ASEAN-India Trade Talks Aim for 2025 Deal Upgrade

Photo courtesy of Vietnam Plus

In a pivotal move to strengthen economic bonds, Vietnamese Deputy Minister of Industry and Trade, Nguyen Sinh Nhat Tan, highlighted India's growing importance to Southeast Asia, urging a swift completion of negotiations over the ASEAN-India Trade in Goods Agreement (AITIGA).

During the special ASEAN Economic Ministers' meeting on 28th August, Tan, leading a delegation from Vietnam's ministries of industry, trade, finance, and technology, emphasised that the revised trade pact would enhance economic collaboration and increase commerce between ASEAN and India. The meeting took place virtually, chaired by Malaysia's Minister of Investment, Trade and Industry, Tengku Zafrul Abdul Aziz, and attended by ASEAN economy ministers and Deputy Secretary-General Satvinder Singh.

The joint negotiating committee presented updates on current progress, along with unresolved issues and strategies to accelerate talks. Ministers set a target to finalise the review and upgrade by 2025, laying the groundwork for further ASEAN economic gatherings scheduled for late September 2025.

Trade between ASEAN and India reached 3.8 trillion THB in 2024, a 6.05% rise compared to the previous year, according to Vietnam's Ministry of Industry and Trade. ASEAN exports to India surged by 7.6% to 2.5 trillion THB, while Indian imports into ASEAN increased by 3.4% to 1.3 trillion THB.

Vietnam and India's trade volume hit 532 billion THB in 2024, marking a 4.5% increase year-on-year. Vietnamese exports to India soared by 7.6% to 324 billion THB, whereas imports experienced a slight decrease of 0.6% to 208 billion THB.

The proposed AITIGA revisions aim to streamline trade policies, remove barriers, and foster a more robust economic environment for both regions. While the current agreement has facilitated trade, an updated version is expected to address more contemporary challenges, including digital trade and sustainable practices.

As negotiations proceed, stakeholders remain hopeful for a fruitful and timely conclusion. The successful completion of these talks could signal a new era of economic connectivity, driving growth and innovation across Southeast Asia and India.

In the coming months, the focus will be on ironing out remaining differences and crafting a mutually beneficial agreement. With economic landscapes constantly evolving, the urgency of reinforcing trade relations has never been more pronounced, ensuring that both ASEAN and India remain competitive on the global stage.

This anticipated upgrade comes at a crucial time, with the world economy seeking stability and growth. As ASEAN and India look to future partnerships, the outcome of these negotiations will likely resonate across the region, fostering economic resilience and shared prosperity.

  Adapted by ASEAN Now from Vietnam Plus 2025-08-29