Bangkok Bank (BBL) is encouraging Thai businesses to expand into India to reduce their reliance on the US market amid rising geopolitical risk and escalating global trade tensions.
Speaking at the "Unlock India: Opening the Door to India" seminar hosted by BBL on Wednesday, BBL president Chartsiri Sophonpanich said India is strategically important to Thailand as a consumer market, an investment destination, and an increasingly vital link in global supply chains.
Drawing on its experience in supporting Thai businesses expanding overseas, the bank understands that entering a new market, particularly one as large and complex as India, requires more than capital, he said.
BBL is ready to provide customers with end-to-end services covering both financial and non-financial support to help them expand into new markets, said Mr Chartsiri.
Kobsak Pootrakool, senior executive vice-president at BBL, said India is emerging as a great opportunity for Thai businesses amid heightened geopolitical risk and global trade tensions. Thailand's reliance on the US market remains highly uncertain.
"India holds a geopolitical advantage, as many countries remain cautious towards China, creating opportunities for others such as Thailand to expand their business presence," he said.
Exports to the US account for 20% of the country's total export volume. That proportion should decline to 15% in the medium term and 10% over the longer term, said Mr Kobsak.
With a population of 1.4 billion people, making it the world's most populous country, India also offers significant purchasing power, he noted.
India offers a diverse economic structure, with varying levels of development across its states creating broad opportunities for a wide range of Thai industries such as food, tourism, logistics and automotive, where Thailand has established strengths, said Mr Kobsak.
"One opportunity with potential is the joint development of a 'Double Detroit' model in the automotive industry, sharing production and export roles between the two countries," he said.
In tourism, around 2.5 million Indian visitors travel to Thailand each year, making it their top destination, ahead of Dubai.
However, 90 million Indians hold passports, leaving substantial room for growth, potentially rising to 4-6 million visitors in the future, said Mr Kobsak.
India's economy is accelerating rapidly, from growth rates of 3-4% in the past to as high as 10% annually in some regions. The economy is on track to become one of the world's largest after the US and China, he said.
