Kolkata, Dec 8 (PTI) The ASEAN-India trade pact is currently undergoing a comprehensive review to transform it into a more trade-facilitating, balanced and responsive framework aligned with current economic realities, a senior diplomat said on Thursday.
Speaking virtually from Jakarta at an Assocham event organised in partnership with the Ministry of External Affairs, India’s Ambassador to ASEAN Srinivas Gotru said the Department of Commerce is leading the discussions to modernise the pact and “expressed hope” that the review would conclude at the earliest.
He noted that if a conclusion happens this year, it could unlock significant value and improve market access for both economies from the ASEAN-India Trade in Goods Agreement (AITIGA).
“The idea is to make this agreement more responsive to current economic realities,” Gotru said, adding that the government is impressing upon ASEAN partners the need for a swift conclusion.
Highlighting the depth of the relationship, Gotru said trade between India and ASEAN stood at around USD 123 billion in 2024-25, making the regional bloc one of India’s most critical economic partners. He added that cumulative Indian foreign investment into the region has reached nearly USD 30 billion over the past 20 years.
The region attracts about USD 200 billion in annual foreign direct investment, making it one of the most vibrant economic zones globally, he noted.
Beyond traditional trade, the diplomat urged Indian businesses to closely track the “ASEAN Vision 2045” and the proposed Digital Economic Framework Agreement (DEFA). The DEFA, currently in the final stages of negotiation, aims to create an integrated digital marketplace by facilitating cross-border data flows and interoperable digital payments.
“ASEAN is not a short-term opportunity; it is a long-term strategy for India,” Gotru said, identifying manufacturing, pharmaceuticals, information technology, renewable energy and logistics as key sectors for Indian companies.
Noting a shift in global supply chains, with several companies relocating production to Southeast Asia for better market access and a more predictable business environment, he said Indian firms should leverage ASEAN both as a destination market and a gateway to global value chains. PTI BSM NN
This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.