India and ASEAN Fast-Track FTA Review, Set Targets to Resolve Pending Trade Issues
The review of the ASEAN-India Trade in Goods Agreement aims to improve the effectiveness of the pact, as India’s trade deficit with the bloc reached $51.54 billion in 2025–26.
India and the Association of Southeast Asian Nations (ASEAN) have agreed to accelerate negotiations on pending chapters of their trade agreement, setting time-bound deliverables to resolve outstanding issues and improve the pact’s effectiveness. The decision was taken at the 15th meeting of the ASEAN-India Trade in Goods Agreement (AITIGA) Joint Committee, held in Jakarta from October 6 to 9.
Joint Committee Calls for Faster Negotiations
According to a statement from India’s Ministry of Commerce and Industry, the Joint Committee directed all eight sub-committees involved in the AITIGA review to accelerate negotiations and coordinate closely. The objective is to achieve measurable progress towards concluding the review.
The next Joint Committee meeting is scheduled to take place in India in January 2027 in a hybrid format. It will assess progress and provide further guidance to support the timely conclusion of negotiations.
The meeting was co-chaired by Nitin Kumar Yadav, Additional Secretary in the Department of Commerce, and Mastura Ahmad Mustafa, Deputy Secretary General (Trade) at Malaysia’s Ministry of Investment, Trade and Industry. Delegations from ASEAN member states participated in the discussions.
Eight Sub-Committees Working on the Review
The review is being handled by eight sub-committees covering key areas of the trade agreement:
- Customs Procedures and Trade Facilitation (SC-CPTF)
- Legal and Institutional Issues (SC-LII)
- National Treatment and Market Access (SC-NTMA)
- Sanitary and Phytosanitary Measures (SC-SPS)
- Rules of Origin (SC-ROO)
- Standards, Technical Regulations and Conformity Assessment Procedures (SC-STRACAP)
- Trade Remedies (SC-TR)
Three sub-committees dealing with legal and institutional issues, national treatment and market access, and rules of origin also met alongside the Joint Committee to advance negotiations in their respective areas.
Review Seeks to Address Trade Imbalances
India began seeking a review of AITIGA within five years of the agreement becoming operational in 2010, as imports from ASEAN increased and India did not achieve the expected benefits from the pact. ASEAN agreed to the review in November 2019, although negotiations did not begin for another two years.
Both sides had previously set the end of 2025 as the deadline for completing the review, but that target was missed.
India sought the review amid concerns over its limited gains from the agreement and the widening trade deficit with the ASEAN bloc.
According to the figures provided, India’s trade deficit with ASEAN increased from $4.98 billion in 2010–11, the first full year of AITIGA’s operation, to $51.54 billion in 2025–26.
ASEAN Remains a Major Trading Partner
ASEAN is an important trading partner for India, with bilateral trade spanning electronics, machinery, chemicals, petroleum products, agricultural commodities and other manufactured goods.
The accelerated review is intended to address outstanding issues in the existing agreement and improve its effectiveness. The January 2027 Joint Committee meeting will provide an opportunity to evaluate progress against the targets set by the negotiating groups.