India and ASEAN Begin Fresh Talks to Review Trade in Goods Agreement Amid Growing Trade Deficit
India and ASEAN officials are commencing a new round of talks to review the ASEAN-India Trade in Goods Agreement (AITIGA), driven by India's increasing trade deficit with the bloc. The talks gain urgency as India faces new US tariffs. Commerce Minister Piyush Goyal previously criticized the 2009 agreement as "silly" for giving Asian competitors easy market access, leading to speculation about India's withdrawal. However, recent meetings between PM Modi and Malaysian PM Anwar Ibrahim, who chairs the ASEAN Summit this year, have fast-tracked the AITIGA review for completion by year-end. India's trade deficit with ASEAN swelled from $12.9 billion in 2017-18 to $45.2 billion in 2024-25, underscoring the need for a more equitable trade arrangement.
Key Points
- India and ASEAN are reviewing their Trade in Goods Agreement (AITIGA) due to India's widening trade deficit with the bloc.
- The urgency for these talks is heightened by the imposition of new US tariffs on India.
- India's Commerce Minister previously expressed dissatisfaction with the existing AITIGA, calling it disadvantageous.
- Recent high-level diplomatic engagements have accelerated the review process, aiming for completion by year-end.
- The trade deficit for India with ASEAN has significantly increased, from $12.9 billion in 2017-18 to $45.2 billion in 2024-25.
Exam Facts
- ASEAN-India Trade in Goods Agreement (AITIGA) is under review.
- India's trade deficit with ASEAN: $12.9 billion in 2017-18, $45.2 billion in 2024-25.
- ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.
- India walked out of the Regional Comprehensive Economic Partnership (RCEP) in 2019.
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