India has established strict timelines for various sub-committees to finalise pending chapters under the AITIGA review process. According to the Commerce Ministry, the 13th ASEAN-India Trade in Goods Agreement (AITIGA) Joint Committee meeting from July 6-10 has set these timelines to achieve tangible outcomes within agreed deadlines. The committee provided strategic guidance to Sub-Committees working on market access, national treatment, rules of origin, customs procedures and trade facilitation, urging them to expedite the finalisation of outstanding chapters. As per the Commerce Ministry, meetings of three of the eight sub-committees are being held on the sidelines of the ongoing meeting, including those on customs procedures and trade facilitation, national treatment and market access, and rules of origin.
India's growing concern over its widening merchandise trade deficit with the ASEAN bloc has accelerated the review process. According to the Commerce Ministry, India's trade deficit with ASEAN has widened to more than $50 billion in 2025 from a little over $5 billion in 2009, the year before the FTA came into effect. Bilateral trade between India and ASEAN reached $121 billion in the last calendar year, with India's imports accounting for about $87 billion. Since the agreement was implemented, India's imports from ASEAN have nearly quadrupled, while its exports have not even doubled over the past 16 years. However, experts attribute the widening deficit to lower tariff reduction commitments by some member countries, such as Thailand and Vietnam, as well as poor utilisation of the agreement by Indian exporters.
Among the most closely watched chapters is Rules of Origin (RoO), which determines whether goods qualify for preferential tariffs under the agreement. According to the Commerce Department, India has been pushing for tighter origin norms, stronger verification mechanisms and greater transparency to prevent misuse of tariff concessions. These RoO negotiations have acquired greater strategic significance amid concerns that Chinese goods are finding their way into the Indian market through ASEAN countries while availing preferential tariff benefits under the agreement. The committee has emphasised the need for faster review processes to accelerate the deepening of ASEAN trade cooperation.
India and the 10-member ASEAN bloc agreed in 2023 to hold quarterly negotiations to review the trade agreement, with a target of increasing bilateral trade to $200 billion by 2025. However, bilateral trade has not reached this target, standing at around $121 billion in the last calendar year. The committee's focus on time-bound deliverables indicates a structured approach to moving the trade agreement forward, with India seeking greater market access into the ASEAN market to increase exports and reduce the trade deficit while the ASEAN seeks lower import duties for some of its products. As noted by the Commerce Ministry, delegations from all ASEAN member states—Brunei, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam—participated in the latest meeting.
