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ASEAN-India Trade in Goods Agreement (AITIGA) and its review

By CAShorts DeskPublished Updated Source: PIB, Ministry of Commerce & Industry (9 October 2026; 15 August 2025); AITIGA text (2009); Rajya Sabha; Customs public notice

Why in news: The AITIGA Joint Committee met in Jakarta on 6-9 October 2026 and told its sub-committees to set time-bound deliverables on pending chapters, the government said.

ASEAN-India Trade in Goods Agreement (AITIGA) and its review
Illustration (AI-generated)

The ASEAN-India Trade in Goods Agreement (AITIGA), signed in 2009 and in force since 1 January 2010, cut duties on most goods traded between India and ten ASEAN countries. India sought a review, citing asymmetric trade and loose rules of origin. The review's Joint Committee met for the 15th time in Jakarta on 6-9 October 2026.

Syllabus: GS3 · Indian Economy & Growth; Prelims · Current Affairs & IR; GS2 · Groupings & Agreements

In short

The ASEAN-India Trade in Goods Agreement (AITIGA), in force since 2010, cut duties on most India-ASEAN goods trade; India has pressed for its review.

AITIGA from framework toreviewFramework Agreement, 2003Signed in Bangkok, 2009In force since 2010Review terms, 2023Jakarta round, 2026

A review, not withdrawal, suits India: firmer origin rules and fewer non-tariff barriers can rebalance AITIGA while keeping Act East's main trade link.

Why it matters

An Indian factory making chemicals or electronic parts competes at home with imports from Indonesia, Thailand or Viet Nam that pay little or no duty under AITIGA, while Indian exporters report non-tariff barriers in those markets. If goods made largely in a third country can claim ASEAN origin after light processing, Indian producers lose protection India never agreed to give up. The review decides how that balance is reset. The stakes are large: ASEAN accounts for about 11% of India's global trade, and bilateral trade was about US$123 billion in 2024-25, according to the Commerce Ministry. The larger issue is how India uses trade deals: it stayed out of RCEP in 2019, yet its Act East Policy depends on close economic ties with Southeast Asia.

Prelims pointers

  • ASEAN: founded by the Bangkok Declaration of 8 August 1967 (Indonesia, Malaysia, the Philippines, Singapore, Thailand); Secretariat in Jakarta; Timor-Leste joined as the eleventh member in 2025.
  • AITIGA: goods-only FTA under the 2003 Framework Agreement on Comprehensive Economic Cooperation; signed 2009, in force from 1 January 2010.
  • Rules of origin: AITIGA's general rule needs 35% regional value content plus a change in tariff sub-heading; India's CAROTAR, 2020 rests on section 28DA of the Customs Act, 1962.
  • ASEAN's other ASEAN-plus-one free trade agreements are with China, Japan, South Korea, Australia and New Zealand, and Hong Kong.
  • RCEP: signed in November 2020 by the ten ASEAN states, China, Japan, South Korea, Australia and New Zealand; in force from 1 January 2022.
  • India-ASEAN ties: sectoral dialogue partnership from 1992, Comprehensive Strategic Partnership since 2022; the Act East Policy (2014) succeeded the Look East Policy of the early 1990s.
  • ASEAN-India Trade in Services Agreement and Investment Agreement: signed in 2014, in force from 1 July 2015.

Practise a UPSC-style question

With reference to the ASEAN-India Trade in Goods Agreement (AITIGA), consider the following statements:

1. It covers trade in goods, while services and investment are covered by separate ASEAN-India agreements.

2. It was concluded under the ASEAN-India Framework Agreement on Comprehensive Economic Cooperation signed in 2003.

3. It came into force in 2015, a year after India announced its Act East Policy.

Which of the statements given above is/are correct?

  1. (a) 1 and 2 only
  2. (b) 2 and 3 only
  3. (c) 1 and 3 only
  4. (d) 1, 2 and 3
Show the answer

Answer: (a) 1 and 2 only

1 is correct: AITIGA covers goods; the ASEAN-India Trade in Services Agreement and Investment Agreement are separate and came into force in 2015. 2 is correct: AITIGA was negotiated under the 2003 Framework Agreement on Comprehensive Economic Cooperation. 3 is incorrect: AITIGA was signed in 2009 and came into force on 1 January 2010; 2015 is when the services and investment agreements took effect.

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