Latest news with #ASEAN-IndiaTradeinGoodsAgreement
Time of India
15-07-2025
- Business
- Time of India
India's FTA gap: New Delhi has trade deficit with 5 partners; Asean deal under review
India has a merchandise trade deficit with five of the seven countries and blocs it has signed free trade agreements (FTAs) with, ever since those deals came into effect, as per an analysis by ET . Together, these partners made up nearly 37% of India's overall trade deficit in FY25. Since 2021, India has entered FTAs with Mauritius, the UAE, the European Free Trade Association (EFTA), and Australia. While the deficit with the UAE has widened since 2022, the trade gap with Australia has narrowed. The agreement with the four-member EFTA is due to take effect in October, and India's deficit with the bloc declined in FY25 from the previous year. With Mauritius, India maintains a small surplus. In contrast, FTAs signed in the 2000s have generally seen India's trade deficit continue to rise, except in the case of the South Asian Free Trade Area (Safta), where India enjoys a surplus. The trade shortfall with the 10-member ASEAN bloc, for instance, jumped to $45.2 billion in FY25 from $25.8 billion in FY22 and $21.8 billion in FY19. Deficits with Japan and South Korea have also increased. A government official said India's newer trade agreements are seeing better utilisation than older ones, with continued efforts to keep trade balanced. 'A review of the trade pacts with Asean and Korea is underway,' said another official, adding, 'However, the Asean is stonewalling the review and we are trying to assess why the utilisation of the deal is low.' The ASEAN-India Trade in Goods Agreement was implemented in 2010. In FY25, India's goods exports to the ASEAN bloc fell 5.4% year-on-year to $38.96 billion, while imports rose 5.6% to $84.16 billion. Though India continues to post a surplus under the 21-year-old Safta agreement, the surplus has declined between FY22 and FY25. Between FY19 and FY25, India's reliance on FTA partners has grown. Imports from all FTA countries and blocs rose during this period, while export growth was limited to a few. Currently, these partners account for 28.1% of India's exports and 29% of its imports. According to an analysis by the commerce and industry ministry, the number of preferential certificates of origin issued under India's FTAs with the UAE and Australia increased by 24.7% and 19% respectively last year. The analysis is significant as utilisation rates under trade agreements with Korea, Japan, and ASEAN remain low, ranging between 4% and 25% across several products. Preferential certificates of origin allow exporters to avail tariff concessions offered under free trade agreements. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Malaysia Sun
15-07-2025
- Business
- Malaysia Sun
MoS Margherita emphasises need for early completion of review of ASEAN-India Trade in Goods Agreement
New Delhi [India], July 14 (ANI): Minister of State for External Affairs Pabitra Margherita, during his recent Malaysia visit, emphasised the need for early completion of the review of ASEAN-India Trade in Goods Agreement (AITIGA) and underlined development partnerships in digital, maritime, health and innovation, as per a statement from the MEA. Minister Pabitra Margherita led the delegation at the ASEAN-India Foreign Ministers' Meeting (AIFMM), 15th East Asia Summit Foreign Ministers' Meeting (EAS FMM) and 32nd ASEAN Regional Forum on July 10-11, 2025 in Kuala Lumpur, Malaysia. In his remarks at the AIFMM on July 10, MoS Margherita extended India's continued support to Malaysia's chairmanship of ASEAN and reiterated India's support for ASEAN unity and centrality. Further, MoS Margherita appreciated progress in the implementation of the 10 Point proposal of Prime Minister Narendra Modi, announced at the 21st ASEAN-India Summit in Lao PDR in 2024 to further strengthen the ASEAN-India Comprehensive Strategic Partnership and shared the initiatives taken this year under the India -ASEAN Year of Tourism. 'He emphasised the need for early completion of the review of ASEAN-India Trade in Goods Agreement (AITIGA) and underlined development partnerships in digital, maritime, health and innovation,' Ministry of External Affairs said in the statement Monday. At the 15th EAS FMM on July 11, 2025, MoS Margherita underlined India's contribution towards strengthening the Leaders-led EAS platform as the EAS mechanism completes 20 years and exchanged views on the current regional and international developments. Preparations for the upcoming 20th EAS Summit, scheduled in October 2025, were also discussed. At the ASEAN Regional Forum (ARF) held on July 11, MoS Margherita participated in a constructive exchange of views on pressing international and regional developments, and deliberated on the future trajectory of the ARF process. He underscored India's deep concerns over the persistent threat posed by Pakistan-sponsored cross-border terrorism, particularly in the wake of the horrific terror attack in Pahalgam in the Indian UT of Jammu and Kashmir. The Minister reaffirmed India's resolute commitment to combating terrorism in all its forms and manifestations. He commended the ASEAN-led mechanisms, including the emerging regional security architecture, as an important platform for candid discussions and collective efforts to address the challenges in the region. Minister Margherita also held bilateral meetings with the Secretary General of ASEAN and the Foreign Ministers of Cambodia, the Philippines, and Timor Leste, on the sidelines of the ASEAN-related meetings. (ANI)
India Gazette
14-07-2025
- Business
- India Gazette
MoS Margherita emphasises need for early completion of review of ASEAN-India Trade in Goods Agreement
New Delhi [India], July 14 (ANI): Minister of State for External Affairs Pabitra Margherita, during his recent Malaysia visit, emphasised the need for early completion of the review of ASEAN-India Trade in Goods Agreement (AITIGA) and underlined development partnerships in digital, maritime, health and innovation, as per a statement from the MEA. Minister Pabitra Margherita led the delegation at the ASEAN-India Foreign Ministers' Meeting (AIFMM), 15th East Asia Summit Foreign Ministers' Meeting (EAS FMM) and 32nd ASEAN Regional Forum on July 10-11, 2025 in Kuala Lumpur, Malaysia. In his remarks at the AIFMM on July 10, MoS Margherita extended India's continued support to Malaysia's chairmanship of ASEAN and reiterated India's support for ASEAN unity and centrality. Further, MoS Margherita appreciated progress in the implementation of the 10 Point proposal of Prime Minister Narendra Modi, announced at the 21st ASEAN-India Summit in Lao PDR in 2024 to further strengthen the ASEAN-India Comprehensive Strategic Partnership and shared the initiatives taken this year under the India -ASEAN Year of Tourism. 'He emphasised the need for early completion of the review of ASEAN-India Trade in Goods Agreement (AITIGA) and underlined development partnerships in digital, maritime, health and innovation,' Ministry of External Affairs said in the statement Monday. At the 15th EAS FMM on July 11, 2025, MoS Margherita underlined India's contribution towards strengthening the Leaders-led EAS platform as the EAS mechanism completes 20 years and exchanged views on the current regional and international developments. Preparations for the upcoming 20th EAS Summit, scheduled in October 2025, were also discussed. At the ASEAN Regional Forum (ARF) held on July 11, MoS Margherita participated in a constructive exchange of views on pressing international and regional developments, and deliberated on the future trajectory of the ARF process. He underscored India's deep concerns over the persistent threat posed by Pakistan-sponsored cross-border terrorism, particularly in the wake of the horrific terror attack in Pahalgam in the Indian UT of Jammu and Kashmir. The Minister reaffirmed India's resolute commitment to combating terrorism in all its forms and manifestations. He commended the ASEAN-led mechanisms, including the emerging regional security architecture, as an important platform for candid discussions and collective efforts to address the challenges in the region. Minister Margherita also held bilateral meetings with the Secretary General of ASEAN and the Foreign Ministers of Cambodia, the Philippines, and Timor Leste, on the sidelines of the ASEAN-related meetings. (ANI)
Time of India
23-06-2025
- Business
- Time of India
ASEAN stonewalling FTA review, 9 rounds done: Official
The 10-member ASEAN has stonewalled the review of its free trade pact with India, a critical demand of New Delhi as it seeks to balance its trade with the bloc. The ASEAN-India Trade in Goods Agreement (AITIGA), came into effect in 2010, is currently under review. India has been demanding a review of the pact to eliminate barriers and its misuse. The review is aimed to be completed this year. 'Diplomatically, the relations are very good but why should our industry suffer? It's the anguish of the Indian industry as nine rounds have happened and the Asean have stonewalled the progress,' said an official. Last week, commerce and industry minister Piyush Goyal slammed the ASEAN describing several countries in the region as a 'B team of China' and the trade pact with the bloc 'silly'. Asean, or the Association of Southeast Asian Nations, comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. India's goods exports to the ASEAN shrank 5.4% on-year in FY25 to $38.96 billion while rose 5.6% to $84.16 billion. 'India's exports have doubled but imports trebled since the pact. There is a whopping 26 times increase in imports,' said an official. The AITIGA is being reviewed as India seeks to eliminate barriers and misuse of the trade pact. Concerns have also been raised about routing of goods to India from third countries especially China through Asean members by taking the duty advantages of the agreement. India had opened 71% of tariff lines while Indonesia opened only 41%, Vietnam 66.5%, and Thailand opened 67%, said another official. As per the official, subsidised goods from a third country were found to be dumped until India levied anti-dumping duty. Similarly, India cracked down on dumping of steel imports via Safeguard duty as the melt-and-pour clause was not a part of the AITIGA.
The Hindu
23-06-2025
- Business
- The Hindu
No headway in India-ASEAN trade deal review despite 9 meetings in last one year
Over the last one year, officials of the government of India have held nine meetings with officials from the Association of Southeast Asian Nations (ASEAN) to review the trade agreement signed with the grouping, but no progress has been made on any item, according to sources. 'After a lot of pressure from the government of India, they agreed for a review of the ASEAN-India Trade in Goods Agreement (AITIGA),' a source said. 'Yet, after even nine rounds of review, they have not accepted terms on even one item.' Under the original agreement, signed in 2009, India opened 71% of its tariff lines to the ASEAN countries whereas countries like Indonesia opened 41%, Vietnam 66.5%, and Thailand 67%, the source explained. 'In the last 15 years, our exports to ASEAN have doubled, but our imports have tripled,' they said. 'These factors necessitated a review of the deal but we are being stonewalled.' The review by a joint committee began in February 2024. India had found through its investigations that there are countries in the ASEAN grouping that were receiving highly subsidised raw materials from China, processing them, and then exporting them to India, the source said. 'When we (the current government) saw this was happening, we imposed an anti-dumping duty on the originating country as well,' the source said. The trade deal with ASEAN also allowed the dumping of steel in India, they added.
