A STUDY ON STATUS AND PROSPECTS OF INDIA –THAILAND FREE TRADE AGREEMENT - WITH SPECIFIC REFERENCE TO TEXTILES

Abstract

Abstract ; India and Thailand signed a free trade agreement in 2004 with an early harvest scheme of 82 items which supported MNC companies who manufacture TV, automobile and refrigerator and does not support that much other Industries. In this article, we did an analysis on this FTA’s current status as well as its effect on Textile trade.  Current status of this FTA combined with INDIA- ASEAN FTA (where Thailand is also a part now) is explored further. Thailand from this year extends zero duty on 67% of items and India will reduce to zero duty level on 64% of item from next year. Both countries agreed to reduce for another 10% items from 2016 onwards to zero level. WRT analysis on textile trade of Thailand, top most one with 24.15% is cotton, followed by man-made filament at 16.59% and coated fabrics at 10.81%. China was the world top supplier not only for these 3 items but for all 14 HS code of textiles. With necessary awareness creation on this FTA and with a better product mix, India can take over part of Thailand market, which is currently being serviced by China. Let us say from current level of 3% share, with an effort, India should target to bring this up to 10% level.