KUALA LUMPUR: Asean is hoping to conclude the Asean–India Trade in Goods Agreement (AITIGA) review this year, as India expresses concerns over the slow progress of the review.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the AITIGA, which was signed in 2009 and brought into force in 2010 is a key pillar in economic relations between Asean and India.
“This agreement laid the foundation for the significant trade growth that we have witnessed. However, a decade on, the world has changed, and so must our agreement. The ongoing Review of AITIGA is a strategic opportunity to modernise and upgrade our economic partnership for the realities of today and tomorrow,” he said when chairing the Asean Economic Ministers-India Consultation on Friday (Sept 26).
Zafrul reminded that the respective members of the agreement had mandated the review of AITIGA to be concluded in 2025.
“In line with that target, Asean sees the review exercise as a chance to incorporate lessons learned over the past 13 years and to upgrade our agreement with provisions that address current trade practices.”
“It also means aligning the AITIGA with initiatives such as Asean’s economic integration efforts and India’s ‘Act East’ policy, so that our trade agreement complements broader regional supply chain connectivity,” he added.
Zafrul said the global trade landscape is shifting rapidly, presenting both opportunities and challenges.
“In the midst of this strategic rebalancing, closer economic integration between Asean and India can serve as a stable anchor of growth and a vital source of resilience amid global uncertainties. Indeed, we face common challenges, from safeguarding supply chain resilience and food security to navigating technological disruptions,” he said.
By working together, we can transform these challenges into shared opportunities for sustainable and inclusive growth,” he added.
The two-way merchandise trade between Asean and India has surpassed US$100bil (RM422bil) while bilateral trade between the two hit around US$106.93bil (RM451.30bil) in 2024, a significant jump from US$60.17bil (RM253.91bil) in 2015.
Meanwhile, Indian Union Minister of State for Commerce and Industry Jitin Prasada expressed concern over the slow progress of the review in his speech at the same event.
“On the trade front, India remains seriously concerned about the limited progress of the review of the AITIGA,” he said.
Asean and India are neighbours and partners in the global south. Both represent a rapidly growing region in the world. Our aspiration is to achieve a bright future for more than two billion people,” added Prasada.
