Indo-Thai Trade Surge: Charting New Horizons at the 2025 ASEAN-India Summit

Indo-Thai Trade Surge: Charting New Horizons at the 2025 ASEAN-India Summit

Bangkok/New Delhi, August 5, 2025 — India and Thailand are poised to elevate their economic partnership to new heights, with bilateral trade projected to surpass $20 billion by 2026. As both nations prepare for the ASEAN-India Summit in late 2025, their shared vision for enhanced connectivity, sustainable trade, and cultural collaboration is set to redefine their strategic alliance. The summit, expected to be held in New Delhi in November 2025, will be a pivotal moment to unveil initiatives that strengthen the Indo-Thai economic corridor and deepen ASEAN-India integration.

A Flourishing Economic Partnership

India and Thailand have witnessed robust trade growth, with bilateral trade reaching $18.2 billion in 2024, driven by Thailand’s exports of electronics, automotive parts, and agricultural products, and India’s shipments of pharmaceuticals, textiles, and gems. The ASEAN-India Trade in Goods Agreement (AITIGA), implemented in 2010, has been instrumental in this surge, but both nations are now pushing for a modernized framework to address trade imbalances and unlock new opportunities. A key focus is the ongoing AITIGA review, slated for completion by the 2025 summit, which aims to streamline tariffs and boost market access for small and medium enterprises (SMEs).

Thailand’s investment in India’s manufacturing sector has grown significantly, with Thai companies like Charoen Pokphand Group expanding into India’s food processing and agribusiness sectors. Meanwhile, Indian firms are eyeing Thailand’s digital economy, with investments in fintech and e-commerce platforms gaining traction. The India-Myanmar-Thailand Trilateral Highway, a 1,360-km connectivity project, is nearing completion and will facilitate seamless trade flows by 2026, linking India’s Northeast to Thailand’s markets via Myanmar.

Cultural and tourism ties are also fueling economic synergy. The ASEAN-India Year of Tourism 2025, announced at the 21st ASEAN-India Summit, will see India allocate $5 million for joint activities, including cultural festivals and tourism campaigns promoting Thai destinations like Chiang Mai and Indian heritage sites like Bodh Gaya. These initiatives aim to double tourist exchanges to 2 million annually by 2027.

The ASEAN-India Summit: A Catalyst for Collaboration

The upcoming ASEAN-India Summit, set for November 2025 in New Delhi, will be a landmark event under the theme “Shared Prosperity, Connected Futures.” Building on the 10-point plan unveiled by Prime Minister Narendra Modi at the 2024 summit, the 2025 agenda will prioritize trade diversification, digital connectivity, and green initiatives. Key highlights include:

AITIGA Review Completion: The summit will finalize the AITIGA review, introducing measures to reduce non-tariff barriers and enhance trade in services, particularly in IT and healthcare. This will benefit Thai SMEs exporting to India and Indian tech firms expanding in Thailand.
Digital and Green Innovation: India and Thailand will launch the ASEAN-India Digital Trade Corridor, a platform to foster cross-border e-commerce and fintech collaborations. Additionally, a joint workshop on sustainable agriculture will explore Thailand’s expertise in organic farming and India’s advancements in agritech.
Trilateral Highway and Beyond: The summit will announce progress on extending the India-Myanmar-Thailand Trilateral Highway to Laos, Cambodia, and Vietnam, creating a regional trade artery. India’s $1 billion line of credit for connectivity projects will support this expansion.
Cultural and Startup Synergies: The ASEAN-India Startup Festival, a flagship event at the summit, will connect 300 startups from India and ASEAN nations, including Thailand, to pitch innovative solutions in AI, blockchain, and renewable energy. A new ASEAN-India Cultural Exchange Program will also promote Buddhist heritage tourism, leveraging shared cultural ties.

Challenges and Opportunities

Despite the optimism, challenges remain. Trade imbalances favor Thailand, with India facing a $5 billion deficit in 2024. The AITIGA review aims to address this by easing export regulations for Indian pharmaceuticals and textiles. Infrastructure delays in the Trilateral Highway project, particularly in Myanmar, pose logistical hurdles, though both nations are committed to resolving these by 2026.

The summit offers a platform to tackle these issues while capitalizing on opportunities. Thailand’s growing demand for India’s generic medicines aligns with India’s push to become a global healthcare hub. Conversely, India’s burgeoning electric vehicle market presents opportunities for Thai auto component manufacturers. Joint ventures in renewable energy, such as solar and bioenergy projects, are also on the horizon, supported by India’s Mission LiFE and Thailand’s Bio-Circular-Green Economy model.

A Vision for the Future

As India and Thailand gear up for the 2025 ASEAN-India Summit, their partnership is poised to set a benchmark for regional cooperation. The summit’s outcomes will not only boost bilateral trade but also strengthen ASEAN-India ties, fostering a resilient economic ecosystem. With shared goals of sustainability, innovation, and cultural connectivity, the Indo-Thai alliance is ready to shape a prosperous future for both nations.