India Thailand Trade Talks Focus on Market Access and ASEAN FTA

India and Thailand focus on expanding market access, strengthening business ties and advancing the AITIGA review as bilateral trade reaches a record $20.93 billion and India’s trade deficit widens.

There are efforts underway for closer economic relations between India and Thailand, with each country seeking increased access to markets along with greater trade and investments. This takes place in the context of a rising trade imbalance between the two countries while also undertaking the review of the ASEAN-India Trade in Goods Agreement (AITIGA).

The Commerce and Industry Minister, Mr Piyush Goyal, is meeting Thailand’s Deputy Prime Minister and Commerce Minister, Mr Suphajee Suthumpun, in New Delhi, where both are deliberating on ways to enhance economic partnership. Both parties stress the importance of enhancing business-to-business connections and fostering collaborations to achieve balanced growth.

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An important issue discussed is the continued evaluation of AITIGA. India and Thailand evaluated the progress of the evaluation and underscored the importance of increased involvement through the India-Thailand Joint Trade Committee. Both countries strive to take the process further in a limited time period and establish a more equitable and reciprocal framework that gives more market access.

The significance of the discussion is increasing due to the increased level of trade between both nations, with the trade deficit with Thailand getting bigger. The value of trade between both nations reaches a new high of $20.93 billion in 2025. The exports from India to Thailand amount to $5.06 billion, while the imports are $15.87 billion, giving a trade deficit of $10.81 billion.

India's third largest trading partner in ASEAN is Thailand, after Singapore and Indonesia. The major export items from India to Thailand are machinery, engines & engine parts, precious stones, marine products, motor vehicles & auto parts, organic chemicals, aluminium, pharmaceutical products & spices. Some of the export items from Thailand to India are palm & vegetable oils, plastic materials, chemicals, machinery, electrical/electronic equipment and rubber articles.

The expanding trade deficit has mostly been associated with the rising trade between Thailand and India, especially in sectors such as oils and precious stones and metals. In this light, both governments are aiming to resolve issues relating to market access in addition to developing business opportunities and supply chain links.

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Both parties also address more aggressive trade promotion and better business networking. A Thai business delegation, representing industries including space technologies, cold chain logistics, food processing, innovation, and health and wellness, takes part in the talks.

The recent development is an indication of India’s wider efforts at improving trade relations with ASEAN nations, along with ensuring that there are some more balanced results achieved through its current trade agreements. In the case of Thailand, gaining better access to India’s huge market will be beneficial for firms operating in different industries.