India and Thailand Strengthen Strategic Partnership with Focus on UPI Payments, Trade and Investment

India and Thailand have reaffirmed their commitment to strengthening bilateral economic and financial cooperation, with particular emphasis on digital payments, financial connectivity, investment opportunities and emerging financial technologies.

Union Finance and Corporate Affairs Minister Nirmala Sitharaman held bilateral discussions with Thailand’s Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas in Bangkok on October 16, 2026, on the sidelines of the annual meetings of the International Monetary Fund (IMF) and World Bank Group.

According to the reported account of the Ministry of Finance, the discussions focused on expanding trade and investment, strengthening financial-sector collaboration and advancing the proposed linkage between India’s Unified Payments Interface (UPI) and Thailand’s PromptPay payment system.

The meeting also explored opportunities for cooperation in cross-border financial settlements, local currency transactions, fintech innovation, artificial intelligence and quantum technologies.

The discussions build on the India-Thailand Strategic Partnership established in April 2025, which provides a framework for expanding bilateral cooperation across economic development, connectivity, technology, defence and regional engagement.

India and Thailand Review Economic and Financial Cooperation

The bilateral meeting provided an opportunity for both finance ministers to review the economic relationship between India and Thailand and explore measures to strengthen financial and commercial engagement.

The discussions covered bilateral trade, investment flows, financial services, digital payments and emerging technological developments affecting the financial sector.

Both countries have been expanding economic cooperation through bilateral arrangements and regional mechanisms involving the Association of Southeast Asian Nations (ASEAN). Thailand occupies an important position in India’s engagement with Southeast Asia, particularly through the Act East Policy and the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC).

The October 16 meeting continued efforts to expand business relationships and improve financial connectivity between the two economies.

Greater cooperation between financial institutions can support trade financing, facilitate investment and create opportunities for businesses operating across both markets.

India and Thailand Discuss UPI-PromptPay Cross-Border Payment Linkage

One of the important subjects discussed during the meeting was the proposed integration of India’s Unified Payments Interface (UPI) with Thailand’s PromptPay instant payment system.

UPI, developed by the National Payments Corporation of India (NPCI), enables instant digital payments between participating bank accounts and payment applications. Thailand’s PromptPay system provides similar real-time payment services within the Thai financial ecosystem.

Linking the two platforms would allow participating users to make cross-border payments through interoperable digital payment infrastructure.

Such an arrangement could benefit Indian tourists visiting Thailand and Thai visitors travelling to India by providing a convenient alternative to conventional international payment methods.

Businesses operating between the two countries could also benefit from improved payment connectivity, particularly for eligible retail and commercial transactions.

The proposed linkage forms part of India’s wider efforts to expand international acceptance of UPI and strengthen cross-border digital payment cooperation with partner countries.

The discussions in Bangkok represent continued engagement towards establishing the payment connection, which would require coordination between the relevant financial institutions, payment system operators and regulatory authorities.

Rupee-Baht Settlement Mechanism Could Support Bilateral Trade

The two finance ministers also exchanged views on exploring local currency settlement mechanisms using the Indian rupee and Thai baht.

Local currency settlement arrangements enable eligible international trade transactions to be conducted directly in the currencies of the participating countries.

Such mechanisms can reduce reliance on third-country currencies for selected transactions and provide businesses with additional options for managing cross-border payments.

For Indian and Thai exporters, importers and financial institutions, a rupee-baht settlement framework could support greater flexibility in trade financing and payment processing.

The discussions reflect the growing importance of developing efficient financial arrangements that complement expanding commercial relationships.

India has been strengthening local currency settlement cooperation with several international partners as part of its wider efforts to improve financial connectivity and facilitate international trade.

Closer engagement between Indian and Thai financial authorities will support the examination of suitable mechanisms for bilateral currency settlement.

GIFT City Offers Investment Opportunities for Thai Financial Institutions

Finance Minister Nirmala Sitharaman highlighted the investment and business opportunities available through Gujarat International Finance Tec-City (GIFT City), India’s international financial services hub in Gandhinagar.

She encouraged Thai banks, financial institutions and fintech enterprises to explore the expanding financial ecosystem operating under the International Financial Services Centres Authority (IFSCA).

GIFT City provides a regulatory and institutional framework for international financial activities, including cross-border banking, trade finance, capital markets, treasury operations, fund management and financial technology development.

The financial centre also supports international insurance, aircraft leasing, ship leasing and wealth management activities.

India has been developing GIFT City as a competitive international financial hub capable of attracting global institutions and facilitating cross-border capital flows.

During a review meeting in May 2026, the Ministry of Finance reported that GIFT City hosted more than 1,150 entities across financial services, technology and associated business activities.

Banking assets at the international financial centre had exceeded $110 billion, while capital commitments under fund management activities had crossed $32 billion.

The growing ecosystem provides opportunities for Thai institutions seeking to expand their international financial operations and strengthen commercial engagement with India.

India and Thailand Explore Greater Two-Way Investment

The discussions also focused on encouraging investment flows between India and Thailand, particularly through institutional investment platforms and opportunities in emerging industries.

India highlighted opportunities for Thai investors to participate in infrastructure development and expanding sectors of the Indian economy.

Infrastructure investment remains an important component of India’s development strategy, covering transport networks, logistics, renewable energy, industrial facilities and urban infrastructure.

These sectors provide opportunities for international financial institutions, infrastructure investors and companies seeking long-term participation in India’s economic growth.

Both countries also discussed the importance of encouraging Indian investments in Thailand and strengthening business relationships between enterprises operating in the two markets.

Greater two-way investment can support industrial cooperation, technological partnerships, infrastructure development and regional supply-chain integration.

The discussions complement earlier engagements between the two countries, including the September 9, 2026, meeting between Union Commerce and Industry Minister Piyush Goyal and Thailand’s Deputy Prime Minister and Minister of Commerce Suphajee Suthumpun.

That meeting focused on increasing bilateral trade and investment, strengthening business-to-business connections and advancing the review of the ASEAN-India Trade in Goods Agreement.

Fintech Innovation and Tokenised Financial Assets Discussed

Financial technology cooperation emerged as another important area during the October 16 discussions.

Both ministers explored opportunities involving fintech innovation, cross-border settlement of tokenised financial assets and regulatory sandboxes.

Tokenisation involves representing financial assets or associated rights through digital tokens recorded on suitable technological infrastructure.

Financial institutions are examining such technologies for applications involving securities, settlement systems and other financial transactions.

Cross-border tokenised asset settlement could provide new approaches to financial transactions by integrating digital financial infrastructure with appropriate regulatory arrangements.

Regulatory sandboxes allow financial technology companies to test innovative products and services within controlled environments under regulatory supervision.

Cooperation in this area can facilitate exchanges between regulators, financial institutions and technology developers while supporting responsible experimentation with emerging financial systems.

India and Thailand’s discussions reflect their shared interest in strengthening financial innovation and developing technological capabilities relevant to modern financial markets.

Artificial Intelligence and Quantum Technologies Offer New Areas for Cooperation

The finance ministers also identified artificial intelligence and quantum technologies as potential areas for future collaboration.

Artificial intelligence is increasingly finding applications across banking, financial services, risk assessment, fraud detection, customer service and regulatory compliance.

Financial institutions are adopting AI-based systems to improve operational efficiency, analyse complex financial information and strengthen security measures.

Quantum technologies offer longer-term opportunities in secure communications, advanced computing and specialised sensing applications.

India has been developing indigenous capabilities in these fields through national research initiatives, institutional collaboration and private-sector innovation.

Thailand has also identified advanced technologies, including artificial intelligence and digital infrastructure, as important components of its economic development strategy.

Cooperation between the two countries could support research exchanges, technological partnerships and innovation within their respective financial sectors.

India-Thailand Strategic Partnership Strengthens Economic Engagement

India and Thailand elevated their bilateral relationship to a Strategic Partnership during Prime Minister Narendra Modi’s official visit to Bangkok in April 2025.

The partnership reflects the growing importance of cooperation between the two countries across trade, investment, defence, maritime security, digital connectivity and cultural exchanges.

Thailand remains an important partner in India’s Act East Policy, which promotes closer engagement with Southeast Asian countries through economic, diplomatic and strategic cooperation.

Both countries also participate in ASEAN-led mechanisms and BIMSTEC, providing additional platforms for strengthening regional connectivity and economic integration.

Their economic relationship benefits from geographical proximity, established commercial links and expanding cooperation between businesses and financial institutions.

The October 16 finance ministers’ meeting adds momentum to this partnership by concentrating on financial connectivity, investment opportunities and technologies capable of supporting deeper economic integration.

India and Luxembourg Discuss Sustainable Finance and Banking Cooperation

During her visit to Bangkok, Finance Minister Nirmala Sitharaman also held bilateral discussions with Luxembourg’s Finance Minister Gilles Roth.

The meeting focused on strengthening cooperation between the financial sectors of India and Luxembourg, particularly in banking, sustainable finance and investment-related activities.

Luxembourg is an established international financial centre with considerable expertise in investment funds, banking and cross-border financial services. Closer engagement between financial institutions in the two countries offers opportunities to expand capital flows and support investment in areas of mutual interest.

Sustainable finance formed an important part of the discussions, reflecting the growing emphasis on mobilising capital for environmentally responsible infrastructure and economic development.

Sitharaman also expressed India’s interest in the forthcoming state visit of the Grand Duke of Luxembourg, expected in early 2027. The visit is anticipated to provide an additional opportunity to strengthen bilateral economic and financial cooperation.

India-Thailand Financial Partnership Moves Forward

The October 16 discussions between India and Thailand highlighted the expanding economic relationship between the two countries and their shared interest in developing modern financial infrastructure.

The proposed UPI-PromptPay linkage, exploration of local currency settlement mechanisms and cooperation in fintech innovation represent important avenues for strengthening financial connectivity.

India’s invitation to Thai financial institutions to participate in the GIFT City ecosystem also creates opportunities for closer engagement in international banking, capital markets and investment services.

The discussions complement the broader India-Thailand Strategic Partnership and reinforce the importance of financial cooperation in expanding trade and investment.

Continued engagement in digital payments, emerging technologies, financial services and investment will strengthen India-Thailand economic relations and support greater financial integration between the two important Asian economies.

---

References

1. Ministry of Finance, Government of India — October 14, 2026. Union Minister for Finance and Corporate Affairs Nirmala Sitharaman to Embark on Official Visit to Bangkok, Thailand, from October 14–18, 2026. Press Information Bureau.
   https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=2323205
2. Prime Minister’s Office, Government of India — April 2025. Prime Minister Meets Prime Minister of Thailand in Bangkok. Official account of bilateral discussions and the expansion of strategic cooperation.
   https://www.pmindia.gov.in/en/news_updates/pm-meets-with-the-pm-of-thailand/
3. Ministry of Commerce and Industry, Government of India — September 9, 2026. Piyush Goyal Meets Thailand’s Deputy Prime Minister and Minister of Commerce to Strengthen Trade and Investment Cooperation. Press Information Bureau.
   https://www.pib.gov.in/PressReleasePage.aspx?PRID=2308431
4. Ministry of Finance, Government of India — May 22, 2026. Nirmala Sitharaman Chairs Review Meeting at GIFT City, Gandhinagar. Press Information Bureau.
   https://www.pib.gov.in/PressReleasePage.aspx?PRID=2264333

---