Introduction and Overview

- The 6th ASEAN-India Trade in Goods Agreement (AITIGA) Joint Committee and associated meetings were recently held in New Delhi.

- This meeting marked a crucial phase in the review of AITIGA to augment trade relations between India and ASEAN nations.

 

Key Highlights of the Meeting

- India's request for a review of AITIGA, implemented in 2010, was a key highlight due to disproportionate trade benefits for ASEAN countries.

- While exports from India to ASEAN rose from USD 25.62 billion (2010-11) to USD 41.2 billion (2023-24), imports surged from USD 30.6 billion to USD 79.66 billion in the same duration.

 

India’s Objectives in the Review

- One of India's objectives is to secure enhanced Market Access, with a special appeal for countries, specifically Vietnam, to make more significant market-opening commitments towards Indian goods.

- Stringent Rules of Origin (ROO) is another objective of India aiming to prevent Chinese goods from being routed through ASEAN nations at preferential rates.

 

Advancements in Negotiations

- India and ASEAN nations achieved initial progress in commencing tariff negotiations, which is a crucial part of the review process.

 

ASEAN's Contribution to India's Global Trade

- ASEAN accounts for about 11% of India’s global trade.

- Bilateral trade tallied at USD 121 billion in FY 2023-24 and recorded USD 73 billion (April-October 2024), indicating a 5.2% growth.

- India’s trade deficit with ASEAN escalated from USD 4.98 billion in 2010-11, the first full operational year of AITIGA to USD 38.4 billion in 2023-24.