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India’s $8.5 Trillion-Ambition: Ambassador Urges Thailand to Join the Explosive Economic Boom!

Indian Ambassador Nagesh Singh has urged Thailand and India to strengthen their economic alliance and bilateral ties, as India continues to lead the international economic landscape. Despite Thailand currently ranking as ASEAN’s second-largest economy, it is only India’s fifth-largest trading partner within the bloc. To enhance this relationship, more trade and investment between the two countries is required, particularly in thriving areas such as automobiles, food products and electronic goods, Mr. Singh stated.

Recognizing India’s booming market, the ambassador encouraged Thailand to increase their investments in India. For instance, Apple’s smartphone investment in India generated $6 billion in revenue despite holding a relatively small market share. The close geographical proximity between India and Thailand, located on either side of the Bay of Bengal, presents ample opportunities for greater connectivity and financial cooperation.

As India currently accounts for 40% of global digital payments, Mr. Singh suggested that a collaboration between India’s United Payment Interface (UPI) and Thailand’s PromptPay could dramatically enhance the number of transactions available. By working with one another, Thailand can enjoy support from the two largest global economies – India and China.

In the ambassador’s opening remarks at the “Golden Decade For India” forum, he detailed the country’s impressive economic performance. India has been among the fastest-growing economies in the world over the last 20 years, overtaking the UK to become the fifth-largest economy worldwide in 2021. With its GDP expected to double from $3.4 trillion to $8.5 trillion within the next decade, India will soon be the world’s third-largest economy. Responsible for 20% of total global GDP growth during this time, it will add over $400 billion to its GDP annually, only surpassed by the United States and China.

The World Economic Forum has predicted that India will become the third-largest consumer market behind the US and China, with its consumer spending set to grow from $1.5 trillion to nearly $6 trillion by 2030. In the same year, India will also become the third-largest stock market, boasting a market capitalization of around $11 trillion. Furthermore, the country’s workforce is predicted to expand by 100 million by 2030, indicating that 25% of the global workforce increase over the next decade will originate from India, according to Mr. Singh.

During a panel discussion, Anhul Chauhan, Global CEO of Minor Food, noted the increasing consuming class from India that is eager to spend. To successfully invest in India’s vast market, businesses are required to prioritize volume in sales. This is bolstered by the country’s low manufacturing costs and the potential for high product prices in the Indian market.

India has been likened to a “slow-moving elephant” by Ashish Shanker, CEO of Motilal Oswal Private Wealth. He commented that over the past 5-6 years, the Indian government has worked diligently to improve regulations and clean up various sectors, which will have a highly positive impact on future investment in the country.

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