Global Country Report on International Relationship of the Thailnad with India
Presented By:Rushabh Bhadiyadra Jignesh Jain Tapan Bhatt Vivek Joshi Dhruv Desai Nitin Jaiswal
About Thailand
Thailand is located in the center of peninsular Southeast Asia It is formally known as Kingdom of Thailand Bangkok is its capital The traditional founding date is 1238. But it was never colonized. Its literacy rate is 92.6% The major Thai industries are based on Crops and include Rubber products, Textile products and Food, Drink, Tobacco process & Electronics The Thai language is its main language. Countrys total population now is 61.5 million Climatically it is a tropical country, Thailand has three distinct seasons.
Indo-Thai Relations
The links between India and Thailand can be traced back to almost 2,000 years In 1996 Thailand initiated the Look West Policy aimed at exploring new markets, sources of energy and new investments flows
Look West policy is the best compliment of the Indias look East policy.
Thailand and India also have a strong relationship of cooperation in the East Asia Summit (EAS) MoU on Cooperation in Information Technology (2001) Framework Agreement on Thai-Indian FTA (2003) Agreement on Tourism Cooperation (2003) MoU on Thai-Indian Educational Cooperation (2005) MoU on Air Services between India and Thailand (2006)
Relationship of Thai-Indo Sector
In 2006, around 4,59,795 Indians travelled to Thailand. The Indian people can very easily relate to the Thai culture and traditions as most of it derived from India thousands of years ago The number of Thai tourists to India is gradually increasing. This is due to the recent Indian open sky policy where Thai Airways was able to increase its flights to India
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Agreement on Trade (1968) Agreement on Cultural Cooperation (1977) Double Taxation Avoidance Agreement (1985) Joint Trade Committee (1989)
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MoU on Cooperation in Information Technology (2001) Framework Agreement on Thai-Indian FTA (2003) Agreement on Tourism Cooperation (2003)
MoU on Thai-Indian Educational Cooperation (2005)
Economy of Thailand
Thai exports - mostly machinery and electronic components, agricultural commodities, and Jewellery that contributes to more than half of GDP. The economy probably continued to experience high growth into 2011. Gross Domestic Product (GDP): Industry constituted 44.5 percent of GDP Services with a 44.1 percent share. Agriculture accounted for the remaining 11.4 percent.
Sectors
The services sector is Thailand's fastest growing sector, largely fueled by the boom in tourism. Thailands financial services are provided by 34 commercial banks, of which 13 are domestic and 21 are foreign.
Cont
Automobiles and Automotive parts (11%) Financial Services (9%) Electric appliances and components (8%) Tourism(6%) Cement Auto Manufacturing Heavy and light Industries, Appliances, Computer sand parts, Furniture, Plastics , Textiles and Garments Agricultural processing, Beverages, Tobacco
Thailand Computer Industry
Computer Hardware Export Software Producing & Importing Services Producing & Importing
only the hardware segment of the industry is involved in export The largest constituent of Thailands computer and parts industry is the manufacturing of hard disk drives (HDD) and related components, accounting for over 68 percent of computer and parts production value
Hard Disk
SE Asia
Singapore Thailand Malaysia
Philippines
Thailand is one of the worlds largest HDD exporters and manufacturers
Hard disk
SE Asia Singapore Thailand Malaysia
Philippines
The manufacturing of hard disk drives (HDD) and related components, accounting for over 68 percent of computer and parts production value. The hard disk drive industry in Thailand began in 1983 with Seagates investment in head-stack assembly Thailand has become one of the worlds important production sites for hard disk drives and related components
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The hard disk drive industry in Thailand revolves around finished assembly and component manufacturing by three companies:
Seagate, Western Digital and Fujitsu
Success of HDD in Thailand
Reasons : low cost, literate, high quality labor a national infrastructure that facilitates the export market. proximity to sea and air routes into Asia and other global markets, as well as sourcing centers.
Comparison of Thailand-Indian (GUJ.) companies
Gujarat is fast emerging as ideal destination for IT some of the reasons are as under:Investor friendly Policy Fastest growing hub for peripheral Industries of technology. Land bank availability for industrial use Robust physical, social and industrial infrastructure Pro active governance Lowest cost of living, real estate & lower cost of human resources One of the lowest star-up and operational costs in India 24X7 uninterrupted power supply 10 IT/ITES SEZs and growing
POLICY SUPPORT THROUGH SUBSTANTIAL INCENTIVES
Special incentives for mega projects creating employment for more than 1000 persons in case of an technology unit. A waiver of no objection certificate from Gujarat Pollution Control Board for IT/ITeS units engaged in the provisions and production of IT services and IT software Labor Laws are simplified. Permission is granted to have 24X7 operations and for women to work in night shifts. Strengthening of Cyber crime detection cell for security purposes. A property registration tax exemption up to 50% for IT/ITeS units in the IT parks. All new IT units are exempt from the payment of electricity duty for a period of five years and are also exempt from power cuts.
POLICIES AND NORMS OF THAILAND FOR HARD DISK MANUFACTURING INDUSTRY FOR IMPORT/EXPORT Overall national development policies Investment promotion policies Foreign direct investment
POLICIES AND NORMS OF INDIA FOR HARD DISK MANUFACTURING INDUSTRY FOR IMPORT/EXPORT Foreign Investment Policy
CONCLUSIONS AND SUGGESTIONS
Thailand has been successful in building up an internationally competitive electronics industry and in integrating itself into the global economy.
Government policies have always played a vital role in building up a successful electronics industry.
Thai Government now began to emphasize developing local support industry and building up domestic innovative capacities.
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