Indian, Thai private sectors to seek closer ties

Friday, 10 October 2003, 19:30 IST
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BANGKOK: The Thai and Indian private sectors have pledged to work more closely with one another in the areas of food and information and communications technology, the Bangkok Post reported Friday. The decision was taken to tap the benefits of the bilateral free trade area agreement reached between the two countries here Thursday. The Federation of Indian Chambers of Commerce and Industry (FICCI) and Federation of Thai Industries (FTI) signed a memorandum of understanding to do a joint study on developing a framework under the free trade pact. Under liberalised trade, potential exists to make two-way trade between India and Thailand jump to $5 billion within five years from the current $1.2 billion. The associations expect that there will be a dramatic upturn in investment flows between the two countries. The Post said the food sector will be among the first priorities for cooperation. India is looking to tap Thailand's strong food processing and fishery technologies, while Thailand stands to benefit from India's advanced pharmaceutical industries and natural resources. Thai officials pointed out while India is the second largest fruit and vegetable producer in the world after China, only two percent of its crop output was processed compared to up to 60 percent in Thailand. That is because the food preservation technology in Thailand is more advanced. In the fishery sector, the 7,500-km Indian coastline offers tremendous fish resources for Thailand's strong fishery technology. Thai businessmen also feel that India's strength in software could realise synergies with Thailand's hardware producers in terms of electronic facilities in this country. India's software production is worth $17 billion, of which $10 billion is exported.
Source: IANS
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