Trade and investment between India and Lao PDR

This article covers trade and investment between India and Lao PDR: the bilateral trade figures, India's duty-free tariff preference for Laos, the trade agreements, business chambers and events, and Indian investment in Laos. It is based on the MEA brief of June 2026, and all figures are as given in that brief.

Bilateral trade

According to the MEA brief of June 2026, bilateral trade registered growth of 23.4% in 2023-24 over the previous year, following a decline during Covid-19. The brief gives the following figures in US $ million, with the Department of Commerce, Government of India, as the source:

2019-20: Indian exports to Lao PDR 25.08, Indian imports from Lao PDR 3.09, total trade 28.17.
2020-21: Indian exports 27.34, Indian imports 1.70, total trade 29.04.
2021-22: Indian exports 14.65, Indian imports 0.80, total trade 15.45.
2022-23: Indian exports 16.98, Indian imports 74.30, total trade 91.28.
2023-24: Indian exports 12.88, Indian imports 99.73, total trade 112.62.

The same table records India's balance of trade with Lao PDR as 21.99 in 2019-20, 25.64 in 2020-21 and 13.85 in 2021-22, and as (-) 57.32 in 2022-23. The brief does not list the main goods traded in either direction.

Duty-free access to the Indian market

In pursuance of an announcement made by the Prime Minister of India in April 2008, India has accorded the Duty Free Tariff Preference Scheme (DFTP) to Lao PDR. The brief states that the Scheme grants Laos duty free access to 94% of India's total tariff lines.

Trade and customs agreements

Two of the agreements listed in the brief relate directly to trade:

Agreement on Trade and Economic Cooperation (09 November 2000)
MoU for Customs Cooperation Agreement between India and Lao PDR (11 October 2024)

The customs MoU was among the documents exchanged in the presence of the two Prime Ministers during Prime Minister Narendra Modi's visit to Vientiane in October 2024.

Ministerial contacts on trade

Minister of Commerce and Industry Shri Piyush Goyal led the Indian delegation to the 21st ASEAN-India Economic Ministers (AEM-India) meeting and the 12th East Asia Summit Economic Ministers Meeting (EAS EMM) in Lao PDR on 20-21 September 2024. During the visit he held a bilateral meeting with his Lao counterpart, Malaithong Kommasith.

Business chambers and the India-Laos Business Forum

The ASEAN India Business Council (AIBC), which is based in Malaysia, has a Chapter in Lao PDR. India's Embassy, in collaboration with the Indian Chamber of Commerce (ICC), the Lao National Chamber of Commerce and Industry (LNCCI) and the AIBC, organised the India-Laos Business Forum in Vientiane on 12 February 2024.

The Forum was launched by Malaythong Kommasith, Minister of Industry and Commerce, and saw participation of more than 170 business leaders representing more than 100 companies. An MoU was signed between the ICC and the LNCCI, and another between the ICC and the AIBC, to promote business linkages.

The brief also states that India's Mission has facilitated visits by Indian companies such as Afcons, Kirloskar and Adani, and their meetings with the Lao Government and businesses to explore opportunities.

Indian investment in Laos

As per Lao National Enterprise Database statistics cited in the brief, a total of 77 projects have been registered by Indian entrepreneurs since 01.01.2008, with a total investment of US $ 48 million. As of the brief, India is ranked 13th amongst the countries that have invested in Laos.

The brief adds a caution about these figures: they probably include investments by companies that may have closed their operations in Laos and sold to local companies or other foreign investors.

The brief names two Indian-linked ventures:

HSMM group, set up by some Indian nationals and PIOs and registered in Vientiane, has invested US $ 13.8 million in agarwood plantations and has two factories, in Vientiane and in Xaysomboun Province.
Brookfields Coffee Co. Ltd, an Indian company, has a coffee plantation over 84.46 hectares in Paksong. The brief notes that it has recently divested its stake in the project.

The brief gives no figures for investment from Lao PDR in India.

Since the brief of June 2026

Later developments in India and Lao PDR relations, from MEA publications, newest first. The article above reports the brief at its date.

Questions and answers

What was India-Lao PDR trade in 2023-24?

According to the MEA brief of June 2026, total trade in 2023-24 was US $ 112.62 million, with Indian exports of 12.88 and Indian imports of 99.73 (US $ million).

How much have Indian companies invested in Laos?

As per Lao National Enterprise Database statistics cited in the brief, 77 projects have been registered by Indian entrepreneurs since 1 January 2008, with a total investment of US $ 48 million.

Does Laos have duty-free access to the Indian market?

India has accorded the Duty Free Tariff Preference Scheme (DFTP) to Lao PDR, which grants Laos duty free access to 94% of India's total tariff lines.

Sources

This article reports what the sources state at their date and does not add facts from elsewhere. Figures, office holders and agreements may have changed since. Diplo is independent and not affiliated with any government. Suggest a correction.