Thailand’s Strategic Geopolitical Shifts Create New Economic Opportunities For India: ORF Report

New Delhi, May 7 (KNN) A report by the Observer Research Foundation (ORF) has highlighted emerging strategic and economic opportunities for India amid changing geopolitical dynamics in Thailand, positioning New Delhi as a potential ‘third axis’ alongside the United States and China.

The special report, titled ‘India and Thailand: The Compelling Case for a Deeper Compact’ and authored by Jaibal Naduvath, noted that growing uncertainty around Thailand’s traditional partnerships is prompting Bangkok to diversify its strategic engagements, reported ANI.

Shifting Balance Among Major Powers

According to the report, the United States—long regarded as Thailand’s primary partner—is increasingly seen as unpredictable, while China’s expanding presence has raised concerns over its maritime posture and geo-economic practices.

Against this backdrop, India is emerging as a relatively neutral and trusted partner, aided by its strategic autonomy and absence of historical baggage.

Policy Convergence Driving Ties

The think tank pointed to growing alignment between India’s ‘Act East’ policy and Thailand’s ‘Act West’ approach, alongside the elevation of bilateral ties to a strategic partnership. It also underscored deep historical and cultural linkages spanning over two millennia.

Focus on Key Growth Sectors

The report identified five priority sectors for strengthening bilateral cooperation: semiconductors, artificial intelligence (AI), automotives, MSMEs, and tourism.

In semiconductors, it highlighted complementarities between Thailand’s strengths in assembly and testing and India’s capabilities in chip design and intellectual property, suggesting scope for a co-development model.

On AI, the report noted that Thailand’s need for trusted partners to build sovereign capabilities could align with India’s large talent pool and advances in AI infrastructure.

Scope for Trilateral and MSME Collaboration

In the automotive sector, the report proposed a potential India–Thailand–Japan trilateral framework to leverage shared manufacturing ecosystems and diversify risks.

For MSMEs, it suggested integrating Indian firms into global value chains through collaboration with Thai enterprises, combining India’s strengths in design and software with Thailand’s expertise in precision manufacturing and testing.

Tourism and Infrastructure Gaps

The report also flagged underdeveloped tourism linkages, particularly in Buddhist circuits. Despite strong cultural ties, tourist flows from Thailand to India remain limited, pointing to gaps in infrastructure, connectivity and service quality.

Strategic Outlook

The report concluded that closer India–Thailand cooperation could help both countries achieve their long-term economic and strategic goals.

"For India to advance its Viksit Bharat ambitions, it needs reliable partners with aligned interests. For Thailand to emerge as a global value creator, it needs partnerships that combine scale with strategic autonomy. India and Thailand offer each other this balance," the report emphasised, as quoted by ANI.

(KNN Bureau)