Prime Minister Prayut Chan-o-cha has given his assurance that Thai investors see India as an attractive market because of its size and policy on foreign investment, during a meeting with Indian Foreign Minister Sushma Swaraj.
Deputy government spokesman Werachon Sukhondhapatipak said since both sides agree to deepen cooperation on trade, the prime minister has affirmed that the Indian market has great potential.
He said the Indian government's policy of promoting and facilitating foreign investment is one of the pull factors for Thai firms when considering whether to invest in the South Asian country, which offers a large and diverse market.
Gen Prayut has reiterated the Thai government's commitment to developing relations between Southeast Asian and South Asian nations through strengthening Thai-Indian ties, he said.
Both sides also see the potential of the two countries in bolstering tourism cooperation. Tourist arrivals from India are estimated to exceed one million a year, while India has become a popular destination for Thai Buddhists.
According to the deputy spokesman, cultural ties are expected to mark a new high when they prepare to celebrate the 70th anniversary of the establishment of diplomatic relations next year.
Maj Gen Werachon said Thai-Indian relations have continued to strengthen this year following an official visit to Thailand in early February by Indian Vice-President Hamid Ansari. It was closely followed by Deputy Prime Minister Prawit Wongsuwon's visit to India in March.
On the second day of his three-day visit to India, Gen Prayut and his wife attended an official welcoming ceremony at Rashtrapati Bhavan and a wreath-laying ceremony at the Mahatma Gandhi memorial.
The prime minister also met senior executives from over 50 Thai firms that have invested in India to inquire about problems and obstacles that may hinder plans to promote Thai investment and trade in the country.
The meeting was also attended by Deputy Prime Minister Somkid Jatusripitak and deputy commerce minister Suvit Maesincee. The businesses at the meeting included CFP (India), Delta Electronics, Pruksa Real Estate Plc, Sri Thai Superware Plc, Italian Thai Development Plc, Krung Thai Bank, Thai Summit Autopart, and Bangkok Airways.
According to Maj Gen Werachon, Thai investors told the premier that business opportunities were plentiful in India, which has one of the world's fastest growing economies, and that Indian consumers have a keen preference for Thai products, especially furniture, food, home supplies and products for children.
However, they said they face a number of challenges ranging from copyright violations and law enforcement to a lengthy process when importing goods, especially food products.
Maj Gen Werachon said the prime minister has acknowledged the problems and concerns and pledged to raise them for discussion during meetings with Indian government officials.
Gen Prayut also congratulated several Thai firms for their success in India such as CPF (India) which plans to increase its Five Star Chicken outlets in India from 300 to 500 this year.