The ancient town of Gaya is one of the major new Indian destinations for Thai tourists, being of great significance to both Buddhists and Hindus.

Dr Somkid said the Indian Chamber of Commerce had also urged local officials to promote Thailand as a good location for Bollywood film shoots, given the kingdom's scenic destinations such as Koh Samui, Koh Phangan and Koh Samet.

The Tourism Development Office earlier projected that revenue from foreign film production in Thailand would grow to 1.25 billion baht in 2006, up from 1.13 billion baht last year.

In 2005, there were 492 productions in Thailand, up from 441 a year earlier. This includes documentaries, commercials, feature films, TV shows and music videos.

Most productions in 2005 were small-budget films and TV shows for Europe and Asia. Large-scale productions were hindered by slow legal processes and impractical regulations.

Among recent Bollywood films shot in Thailand is Naksha, a thriller that is scheduled to open in India on Sept 8.

Previously, Thailand had a competitive edge as a film location due to its beautiful landscapes. Now that locations can be computer-generated, Thailand is having to find alternative ways to boost its competitiveness in the industry.

International competition is also growing as more countries offer tax incentives.

According to Dr Somkid, the private sector would spearhead bilateral co-operation, while the authorities of the two countries would act only as facilitators.

Thai investors have opportunities to tap several sectors in India, including infrastructure construction, food processing, restaurants, health care and spas, while India can offer Thailand expertise in the English language, education and science.