Deputy Prime Minister and Minister of Foreign Affairs Thongsavanh Phomvihane speaks at the India-Laos Business Forum in India on Wednesday.

Laos, India seek deeper trade, business engagement

The governments of Laos and India are looking to translate decades of strong diplomatic relations into deeper economic engagement through expanded trade, investment and business cooperation.
That goal was at the centre of discussions at the 2nd India-Laos Business Forum held in New Delhi on Wednesday, which brought together government officials and business leaders from both countries to explore new opportunities for partnership.

Deputy Prime Minister and Minister of Foreign Affairs Thongsavanh Phomvihane (fourth from left) leads a high-level Lao delegation attending the India-Laos Business Forum.

Held alongside the official visit by Laos’ Deputy Prime Minister and Minister of Foreign Affairs Thongsavanh Phomvihane to India from June 1-3, the forum was jointly organised by the Lao National Chamber of Commerce and Industry (LNCCI) and the Indian Chamber of Commerce.
Recent trade data suggests there remains considerable scope for growth in bilateral economic relations.
According to figures published by The Observatory of Economic Complexity (OEC), an online platform that analyses and visualises global trade and economic activity, India’s exports to Laos amounted to US$1.36 million in March 2026, an increase of 11 percent from US$1.23 million in the same month last year.
Despite the recent increase, India’s exports to Laos have declined at an average annual rate of 13.4 percent over the past five years, highlighting the untapped potential for deeper commercial engagement between the two countries.
The increase in India’s exports in March was driven largely by pharmaceutical and electronics products. Exports of bulk drugs and pharmaceutical intermediates rose by 172 percent year-on-year to US$193,000, while shipments of electronics components reached US$115,000. Exports of prescription drugs and biological products also recorded growth, reaching US$53,100.
On the import side, electronics components remained India’s largest import from Laos, valued at US$23 million. Imports of other commodities and wood-based products also recorded notable growth, reflecting the broadening scope of economic exchanges between the two countries.
Deputy Prime Minister Thongsavanh Phomvihane and India’s Assistant Minister of External Affairs, Prashant Agrawal, attended the forum as guests of honour. Also present were Laos’ Deputy Minister of Foreign Affairs Anouparb Vongnorkeo, ambassadors from both countries, and representatives of leading businesses.
Deputy Prime Minister Thongsavanh stressed the Lao government’s wish to maintain a favourable investment climate and encouraged Indian businesses to explore opportunities in sectors with strong growth potential.
Participants discussed opportunities for cooperation across sectors such as trade, investment, services, technology, agriculture and clean energy.
Members of the Indian Chamber of Commerce described the forum as an important platform for fostering partnerships between the business communities of both countries. They also announced plans to lead a delegation of Indian entrepreneurs to Laos to further explore cooperation opportunities in trade, investment and services.
Particular attention is expected to be given to cooperation in civil aviation, which both sides regard as an important sector for promoting tourism, facilitating business travel, and strengthening people-to-people links.
The forum took place against the backdrop of India’s Act East Policy, which seeks to deepen economic, strategic and cultural engagement with Southeast Asian countries through regional and sub-regional cooperation frameworks.
Laos is viewed as an important partner due to its central location in the Mekong region and its role as a land-linked gateway connecting neighbouring countries.
At the close of the forum, the two sides expressed confidence that stronger business cooperation would contribute to the continued growth of Laos-India relations and create new opportunities for sustainable economic development in the years ahead.

By Times Reporters
 (Latest Update June 8, 2026)