·PIB·15 marks·250–350 words

The AITIGA review is aimed at correcting trade asymmetries. Examine India's concerns and the reforms it should seek.

In this answer
  1. India's concerns
  2. Reforms India should seek

The ASEAN-India Trade in Goods Agreement (AITIGA), in force since 2010, was placed under review in September 2022 to make it "more trade-facilitative and mutually beneficial" [1]. With bilateral trade at about USD 128 billion in 2025-26 [1], India's push at the 14th East Asia Summit Economic Ministers' Meeting and 23rd AEM-India Consultation in Manila [2] reflects concerns that are structural, not merely tariff-related.

India's concerns

  • Coverage asymmetry: AITIGA liberalises goods only, where ASEAN manufacturing is competitive, while services and investment sit in separate, later agreements — leaving India's strength outside the same bargain. Newer pacts show the contrast: the India-UK CETA and India-Oman CEPA (2025) combine goods, services and professional mobility in one package [3].
  • Rules of origin circumvention: inadequate value-addition tests allow third-country goods minimally processed in ASEAN to enter India duty-free. A standing Sub-Committee on Rules of Origin met again alongside the 13th Joint Committee in July 2026 [1].
  • Non-tariff barriers: SPS measures, standards and customs procedures stall shipments even at zero duty — five of the eight sub-committees address such issues [1].
  • Negotiating drift: thirteen Joint Committee rounds since 2022, yet AITIGA remains under "active negotiations" while UAE, Australia, EFTA, UK and Oman deals were concluded [3].

Reforms India should seek

  • Single-undertaking approach: read the goods review together with the services agreement, so ASEAN market access is traded against Indian services and Mode-4 commitments, on the CETA-Oman template [3].
  • Stricter origin rules with meaningful regional value content and verification provisions.
  • Trade facilitation: mutual recognition of standards and testing, supported domestically by Niryat Disha under the Export Promotion Mission (₹25,060 crore) for MSME certification and compliance [3].
  • A time-bound conclusion of the review, converting eight open sub-committees into a dated work plan.

A calibrated, comprehensive AITIGA would align the Act East Policy with India's export diversification drive, making the partnership genuinely balanced and durable.

Sources

  1. 1PIB, "India Hosts 13th ASEAN-India Trade in Goods Agreement Joint Committee Meeting" (July 2026)Sep 2022 review mandate, 8 sub-committees, SC-ROO meeting, USD 128 bn trade in 2025-26
  2. 2ASEAN Secretariat, "Joint Media Statement of the Fourteenth EAS Economic Ministers' Meeting" (Manila, Sep 2026)Manila meetings and India's participation
  3. 3PIB Backgrounder, "Crafted in India, Delivered Globally: Exports Powered by Trade Agreements" (18 Dec 2025)India-UK CETA and India-Oman CEPA coverage, concluded vs active negotiations, Export Promotion Mission and Niryat Disha

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