India-Thailand trade talks focus on market access, Asean trade agreement review

India and Thailand on Wednesday discussed ways to boost bilateral trade and investment, deepen business-to-business linkages and advance the review of the Asean-India Trade in Goods Agreement (Aitiga), as the both sides sought greater market access for businesses amid India’s widening trade deficit with Thailand.

Commerce and industry minister Piyush Goyal met Thailand’s deputy prime minister and commerce minister Suphajee Suthumpun at Vanijya Bhawan in New Delhi, with the discussions focused on strengthening the economic partnership between the two countries.

The two sides exchanged views on enhancing trade and investment through greater collaboration and co-creating solutions aimed at promoting balanced and sustainable growth in bilateral trade, the commerce ministry said in a statement.

On Aitiga, India and Thailand discussed the progress of the review and emphasized the need for deeper bilateral engagement through the India-Thailand Joint Trade Committee (JTC) in a time-bound manner. Both sides stressed the importance of a balanced and mutually beneficial framework that could support greater market access and create opportunities for businesses in the two countries.

Widening deficit

Bilateral trade between India and Thailand reached a record $20.93 billion in calendar year 2025, according to data from India’s department of commerce. Indian exports to Thailand stood at $5.06 billion, while imports were $15.87 billion, leaving India with a trade deficit of about $10.81 billion.

The trade deficit widened from $6.75 billion in 2024, when India’s exports were $4.88 billion and imports were $11.63 billion. Thailand is India’s third-largest trading partner in the Association of Southeast Asian Nations (Asean), after Singapore and Indonesia.

India’s major exports to Thailand include machinery, engines and parts; pearls and precious stones; marine products such as fish and squid; vehicles and auto components; organic chemicals; aluminium; pharmaceuticals and spices. Major imports from Thailand include palm oil and other vegetable oils; plastics and plastic raw materials; organic chemicals; machinery; electrical and electronic equipment; precious metals and jewellery-related items; and rubber products.

The widening trade gap has been driven largely by an increase in Thai exports to India, including in categories such as precious stones and metals and oils. The two countries, however, continue to work through regional and bilateral mechanisms to expand trade and investment and address market-access concerns. Existing bilateral mechanisms have focused on facilitating trade, addressing market-access issues and strengthening links with regional and global supply chains.

The ministers discussed strengthening trade promotion activities in both countries to foster business networks, facilitate greater business-to-business engagement and expand market opportunities for enterprises. They also addressed a delegation of Thai businesses operating across sectors including space technologies, cold-chain logistics, food processing and innovation, health and wellness, and trade and investment promotion.

The meeting reaffirmed the two countries’ commitment to deepening economic engagement, strengthening business partnerships and building a balanced and mutually beneficial trade and investment relationship, India’s commerce ministry said.