Home Articles Thailand’s Board of Investment comes to India

Thailand’s Board of Investment comes to India

Thailand’s Board of  Investment comes to India

The office of Thailand’s
Board of Investment in Mumbai will aid Thai investors to invest in India as
much as it would, help Indian investors to invest in Thailand

In what is regarded as a
significant development in terms of the growing economic ties between Indian
and Thailand, the Board of Investment (BOI), Thailand, has set up an office at
Mumbai in India. The office, the first to be set in India, apart from
convincing investors to invest in Thailand, will also encourage potential Thai
investors to do business in India. The setting up of the office at Mumbai
coincided with BOI’s road show in India, held between 25 June 2013 and 27 June
2013. A part of the Ministry of Industry, Thailand, BOI also organised a
seminar at Mumbai recently in association with FICCI. Present at the seminar
were Mr Prasert Boonchaisuk, Industry Minister of Thailand, Mr Sachin Ahir,
Minister of State for Industry, Government of Maharashtra (India), Mr Pisan
Manawapat, Ambassador of Thailand to India, Mr Apurva Chandra, Principal
Secretary, Ministry of Industries, Goverment of India, Mr Kumar Mangalam Birla,
Chairman, Aditya Birla Group, and Mr Udom Wongviwatchai, BOI secretary General
and other dignitaries and businessmen.

Speaking at the seminar,
which focused on India-Thailand investment opportunities, Mr Boonchaisuk said,
“As a member of ASEAN, Thailand wants to expand and strengthen its relation
with India. Thailand and India have shared a strong cultural ties as well as
traditional ties. For the past five years, economic tied between the two
countries have been growing from strength to strength.”

Drawing attention to the US$
70-150 mn worth of investment proposals received from India by Thailand BOI, Mr
Boonchaisuk mentioned that in January last year the prime ministers of both the
nations, at the India-Thailand business forum, agreed to establish a high level
of private sector collaboration. Mr Boonchaisuk expressed that he is confident
of the new investment services (BOI office in Mumbai) leading to closer working
relationship between Thai and Indian investors.

Addressing representatives
from both countries, including the vice chairman of the Federation of Thai
Industries, chairman of the Thailand-India Business Council, Chairman of FICCI
Maharashtra State council, and Chairman, FICCI Forum for Economic &
Business policy, Mr Ahir averred that India and Thailand have developed a
strong and mutually beneficial relationship over the past few decades. “I am
happy that BOI has decided to open an office at Mumbai,” he added. With the two
countries having various industries that match investment promotion goals,
including auto parts, software, chemicals, and pharmaceuticals, it is not
surprising that Mr Chandra, during his speech, chose to touch upon the fact
that industrial groups like the Birla Group have been highly successful in

Speaking about his experience
in Thailand, Mr Birla stated that his companies enjoy a leading position in
Thailand. Apart from highlighting a turnover of US$ 1.6 billion in Thailand,
accompanied by a strong export thrust, Mr Birla added that the BOI has been
very helpful, having played the role of a mentor. From 2007 through 2012, some
114 projects by Indian investors were approved and received promotional
incentives from the Thailand BOI with a total investment value of Baht 30,203

Apart from those by Aditya
Birla Group, large scale projects in Thailand by Indian businesses include
Apollo Tyres, N.T.S Steel Group, Polyplex, Indorama Holdings, Bharat Hotels,
and Tata Motors. Subsequently, large scale Thai companies that have invested in
India include ITD Cementation India, Charoen Pokphand Foods PLC, the Siam
Cement Group, Pranda Jewelry, Thai Summit Auto Part Industry and Pruksa Group.

Touching upon the growing
economic ties between the two nations, Mr Wongviwatchai said that Thai
investment in India is growing. “It grew significantly in 2012,” he said while
drawing attention to the fact that in his country automobiles and auto parts
are expected to record the most growth, followed by computers and computer
parts. With global automakers like Toyota and Honda investing heavily in
Thailand, it is not surprising that autos and auto parts make a significant
chunk of Thailand’s economy followed by others including electronic parts and
chip makers, oil and gas equipment and parts, software, games and animation,
gems and jewellery, bio-technology and health care. Indian by birth, and a Thai
by choice, Mr Satish Sehgal, President, Thai-India Business Association,
expressed that there is a partial FTA between the two countries,

and has resulted in a trade
of one billion. A total FTA is expected by the end of this year, he added, and
would elevate the trade between the two countries to two billion in the next
five years. Apart from helping Thai businesses invest in India’s auto parts
industry, agricultural industry, electrical appliances and electronics,
construction, energy, real estate and hotels, the BOI, Thailand, office at
Mumbai is also expected to influence the setting up of BOI offices in 10 other
countries including China, USA, Japan, South Korea, France, Australia, Sweden,
Germany and Taiwan. 

Leave a Reply

Your email address will not be published.