New Delhi, June 3: President Droupadi Murmu on Tuesday held discussions with Thongsavanh Phomvihane, Deputy Prime Minister and Minister of Foreign Affairs of the Lao People’s Democratic Republic (Lao PDR), reaffirming the commitment of both countries to deepen cooperation in trade, investment, technology, development partnership and people-to-people exchanges.
Phomvihane called on the President at Rashtrapati Bhavan during his first official visit to India, which coincides with the 70th anniversary of the establishment of diplomatic relations between India and Lao PDR.
Welcoming the visiting dignitary, President Murmu said India and Lao PDR are connected by deep civilisational bonds rooted in Buddhism and the shared cultural legacy of the Ramayana. She described the 70th anniversary of diplomatic relations as a significant milestone that reflects the enduring friendship between the two countries.
The President recalled Prime Minister Narendra Modi’s visit to Lao PDR in October 2024 for the ASEAN-related summits, noting that the agreements and understandings reached during that visit had injected fresh momentum into bilateral relations.
While acknowledging the growth in bilateral trade in recent years, President Murmu observed that considerable untapped potential remains in both trade and investment. She said India is keen to expand cooperation with Lao PDR in areas such as information and communication technology, healthcare, pharmaceuticals, agriculture, irrigation, manufacturing, renewable energy and power generation.
The President also expressed India’s willingness to share its experience in innovation, digital governance and the knowledge economy, noting that development cooperation between the two countries has increasingly aligned with the aspirations of Lao youth and the country’s socio-economic priorities.
The meeting took place against the backdrop of growing efforts by both countries to strengthen economic engagement. Earlier in the day, addressing the India–Lao PDR Business Forum in New Delhi, Phomvihane called for transforming the traditionally strong political relationship between the two countries into a deeper economic partnership.
“As Lao PDR and India mark 70 years of diplomatic relations, we see a clear opportunity to elevate our partnership from strong political ties to deeper economic collaboration,” he said.
The Deputy Prime Minister noted that bilateral trade had crossed USD 82 million in 2024 and said the current level of economic engagement represented only a fraction of the opportunities available to businesses on both sides.
Highlighting Lao PDR’s investment potential, Phomvihane described his country as one of the most politically stable nations in the region and a strategic gateway to the Mekong sub-region. He pointed to the country’s location at the heart of Southeast Asia, its connectivity with neighbouring economies, and the transformative impact of the Laos–China Railway on regional logistics and supply chains.
“We do not just look for investors, but we look for strategic partners,” Phomvihane said, inviting Indian companies to participate in sectors including clean agriculture, renewable energy, information and communications technology, advanced logistics, pharmaceuticals, tourism, finance and manufacturing.
He also underlined Lao PDR’s emphasis on green growth and digital transformation, supported by reforms aimed at improving the investment climate through modernised regulations, expanded digital services and investor-friendly incentives.
Officials from both countries have identified several sectors with strong potential for collaboration, including manufacturing, renewable energy, mining, agro-processing, healthcare, digital technologies and tourism. India currently extends Duty-Free Tariff Preference benefits to Lao PDR, providing preferential market access for products manufactured in the Southeast Asian nation.
The President and the Deputy Prime Minister agreed that closer cooperation in economic development, capacity building, technology and connectivity would generate significant benefits for the people of both countries.
The visit comes at a time when India is seeking to strengthen engagement with Southeast Asia through its Act East Policy, while Lao PDR is pursuing greater regional connectivity and economic integration. As both countries commemorate seven decades of diplomatic relations, officials on both sides have expressed confidence that the partnership is poised to expand beyond its traditional foundations into new areas of economic and strategic cooperation.
