Over the last few years Thai-India economic and commercial relations have rapidly expanded with bilateral trade increasing from US$1.05 billion in 2001 to US$4.7 billion in 2007. The two countries are identifying different mechanisms to further expand the scope of economic cooperation either through the bilateral FTA or enhanced cooperation in the tourism sector. In this context, the Indian Diaspora in Thailand has emerged as an important factor in further strengthening the bilateral economic relations.

According to the L M Singhvi Committee report on Indian Diaspora, the total population of Indians in Thailand stands at 85,000, which is 0.07 per cent of total Thai population. In this, the number of persons of Indian origin (PIOs) is 70,000, while there are 15,000 non-resident Indians (NRIs). Historically, the Indian migration to Thailand has largely been voluntary and in search of economic opportunities unlike their Malaysian counterparts who were sent by the British government as plantation labour. The Indian population is largely concentrated in cities, mainly in Bangkok, Chiang Mai and Chiang Rai. Their recent migration has been mainly in the field of high-skilled jobs, especially in the information technology sector.

Among Indian groups, Sikhs are the most prosperous community in Thailand. They are involved primarily in the textile sector, while the Tamil Muslims and the Bohras are engaged in trading in precious stones and high-value technology goods respectively. There are many Indians in the service sector in Bangkok, especially those who hail from Gorakhpur in Uttar Pradesh. However, the number of Indians working in information technology and other high-skilled jobs is increasing.

Thai Indians are a small but important economic community in Thailand. The Director of the Board of Trade of Thailand, Satish Sahgal, is of Indian origin and the fact that he occupies such an important post is clear evidence of the importance of Thai Indians in the national business and economy of Thailand. Their contribution to the national economy has come from their involvement in four main sectors. First, Thai Indians are involved in the Thai tourism sector. There are more than thirty Indian restaurants in Bangkok which offer a multiplicity of choice in cuisines to tourists visiting Thailand. Second, they provide a kind of stable retail base, especially in the textile sector. Third, they contribute to the strengthening of the service sector by providing much needed high-skilled labour. These people mostly work in multinationals in Bangkok and other cities. In this way they also contribute to the growth of Thailand's export sector. Fourth, Indians in Thailand have helped in the country's industrial development by setting up of big-ticket projects. Birla Industries established their base in Thailand some 32 years ago, Indo-Rama also entered Thailand some 12 years ago. Apart from these direct contributions Thai Indians also indirectly help in human resource development. There are so many schools run by Indians like the Mahatma Gandhi Memorial School in Sukothai, Nehru Memorial School in Chiang Mai and the Hindu Samaj School in Bangkok. Their main support comes in the form of scholarships, equipment, furniture, uniforms and so on.

Thai Indians are contributing to the strengthening of India-Thailand bilateral relations through various means. First, in 2007, the Northeastern Development Finance Corporation (NEDFC), India, signed a MoU with the India-Thai Business Forum headed by Satish Sehgal and the Indo- Rama Thai Company headed by Vinod Gupta. This MoU aims at bringing India's Northeast region closer to Thailand by increasing the direct trade between the two regions. Sehgal was instrumental in the signing of this MoU. Second, it is estimated that roughly more than 25,000 students from Thailand travel to India for educational purposes. Here it must be underlined that Thai Indians send their children to India for education and through them the local Thais have also come to know the standards of education in India increasing the flow of students from Thailand to India. This not only helps in strengthening India's educational sector but also brings foreign currency to Indian economy. Third, with the greater movement of people from both sides, it helps in a better mutual understanding.

It was indicated by the Singhvi Committee that Thai Indians can play a possible role in the BIMSTEC and Mekong Ganga Cooperation. According to this report, Thai Indians want increased interaction between the Thai Board of Investment (BOI) and Indian chambers of commerce like FICCI to promote understanding of markets. By addressing some of their concerns, like increased air connectivity to Northeast India from Thailand, the Indian establishment can help Thai Indians in exploring Indian markets and in expanding the area of bilateral economic cooperation. Thai Indians have great potential to act as catalysts for strengthening India-Thailand relations through their economic endeavours and this potential must be tapped.