growing Trade Partnership The Foundation of Indo-Thai Trade Relations

2. India and Thailand have cultivated a robust economic relationship over the years, rooted in historical, cultural, and strategic ties. As we move through 2025, the trade partnership between these two nations continues to flourish, with India’s exports to Thailand showcasing significant growth and diversification. This blog explores the dynamics of India’s exports to Thailand in 2025, highlighting key sectors, recent developments, and the strategic initiatives driving this vibrant partnership, with insights drawn from recent Indo Thai news.

3. The bilateral relationship between India and Thailand is underpinned by centuries-old cultural exchanges, shared maritime boundaries in the Andaman Sea, and mutual participation in regional frameworks like ASEAN, BIMSTEC, and the Mekong-Ganga Cooperation. These ties have fostered a conducive environment for trade and investment. In recent years, India’s “Act East” policy and Thailand’s “Act West” policy have aligned to strengthen economic collaboration, making Thailand a pivotal partner for India in Southeast Asia. According to Indo Thai news, this strategic alignment has significantly boosted bilateral trade, with Thailand ranking as India’s fourth-largest trading partner in the ASEAN region in 2023.

4. In 2023, bilateral trade between India and Thailand reached US$16.04 billion, with India exporting US$5.92 billion worth of goods to Thailand. By December 2024, India’s exports to Thailand were recorded at US$394 million, reflecting a slight decrease from the previous year but still indicating a robust trade flow. The trade figures for the fiscal year 2024-25 (April-October) show India’s exports to Thailand at US$2.77 billion, underscoring the sustained momentum in this partnership.

5. Several strategic initiatives have fueled the growth of India’s exports to Thailand in 2025. Indo Thai news highlights the role of regional frameworks and bilateral agreements in enhancing trade connectivity. The ASEAN-India Free Trade Agreement (FTA), effective since 2010, has facilitated tariff reductions, enabling smoother access for Indian goods in the Thai market. Additionally, negotiations for the India-Thailand Comprehensive Economic Cooperation Agreement (CECA) have progressed, with the 29th round held in 2015, aiming to further liberalize trade and investment.

6. Maritime connectivity is another critical factor driving trade growth. In 2019, Memorandums of Understanding (MoUs) were signed between Thailand’s Ranong Port and Indian ports in Visakhapatnam, Chennai, and Kolkata. These agreements have reduced shipping times from 10-15 days to just seven days, enhancing the efficiency of trade routes. Indo Thai news reports that Thailand’s Southern Economic Corridor (SEC) project, which includes the development of Ranong Port, aims to position Thailand as a logistics gateway to South Asia, further boosting trade with India.

7. The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) also plays a pivotal role. A recent statement from a Thai Ministry of Foreign Affairs spokesperson emphasized that enhanced maritime connectivity in the Indian Ocean will boost intra-BIMSTEC trade, benefiting India and Thailand. This aligns with Thailand’s vision of leveraging its strategic location as a gateway to ASEAN, as noted in Indo Thai news.

8. Despite the positive trajectory, India’s exports to Thailand face challenges. The trade balance remains skewed, with India importing US$11.95 billion from Thailand in 2024 compared to its exports of US$5.7 billion, resulting in a trade deficit. Key Thai exports to India include plastics, rubber, machinery, and automotive parts, which dominate the trade flow. Additionally, India’s exports in certain categories, such as oil meals and marine products, saw declines in December 2024, attributed to global supply chain disruptions and competition from other countries.

9. However, opportunities abound. Thailand’s growing middle class, projected to reach 14 million by 2030, presents a lucrative market for Indian consumer goods, particularly in food processing, textiles, and electronics. The ASEAN Economic Community (AEC) blueprint 2025 further enhances opportunities by promoting seamless movement of goods and a predictable investment regime. Indian businesses can leverage Thailand as a gateway to access the US$2.8 trillion ASEAN market, as highlighted in recent Indo Thai news.

10. Looking ahead, India’s exports to Thailand are poised for further growth in 2025 and beyond. The focus on digital technology, renewable energy, and electric vehicles presents new avenues for collaboration. India’s expertise in IT and pharmaceuticals aligns with Thailand’s demand for innovative solutions, while joint initiatives in renewable energy can address global sustainability goals. The ongoing development of the India-Myanmar-Thailand highway project will enhance physical connectivity, further boosting trade.