JAKARTA, 24 October 2025 – The long-standing ASEAN–India Trade in Goods Agreement (AITIGA) is set for renewed momentum as leaders gather for the ASEAN–India Summit, widely viewed as a pivotal platform to untangle negotiation bottlenecks and reinvigorate trade between the two regions.
Officials said the summit, held alongside other ASEAN-related meetings, is expected to produce a fresh roadmap aimed at addressing structural and procedural hurdles that have constrained the AITIGA’s potential since its implementation in 2010. The review of the agreement, launched in 2022, seeks to make it more business-friendly, up-to-date with digital trade realities, and aligned with current supply-chain dynamics.
According to ASEAN officials quoted by Bernama, the revised pact is crucial for achieving “inclusive, sustainable, and mutually beneficial growth” between ASEAN and India. The 2025 summit comes amid renewed calls for trade modernisation, tariff simplification, and better utilisation of origin rules. areas where negotiators have struggled to reach consensus for years.
Breaking the Logjam
Trade experts note that while ASEAN and India’s bilateral trade has grown steadily, reaching approximately US$131 billion in 2024, the pace has lagged behind other major trading partners such as China, Japan, and the European Union. Many ASEAN nations view the AITIGA as overly complex and limited in its utilisation, especially for small and medium enterprises (SMEs).
The AITIGA review aims to tackle these challenges by:
- Streamlining rules of origin and customs procedures;
- Expanding market access for agriculture, manufacturing, and services;
- Incorporating digital trade, logistics, and e-commerce frameworks; and
- Addressing non-tariff barriers that hinder smoother trade flows.
India’s Ministry of Commerce has reaffirmed its commitment to finalising the review “within 2025,” aligning with Prime Minister Narendra Modi’s Act East Policy to deepen India’s economic engagement with Southeast Asia.
Strategic and Economic Significance
For ASEAN, reinvigorating the AITIGA holds strategic weight beyond trade. The region’s evolving economic landscape, shaped by supply-chain diversification, U.S.–China rivalry, and energy transition priorities, has elevated India’s role as both a manufacturing and digital-services partner.
Revised cooperation is expected to enhance:
- Resilient regional supply chains linking ASEAN hubs with India’s industrial base;
- Investment flows into green and high-tech industries;
- Connectivity and logistics through maritime and digital corridors; and
- SME participation in cross-border value chains.
Observers note that both sides are also exploring synergies with India’s Indo-Pacific Oceans Initiative (IPOI) and ASEAN’s Outlook on the Indo-Pacific (AOIP), signalling a broader convergence in regional economic and security thinking.
Expert Views
ASEAN economic advisers believe that a successfully modernised AITIGA could lift total ASEAN–India trade by 20% within five years, creating new momentum for integration amid global fragmentation. “This review is not merely a technical process; it is a test of ASEAN–India partnership maturity,” said one regional trade expert.
If achieved, the breakthrough could mark a milestone in ASEAN’s broader ambition to diversify its trade networks while maintaining open, rules-based economic cooperation.
Source: Bernama
