Exports from Thailand to India have come down drastically during the past few months. The Thai officials are making every possible effort to restore and increase the bilateral trade. indiamarkets spoke to Wairak Walairat, Director of Thai Trade Centre in India, about the present status of Indo-Thai bilateral trade.

Indiamarkets: What is the present status of bilateral trade between India and Thailand?
Wairak Walairat: After an average of $600 to 800 million worth of bilateral trade in five years since 1995, India and Thailand crossed the $1-billion mark last year, which prompted the two countries to aim for a higher target of $2 billion by 2004. But this year, the bilateral trade has come down drastically. A substantial decline in the trade volume between the two countries in the first four months of 2001 has caused concern. In January-April 2001, the trade volume was only $375 million, a decrease of 14.1 per cent from the corresponding period last year. Exports from Thailand have also declined steeply at 140 million dollars, lower by 45.5 per cent than last year.

Indiamarkets: What are the main reasons for this?
Wairak Walairat: A recent decision by India to impose anti-dumping duty on seven Thai products is the main reason. These include textile items, vitamin pills and Nylon tyre fibres. Apart from these, the customs duty on some of the products are also very high. I request the government to reduce the duty to facilitate greater bilateral trade volume between the two countries. On the other hand, India's exports to Thailand has increased by 7.63 per cent, since Thailand imposes lesser tax compared to India.

Indiamarkets: What are the steps being taken up by your department to promote bilateral trade?
Wairak Walairat: Guided by the growth last year when the bilateral trade reached a figure of $1.19 billion, the Thailand Department of Export Promotion has decided to organise trade expositions in various cities of India. Another trade fair in Mumbai will follow the Bangalore fair. More such fairs will follow depending on their success. Apart from this, we have also set up an office in Delhi for trade promotion. We are also concentrating on improving bilateral trade with other south Asian countries like Bangladesh, Sri Lanka and Pakistan.

indiamarkets: Are you expecting any kind of collaborations between the two countries?
Wairak Walairat: Many of the companies in Thailand are interested in joint ventures with their Indian counterparts. About two to three companies including a handicrafts company and a food processing company have entered into joint ventures recently. The Thai industries are focusing on labour-intensive industries as labour is cheaper in India than in Thailand. Besides, the companies are looking for distributors for their products in India. Taiwan is strong in electronic items, plastics and handicrafts.