"Both the countries need to make efforts to enhance the level of trade, which fell short of the target of $2 billion by almost $1.2 billion. This shows that there is a lot of untapped scope for increasing the bilateral trade ties," board of trade of Thailand president, Vichen Tejapaibul said at the joint India-Thailand business council meeting organised by Federation of Indian Chambers of Commerce and Industry of India (Ficci) in New delhi on Monday.

Ficci is taking up major initiatives to augment the relations between the two countries under the patronage of BIMSTEC. It is undertaking various programmes towards augmenting the trade initiatives. There are certain complimentary between the industries of the two countries and apart from merchandise trade, Thailand and India can promote tourism between the two countries. Thailand is one of the most successful countries in promoting tourism and India has much more diverse tourism projects to offer. The two countries can promote each other's destinations for outsourcing to third countries.

Bangladesh, India, Malaysia, Sri Lanka and Thai economic grouping (BIMSTEC) is going to play a vital role in the near furture not only between India and Thailand, but also in the ASEAN region. This would enhance the level of trade of India with these countries.

The Exim Bank of India has recently extended a $10 million line of credit to Exim Bank of Thailand for facilitating export of manufacturing and engineering goods, which could be utilised to enhance exports, Ficci said.

Besides, the Asian countries investment programme of Exim Bank of India could be used to finance new initiatives between India and Thailand, it said.

Imports from Thailand included textile yarn, fabrics, madeups, artificial resins, plastic material, machinery and electronic goods touching $321.19 million in 1999-2000.

The balance of trade was in favour of India at $457.05 million of exports during the same period comprising gems and jewellery, castor oil, marine products, drugs and pharmaceuticals, chemicals and machinery.