·PIB·15 marks·250–350 wordsEconomyIR

Examine India's approach to regional trade agreements in the backdrop of its non-participation in RCEP, with reference to AITIGA.

In this answer
  1. Why India stepped back from RCEP
  2. The shift visible in AITIGA
  3. The costs of this approach

India's exit from RCEP at the 2019 Bangkok Summit — on grounds that the pact did not address its outstanding concerns [1] — marked a shift from broad plurilateral integration to calibrated, sector-sensitive bargaining. The ongoing review of the ASEAN-India Trade in Goods Agreement (AITIGA, 2009) is the clearest test of this recalibrated approach.

Why India stepped back from RCEP

  • Fear of an import surge, especially from China, absent an automatic trigger safeguard mechanism [1].
  • Adverse experience with existing FTAs where the trade deficit widened; demand to shift the tariff base year forward was not conceded [1].
  • Sensitivity of agriculture, dairy and MSMEs to deep, near-universal tariff elimination.

The shift visible in AITIGA

  • Instead of a new mega-deal, India chose to modernise an existing one: the AITIGA review was launched in September 2022 to make the pact more trade-facilitative [2].
  • Focus is on non-tariff issues rather than fresh tariff concessions — of the eight Sub-Committees, the ones convened at the 13th Joint Committee (New Delhi, 6–10 July 2026) were on Rules of Origin, Customs Procedures and Market Access [3].
  • Rules of origin tightening is central, to stop third-country goods entering duty-free through ASEAN — the precise leakage RCEP would have magnified.
  • The stakes are real: ASEAN accounts for about 11% of India's global trade, with bilateral trade near USD 128 billion in 2025-26 [3].

The costs of this approach

  • Slow progress: the review has run through thirteen Joint Committee rounds, overshooting the 2025 conclusion target [3][4].
  • Staying outside RCEP keeps India at the margins of regional value chains even as it deepens ties bilaterally.

India's model is therefore not protectionism but selective, defensively-hedged engagement — depth over breadth. Concluding the AITIGA review within a time-bound calendar, paired with domestic competitiveness reform, would let India secure ASEAN market access on balanced terms and give credible content to the Act East Policy.

Sources

  1. 1India's on-Going Trade Negotiations, PIB, Ministry of Commerce & IndustryIndia's non-joining of RCEP at the 2019 Bangkok Summit, unresolved concerns, safeguard mechanism and base-year demands
  2. 23rd Meeting of ASEAN-India Trade in Goods Agreement (AITIGA) Joint Committee, PIBAITIGA signed 2009; review launched September 2022 to make it trade-facilitative
  3. 3India Hosts 13th ASEAN-India Trade in Goods Agreement Joint Committee Meeting, PIB13th JC meeting dates, three Sub-Committees convened, ASEAN's 11% share and USD 128 billion trade, direction to expedite outstanding chapters
  4. 4India hosts 8th Meeting of Joint Committee on AITIGA, PIBmulti-round negotiation timeline and slippage of the review schedule

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