Bangkok--4 Sep--EXIM Bank
Mr. Adul Chotinisakorn, Director General of Department of Foreign Trade, Ministry of Commerce, and Director of Export-Import Bank of Thailand (EXIM Thailand) revealed at a seminar titled "India: The Window of Opportunities" held by EXIM Thailand in collaboration with the Ministry of Commerce at Siam Kempinski Bangkok Hotel that, amid the global economic uncertainties as a result of the prevailing trade war between the US and China, Thai entrepreneurs should manage international trade risk in conjunction with exploring new business opportunities. One of the options is to expand trade and investment to new frontier 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 demand for consumption in great variety.
Mr. Adul said that, to successfully enter the Indian market, Thai entrepreneurs need to understand its 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 has the most significant role in Indian economy. Entrepreneurs should approach middle-class consumers and build linkage into 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, i.e. approximately 40 with the largest pool of skilled labor force, particularly engineers. Prospective industries for Thai entrepreneurs include textile, 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 production base for both domestic distribution and export.
EXIM Thailand Director further said that principal 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 environment from one another 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 focused before business engagement. EXIM Thailand stands ready to render supports to Thai entrepreneurs aspiring to start up or expand business in India with provision of full-fledged financial tools, comprising working capital as well as medium- and long-term financing, export credit insurance and investment insurance. This aims to enable Thai entrepreneurs to be ready and confident in penetrating Indian market, having sufficient competitiveness and efficiency in trade and investment risk management and free from concerns about Indian buyers and counterparts' non-payment.
India is Thailand's tenth largest export market. Thai-Indian trade reaches 12,463.75 million US dollars in value, comprising Thai export to India worth 7,600.32 million US dollars and Thai import from India of 4,863.43 million US dollars. Major export goods from Thailand include chemicals, plastic resin and air-conditioners and parts, while main import goods from India are gems, silver billet 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 entrepreneurs' 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," added Mr. Adul.