India and ASEAN to conduct another round of Free Trade Agreement review in October
The next round of negotiations for the ASEAN-India Trade in Goods Agreement (AITIGA) review process is set to take place in October in Jakarta, Indonesia[1][3]. The review meeting was held this week in New Delhi between Indian negotiators and the ASEAN, with the focus on enhancing market access, improving tariff reduction commitments, and refining product-specific rules of origin (ROO) to boost the trade relationship between India and ASEAN[1][3][5].
Key points of the negotiation focus include:
- Market Access: India seeks greater market access across ASEAN countries and aims to address concerns about uneven tariffs that allegedly allow re-export of Chinese goods via ASEAN into India, which has been a significant issue affecting the trade balance[3][2]. The talks are reportedly progressing to make AITIGA more effective and accessible, facilitating smoother trade flows[1][5].
- Tariff Reduction Commitments: While detailed specifics of tariff cuts in the ongoing round have not been publicly disclosed, the review discussions focus on strengthening trade facilitation and advancing tariff commitments under the agreement to improve competitiveness and trade volumes between both sides[1][3][5].
- Product-Specific Rules of Origin (ROO): A contentious point for India, the ROO rules under AITIGA are being reviewed to introduce more flexibility to ensure mutual benefit and to prevent misuse, particularly to curb inflow of goods merely routed through ASEAN without sufficient value addition. India has emphasized the importance of synergies and complementarities in ROO to diversify supply chains, supporting alternatives to China-centric trade patterns[2][3].
Beyond these core goods trade elements, the negotiations are exploring wider trade facilitation issues, regulatory streamlining, and cooperation in emerging sectors like semiconductors, digital trade, green technology, skills development, and capacity building, signaling a move towards a more comprehensive economic partnership[1][2][5].
India's trade deficit with the ASEAN increased to $45.2 billion in FY25 from about $7 billion in 2010[4]. The current negotiations aim to balance the $123 billion bilateral trade relationship and reduce India's trade deficit with ASEAN. The next round of negotiations is expected to finalize some of these updates by the end of the year[3][1].
[1] The Hindu, "AITIGA review: India seeks greater market access, ROO flexibility," August 15, 2025. [2] The Economic Times, "India pushes for product-specific ROO in AITIGA," August 14, 2025. [3] The Straits Times, "India seeks to address non-tariff barriers in AITIGA," August 13, 2025. [4] Ministry of Commerce and Industry, "India's Trade with ASEAN," FY25. [5] Press Information Bureau, Government of India, "Joint Committee Meeting on AITIGA held in New Delhi," August 15, 2025.
- The next round of negotiations for the ASEAN-India Trade in Goods Agreement (AITIGA) will strive to boost market access by addressing uneven tariffs and re-export issues, aiming to establish a more effective and accessible agreement that facilitates smoother trade flows.
- To enhance the competitiveness and trade volumes between India and the ASEAN, focused efforts are being made during these negotiations to improve tariff reduction commitments and advance concessions under the agreement.
- Beyond the core trade elements, the discussions are expanding to encompass wider trade facilitation issues, regulatory streamlining, and cooperation in emerging sectors such as semiconductors, digital trade, green technology, skills development, and capacity building, envisioning a more comprehensive economic partnership.
- In an attempt to balance India's $123 billion bilateral trade relationship with the ASEAN, the current negotiations are targeting the reduction of India's trade deficit, with a goal to finalize updates by the end of the year and ensure a more balanced economic partnership.
