At $82 million, the bilateral trade between India and Laos is small, a point which Lao’s visiting Deputy Prime Minister Thongsavan Phomvihane alluded to when he said, “The trade between our two countries is still very modest, but we know that Laos and India still have a lot of opportunity, a lot of potential that we should expand.”
Of this around $50 million comprises Laos exports to India comprising electrical and electronic equipment, agricultural products and manufactured goods. India, in turn, supplies vehicles, machinery, pharmaceuticals and textiles.
Positioning Laos as a stable and strategically located gateway to Southeast Asia, at the India-Laos Business Forum in New Delhi, Phomvihane said Laos is seeking more than capital inflows and is looking for long-term partnerships that can contribute to sustainable growth, innovation, and regional connectivity.
“We do not simply seek investors; we seek strategic partners,” he told business leaders and government representatives gathered at the forum. “We are committed to working together to create sustainable solutions, strengthen supply chains, and promote shared prosperity.”
Highlighting Laos’ economic potential, he pointed to the country’s political stability, peaceful environment, and strategic location at the center of the Mekong sub-region. Sharing borders with China, Thailand, Vietnam, Cambodia, and Myanmar, Laos is positioning itself as a regional hub connecting major Asian markets.
An important aspect of this ambition is the Laos-China Railway, which has dramatically improved the region’s logistics and trade connectivity. Due to lowered transportations costs and improved access to regional supply chains, Phomvihane said Laos had become more attractive to foreign investment.
He also said Laos is undergoing a broader economic transformation focused on green growth and digital development. The country has abundant renewable energy resources, a growing digital ecosystem and a competitive workforce, creating opportunities across several sectors.
The Lao government has identified agriculture and agro-processing, cultural and eco-tourism, industrial development and special economic zones as priority areas for investment.
These sectors are expected to be at the core of the country’s efforts to become a regional production and processing hub. In a bid to attract international investors, the Southeast nation has launched reforms to improve the business environment. These include simplified investment procedures, expanded digital government services and a host of tax and financial incentives under the country’s investment promotion framework.
