Business Standard - 11 May 2026
Review of trade in goods pact with ASEAN priority for India: MEA
By Archis Mohan
The government is keen to conclude the review of the ASEAN-India Trade in Goods Agreement (AITIGA) at the earliest. India is negotiating bilaterally with countries in the Southeast Asian trading bloc for improved access to Indian pharmaceuticals and agricultural produce.
Participating in a panel discussion, "A Bridge to the East: India's Partnerships with East and Southeast Asia", Prashant Agrawal, Additional Secretary (South), Ministry of External Affairs, said the visits of Vietnamese President To Lam earlier this month, South Korean President Lee Jae Myung in April, and Prime Minister Narendra Modi’s visit to Malaysia in February showed the “strong and transformational implementation of India’s 'Act East' policy”.
The AITIGA is currently under review. India’s trade with ASEAN countries is worth $123 billion currently, of which its imports are $84 billion and exports only $39 billion, he said. The government wants this trade to be balanced in order to be sustainable, and across the government there is a strong emphasis on concluding this review at the earliest, the official said, adding that most of the issues that the industry has flagged on this are being taken on board.
Agrawal said that irrespective of the trade agreement, New Delhi is working bilaterally with ASEAN member countries to ensure market access for Indian companies and producers, such as export of pharmaceuticals to the Philippines and Vietnam.
India is the largest supplier of pharmaceuticals to Vietnam, accounting for 45 per cent of its imports by volume. There is intent to "do more”, with the Indian drug regulator engaging with its counterpart in Vietnam to address regulatory issues.
India’s defence exports to these countries, such as night vision devices, and bullet proof vests, have increased and the sector is opening up.
The country is planning to export 200 containers of grapes to Vietnam, following the agreements signed during the Vietnamese President’s visit to India.
Japan, Singapore and South Korea remain some of the biggest investors in India. Agrawal said it was encouraging that companies in these countries were keen to invest more in India despite geopolitical turbulence. Vietnam and India have also signed an agreement for cooperation in rare earth minerals.
The participants discussed India’s "Act East" policy, which marks more than a decade of engagement. The discussion explored ways to leverage Free Trade Agreements, unlock investment potential, build resilient supply chains, and position India more effectively within Indo-Pacific value chains, and economic frameworks.
Narayan Sethuramon, managing director, Sanmar Matrix Metals Limited, said India is signing FTAs with the western world, but there is a growing recognition that the country’s Asia strategy remains underemphasised.
FTAs are not static documents but living frameworks, and contain institutional mechanisms designed to be actively used to address issues of market access and clarify rules, he said. The AITIGA review provides an opportunity to address existing asymmetries, simplify rules of origin, and look at non-tariff barriers, Sethuramon said.
India should focus on integrating into Asian value chains, improving trade facilitation, and supporting MSMEs participation, enhancing connectivity with the region and Indian industry must invest in the region, and form strategic alliances, he said.
Other participants included Taimur Baig, chief economist, DBS Bank (Singapore), Stephen Kim, chief executive officer DeltaX Company Limited, South Korea, and Yuji Ando of Japan External Trade Organization Country (JETRO), with foreign policy expert C Raja Mohan moderating the discussion.
