Why in news
- India participated in the 14th East Asia Summit Economic Ministers' Meeting and 23rd ASEAN-India Economic Ministers Consultation in Manila, Philippines.
Key terms
AITIGA
The trade in goods agreement signed between India and ASEAN member countries in 2009.
East Asia Summit (EAS)
A premier Indo-Pacific forum of 18 countries focusing on strategic, political, and economic challenges.
Non-Tariff Barriers
Trade restrictions such as quotas, sanctions, or technical regulations that are not direct customs duties.
Act East Policy
India's diplomatic effort to promote economic, strategic, and cultural relations with the Asia-Pacific region.
What is the AITIGA?
- The ASEAN-India Trade in Goods Agreement (AITIGA) is a free trade agreement signed in 2009 under the broader ASEAN-India Comprehensive Economic Cooperation Agreement.
- It covers trade in physical goods by reducing or eliminating tariffs on thousands of industrial and agricultural products between India and the 10 ASEAN member states.
Key Agenda and Focus Areas
- Ministers focused on the ongoing review of AITIGA to make it more user-friendly, simple, and trade-facilitative for businesses.
- India emphasized rectifying trade asymmetries, improving market access, and tackling non-tariff barriers to reduce its growing trade deficit with ASEAN.
- The Economic Research Institute for ASEAN and East Asia (ERIA) presented proposals on integrating energy security infrastructure with industrial clusters.
Why it matters
- ASEAN is one of India's largest trading partners, with bilateral trade reaching USD 128.38 billion in FY 2025–26.
- A modernized AITIGA aligns with India's Act East Policy and strengthens resilient regional supply chains.
Prelims facts
- East Asia Summit includes all 10 ASEAN nations along with India, Australia, China, Japan, New Zealand, South Korea, Russia, and the United States.
Mains discussion
- Examine the key factors driving the need to review the ASEAN-India Trade in Goods Agreement (AITIGA) to address trade imbalances.
Source: PIB Press Release
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