India Accelerates Review of ASEAN Trade Pact Amid FTA Expansion Efforts
India prioritises ASEAN trade pact review amid wider FTA push: MEA
Business Standard
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India is prioritizing the review of the ASEAN-India Trade in Goods Agreement (AITIGA) to enhance trade relations with Southeast Asian nations. With current trade valued at $123 billion, the government aims to balance imports and exports, particularly in pharmaceuticals and agricultural products, while fostering bilateral agreements to boost market access.
- 01India's trade with ASEAN is currently valued at $123 billion, with imports at $84 billion and exports at $39 billion.
- 02The review of the AITIGA aims to address trade imbalances and improve access for Indian goods, particularly pharmaceuticals.
- 03India is the largest supplier of pharmaceuticals to Vietnam, accounting for 45% of its imports by volume.
- 04Bilateral agreements are being pursued to enhance market access for Indian producers in ASEAN countries.
- 05India's 'Act East' policy is being actively implemented through high-level visits and discussions on Free Trade Agreements (FTAs).
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The Indian government is focused on concluding the review of the ASEAN-India Trade in Goods Agreement (AITIGA) to enhance trade relations with the ASEAN bloc, which currently stands at $123 billion. The review aims to address trade imbalances, with imports from ASEAN countries at $84 billion and exports at only $39 billion. Prashant Agrawal, Additional Secretary in the Ministry of External Affairs, highlighted the importance of high-level visits, including those from Vietnamese President To Lam and South Korean President Lee Jae Myung, in demonstrating the effectiveness of India's 'Act East' policy. India is particularly keen to improve access for its pharmaceuticals and agricultural products, with ongoing bilateral negotiations to facilitate exports, especially to Vietnam and the Philippines. The country is also increasing its defense exports and has plans to export 200 containers of grapes to Vietnam following recent agreements. The discussion emphasized the need for India to integrate into Asian value chains and enhance trade facilitation, while also addressing non-tariff barriers and simplifying rules of origin. The review of AITIGA is seen as an opportunity to create a more balanced trade framework and support the participation of micro, small, and medium enterprises (MSMEs) in the region.
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The review of the AITIGA and enhanced trade relations with ASEAN could lead to increased market access for Indian businesses, potentially boosting exports and creating job opportunities in sectors like pharmaceuticals and agriculture.
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