B2B portals reducing India-Thailand trade barrier: DITP, Thailand
SME Times News Bureau | 02 Jul, 2013
| Top Stories
Business-to-Business (B2B) e-marketplace and trade directories are
helping reduce India-Thailand trade gap, said Mrs. Srirat Rastapana,
Director- General, Department of International Trade Promotion
(DITP), a government organization under the Ministry of Commerce,
In an exclusive interview with SME Times, Mrs.
Pichalai said, "The new technology that is used in the market is
assisting small and medium enterprises (SMEs) add considerable value to
their business, various trade directories and trade portals have helped
facilitate trade between India and other countries and this is reducing
the barrier to trade between Thailand and India."
its role as the main promoter of Thai exports. The organization provides
a comprehensive range of services for Thai exporters and international
investors wishing to do business with Thailand. Acting as a one-stop
service center, the trade body provides trade information and advisory
services, match-making link-ups, business networking, statistics on Thai
products and manufacturers, as well as helps businesses find suitable
Excerpts of the interview...
Tradeindia.com (managed by Infocom Network Ltd.) has signed an MoU with
Thailand's Department of International Trade Promotion (DITP), Ministry
of Commerce, effective April 2013. How this will benefit SMEs of both
Srirat Rastapana: According
to the MoU, Thaitrade.com and strategic partner will work together to
promote Thai SMEs and Indian SMEs through online channel (world class
e-marketplace), online activities, online and offline business matching
event and also business opportunity will be increased by market analysis
and trade information sharing.
What do you think are the challenges Thai businesses face while trying to do business in India?
Srirat Rastapana: Any
Thai company investing into India has to pass the threshold test of
whether such investment is permitted under the government's Foreign
Direct Investment (FDI) regulations. FDI regulations apply irrespective
of the vehicle of investment, i.e investment, joint ventures or
The next challenge is to identify the vehicle of
investment. If 100% investment is allowed under the FDI policy, the
investor has the option to set up a wholly owned subsidiary (WOS). If
not, a joint venture is available as an option, provided an Indian
partner is found as a co-shareholder; this could be one of the many
challenges faced by Thai businessmen.
Also if the Thai company
decides to invest in India and chooses either a Wholly Owned
Subsidiaries (WOS) or a joint venture, funding is the next key issue.
Unlike in most other countries, Indian subsidiaries of foreign holding
companies cannot be funded by a monthly or yearly transfer of funds from
the bank account of the holding company.
of some Indian companies has lately been adversely affected due to cash
flow problems in the market. The Thai company should look at bank
guarantees (BGs) or letters of credits (LCs) to secure payments.
Typically BGs are provided by authorized banks as performance guarantees
or guarantees against warranty remediation and LCs are provided (by
banks) to secure supply of goods and equipment.
These are some of the major challenges most Thai companies face while trying to do business with India.
How this platform will work?
and Thailand are neighbours and are linked by millennia-old ties of
culture and civilisation. Indo-Thai cooperation is growing in multiple
dimensions - emphasizing that India and Thailand stand to benefit from
increased trade. The Prime Ministers of both countries recently have
directed their respective commerce ministers to work out the
India-Thailand Free Trade Agreement (FTA) "at the earliest". When this
FTA will come to reality?
- Co-Branding : to create marketing synergy by leverage a wide range of
marketing activity involving the use of two brands (Thaitrade.com &
- Co-Member : to exchange and increase member information through dual member campaign with special privilege offering
- Sourcing Pool / Market Expansion : to increase sale opportunity and
sourcing channel through buyer matching activity and international road
- Knowledge Sharing : to transfer knowledge by training / seminar / workshop activities
Srirat Rastapana: FTA between Thailand
and India has made much progress since the beginning, however there are
still a lot of topics that we need to cover in detail to create mutual
benefits between both sides such as Trade in Goods, India still not open
its market for many Thai major export products. As for service trade,
India wants Thailand to allow Indians to come to Thailand and set up
business freely, while India will not allow Thai business person to open
their business or still have barriers for Thai business person to
invest in India.
There are still many standards, including food
and agriculture products, between Thailand and India that are not the
same. However, for both countries to emerge victorious we must set
asides our differences and aiming for mutual benefits through our trade
How you see this handshaking?
Srirat Rastapana: I see it in a very positive way. We can already see that there has
been a good and a very healthy past relationship with regards to
business between India and Thailand from our FTA's between the 2
countries. We already now have two FTA's. The Thai-India FTA under the
Early Harvest Scheme and the ASEAN - India agreement.
The 3 main
areas in which the two countries need to focus more on is Trade,
Investments & Services. Both countries will benefit by concentration
on these 3 fields.
Last year (2012-13), bilateral trade between
Thailand and India crossed USD 9.2 billion. Over the past five-years,
trade increased at over 15 percent per annum. But still the share of SME
sector is very limited as the tourism and food processing sectors are
the only major contributor in bilateral trade. Tell more about your
focus in Indian SME sector.
Srirat Rastapana: India which is home
to about 48.8 million small and medium business (SMB) units is all set
to become the largest SME nation globally, Indian SME space today is
largely dominated by micro scale businesses, contributing 95 percent of
the SME landscape, followed by small scale businesses contributing 4.8
percent and the rest 0.2 percent by medium scale businesses. As Thailand
has already turned into a global tourism spot and Thai food has always
been in a great demand in India this could be the reason why these two
sectors caught pace over the others, both countries are making efforts
to push the other sectors also, as the FTA's are one of the major
efforts put in by both countries.
Also the other reasons why only
tourism and food processing sectors are the major contributors in
bilateral trade could be due to the absence of adequate and timely
banking finance, limited capital, non-availability of suitable
technology, low production capacity, week marketing strategy, to which
we are aware that the Indian and Thai government agencies are working
hard to resolve these problems.
What are the possible areas of cooperation with India in SME sector?
Srirat Rastapana: The possible areas of cooperation between India and Thailand
are very wide. Increasing bilateral trade can give opportunities for
Thailand to explore the SMEs sectors in India.
The SME sector in
India produces a wide range of industrial products such as food
products, beverage, tobacco products, cotton textiles, wool, silk,
furniture and fixtures, paper & paper products, but products like
artificial gems and jewellery, food products, fresh flowers, ornaments
and handicrafts have good potential for higher trade and cooperation
with India and Thailand.
There have also been several factors
that have contributed towards the growth of Indian SMEs and few of these
include; funding of SMEs by local and foreign investors, the new
technology that is used in the market is assisting SMEs add considerable
value to their business, various trade directories and trade portals
have helped facilitate trade between India and other countries and this
is reducing the barrier to trade between Thailand and India. So we can
surely see a great potential for increasing are trade with Indian SME
sectors. We are also aware that the Indian Government has been pushing
and also financially supporting the SME sector for trade between ASEAN
For Thailand side, the Department of International
Trade Promotion has just introduced new program for Thai SMEs, "SMEs
Proactive". The program aims to support Thai SMEs to expand their trade
to overseas markets all over the world through various incentive
mechanisms. India is one of our target countries on which Thai SMEs pay
Both the countries have highlighted growing
India-Thailand business opportunities, which are the result of
Thailand's "Look West Policy' and India's 'Look East Policy". Your view
Srirat Rastapana: My view on this is very positive as
Thailand and India could serve their respective "Look East" and "Look
West" economic policies even though the slowing growth globally, as both
countries have high potential to expand and serve as gateways to the
Asean and South Asian markets.
The new transport routes which are
linking Thailand, Myanmar and northern India totaling up to 1,306
kilometers, which will be completed in 2016. This development should
promote stronger connectivity between India and Thailand and greatly
facilitate business growth. Thailand would greatly benefit from the
improved road connectivity, which would facilitate export of many goods
to India and Myanmar, so also India can explore a much larger market.
the ASEAN Economic Community, which by 2015 will bring greater
integration in the region, will also have higher attractiveness for
Indian enterprises wishing to trade and invest more in the region; the
trade between the two nations is projected to reach US$14 billion by
Amid slowdowns in many Asian countries, including China and
Japan, the two economic giants of Asia, the Indian market has one of
the highest potentials for Thai traders and investors. Also, Thailand
could have high potential for Indian businesses looking for closer ties
with the ASEAN region. So far, Thailand and India have agreed to
liberalize trade under the early-harvest scheme covering 83 products,
which shows our interest to do business with India.
Mr.Faruk Abdulsalam. | Tue Sep 10 19:57:18 2013
We are Local gold miners also a representative of many groups of Local Miners of Gold in Obuasi and Tarawa, Western Region of Ghana. We have Gold Dust/Bars for sale at a considerable Price which is below world market price.If you are interested, do not hesitate to get back to us as soon as possible for us to give you our full co-operate offer (FCO). We look forward in doing a long lasting business transaction with you.
We shall consider it a privilege entering into a long a lasting business relationship with you.Thank for your co-operation as we wait for your inquiries.
Gautam Chaudhury | Thu Jul 11 02:54:52 2013
I am interested to be associated with Thai Investors
Zain Alvi : DGM International Market : Aptech Worlwide | Wed Jul 10 03:56:38 2013
We at Aptech Worldwide (Education )are focus on entering in Thailand, we would humbly request your to assist us with the email id of Mrs. Srirat Rastapana, Director- General, Department of International Trade Promotion (DITP), enabling to initiate our first level of discussion before undertaking a visit to the country for a high level discussion.
Your assistance in our endeavour would be highly appreciated.
ravi | Wed Jul 3 06:27:06 2013
This article helps to understand Indo-Thai trad.
Re: Good Insights
VITANZA CLAUDIO | Tue Jul 9 16:55:52 2013
Sale Machines for Food. Pastaio Technical Consultant, Expert
Via Dei Pioppi,13 20090 Cesano Boscone (Mi) Tel. 0039-3391232156 Fax 0039-0248601713
SITe web www.macchinepasta.com
FDI - AGRO PROCESSING PROJECT DEVELOPMENT
ASHOK TODAKAR | Wed Jul 3 02:58:25 2013
WE ARE PVT LTD COMPANY IN WESTERN MAHARASHTRA NEED FDI FOR VARIOUS PROJECT DEVELOPMENT IN WESTERN MAHARASHTRA. WE ARE AGREE TO SUPPLY FOOD AND AGRO PRODUCTS TO THAILAND COMPANY.
Re: FDI - AGRO PROCESSING PROJECT DEVELOPMENT
shivaji salvi | Wed Jul 10 12:09:32 2013
I am interested with u to supply dry fruit products.
| Customs Exchange Rates
|As on 18 Apr, 2021
| Daily Poll
|COVID-19 has directly affected your business
| Commented Stories