Bangkok Bank taps into Indian market cementing its status as a leading regional bank ready to support Thai entrepreneurs to achieve sustainable growth
November 05, 2024
Bangkok Bank pinpoints India as a new potential market to invest in, advising Thai business people to explore opportunities to expand their market. The Bank is ready to be a "trusted partner" to provide information and loans to support customers to effectively invest in India, pointing out that consumer goods are still in high demand while investing in manufacturing bases in India is a growing trend.
Bangkok Bank President Chartsiri Sophonpanich said India is the fifth largest country in the world and has an economic growth rate of about 6-7% per year. In the next 5-10 years there is an opportunity for Thai business people to increase trade and investment in India. Bangkok Bank is ready to support Thai entrepreneurs who want to expand their business to India by providing business consultation, risk management advice and financial support. We are committed to being a 'trusted partner' that helps Thai businesses adapt and grow strongly and sustainably in this market that has potential.
Bangkok Bank as a "leading regional bank" is ready to provide investment advice with information covering all aspects of the country, including social, cultural norms, and complex regulations, as well as providing financial support related to international trade, such as financing for imports and exports, risk management advice including foreign exchange risk to help Thai businesses invest confidently and expand their market reach smoothly. In addition, the Bank is ready to form partnerships with local banks and financial institutions in India which will help Thai businesses to understand and adapt to the complex and ever-changing financial landscape.
"Currently, the Bank has a large number of Indian customers and Thai customers of Indian descent, both from branches in Thailand and overseas. With the continuous expansion of the Indian economy, the Bank's customers, especially large businesses in a range of industries, have invested in India and many more are expected to invest in the future. The Bank is also in the process of exploring opportunities to open branches in India to meet the needs of customers and investors. At the same time, the Bank is ready to provide information and advice that enables investors to make decisions and make informed investments in the Indian market, " Mr. Chartsiri said
H.E. Mr. Nagesh Singh, the Indian Ambassador to the Kingdom of Thailand, said that investors' understanding of India may still not be accurate as they do not truly know India yet, and this prevents them from investing. However, India has continuous economic growth of an average of 8% per year, accounting for 17% of global GDP, the country is expected to be one of the world's top five countries driving the global economy. India is becoming a rising star country in the region and has access to resources, technology, available labor and low-costs. With the largest population in the world, it is expected that by 2027 India will become the third largest consumer market in the world, making it attractive for investment.
"Thailand and India have had a long-standing relationship with cooperation at both the ASEAN level and as partners in various bilateral frameworks. However, Thai investment in India remains lower than expected. Currently, Thailand's investment in India is ranked number 5th, following Singapore, Indonesia, Malaysia, and Vietnam," Mr. Nagesh said.
H.E. Ms. Pattarat Hongtong, Ambassador of Thailand to India, said that trust and confidence are key to doing business in India, and newcomers must be open-minded to familiarize themselves with the Indian market as India is a rising star for investment opportunities, particularly for Thai entrepreneurs. There are several important supporting factors, including transportation connectivity with 328 flights per week, land routes via the India-Thailand-Myanmar trilateral highway, and sea transport facilitated by cooperation between Ranong port and Indian ports. Consumer goods and supply chain products remain in high demand and present significant opportunities in the Indian market as India has a high consumption rate due to having a population of over 1.4 billion. Thai exports that continue to be in demand include food and beverages, which have an export value to India exceeding 1 billion baht, fresh and processed fruit valued which has an export value of over 607 million baht, and home décor and furniture, which are becoming popular due to the changing lifestyle of Indians. Additionally, automotive parts are in demand to support India's position as the world's largest automotive manufacturing hub.
India is also encouraging more entrepreneurs to invest in the country by establishing special economic zones in various cities to support a wide range of industries. The industries that the Indian government prioritizes for support include agriculture and food processing, services, hospitality, furniture manufacturing, and automotive parts. Currently, only about 45 Thai companies have invested in India.
"Products and investments from Thailand are still in high demand in India and there are many market expansion opportunities. For example, New Delhi has only one Thai restaurant despite having a population of 30-40 million people. Thai entrepreneurs looking to invest in India should start by exporting products to familiarize themselves with the market. The India market can be complex because of a mix of national and local regulations, but if businesses are able navigate these challenges, India offers long-term sustainability and growth opportunities,” Ms. Pattarat said.
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