ASEAN-India Economic Relations

Overview

India became ASEAN Dialogue Partner in 1996. Preliminary ASEAN data showed that two-way merchandise trade between ASEAN and India reached USD 77.0 billion in 2019, while total FDI inflows from India amounted to USD 2.0 billion. This placed India as ASEAN’s sixth largest trading partner and eight largest source of FDI among ASEAN Dialogue Partners.

At the 2nd ASEAN-India Summit in 2003, the Leaders signed the ASEAN-India Framework Agreement on Comprehensive Economic Cooperation. The Framework Agreement laid a sound basis for the establishment of an ASEAN-India Free Trade Area (FTA), which includes FTA in goods, services and investment.

The ASEAN-India Trade in Goods Agreement (AITIGA) entered into force on 1 January 2010. The signing of the AITIGA on 13 August 2009 in Bangkok paved the way for the creation of one of the world’s largest free trade areas with more than 1.9 billion people and a combined GDP of US$ 5.36 trillion. The ASEAN-India Trade in Services Agreement was signed by all Parties on 13 November 2014 and had entered into force on 1 July 2015. As of date, the Agreement has been ratified by all Parties. Meanwhile, the ASEAN-India Investment Agreement was signed by all Parties on 12 November 2014. The Agreement entered into force on 1 July 2015. To date, it has been ratified by all Parties, except Cambodia.

Priority Areas of Cooperation

Under the Framework Agreement, ASEAN and India prioritise the following areas:

Trade Facilitation:
1. Mutual Recognition Arrangements, conformity assessment, accreditation procedures,and standards and technical regulations;
2. non-tariff measures;
3. customs cooperation;
4. trade financing; and
5. business visa and travel facilitation.
Sectors of Cooperation:
1. agriculture, fisheries and forestry;
2. services: media and entertainment, health, financial, tourism, construction, business process outsourcing, environmental;
3. mining and energy: oil and natural gas, power generation and supply;
4. science and technology: information and communications technology, electronic commerce, biotechnology;
5. transport and infrastructure: transport and communication;
6. manufacturing: automotive, drugs and pharmaceuticals, textiles, petrochemicals, garments, food processing, leather goods, light engineering goods, gems and jewellery processing;
7. human resource development: capacity building, education, technology transfer; and others: handicrafts, small and medium enterprises, competition policy, Mekong Basin Development, intellectual property rights, government procurement.
Trade and Investment Promotion:
1. fairs and exhibitions;
2. ASEAN-India weblinks; and
3. business sector dialogues.

Major Sectoral Bodies/Committees

The ASEAN-India Trade Negotiating Committee (TNC) was constituted to undertake the negotiations. The ASEAN-India TNC reports regularly to the consultations of the ASEAN Economic Ministers, and India’s Minister of Commerce and Industry (known as AEM-India) through the meetings of their Senior Economic Officials (known as ASEAN SEOM-India).

A number of Working Groups to the ASEAN-India TNC were established such as Working Group on Rules of Origin (WGROO), Working Group on Services (WGS) dan Working Group on Investment (WGI).

Key Documents

Agreements

Schedule of Tariff Commitments

Legal Enactment

Schedule of Commitment

Advanced search

Advanced search