Geographical proximity and complementary manufacturing capabilities are strengthening ties between India and ASEAN countries. For the Indian economy, this region serves not only as an important market but also as a key source of energy resources, industrial components, and a springboard for entering Asia-Pacific markets, according to Vietnam Times.

Trade Performance Dynamics

In recent years, there has been a substantial increase in mutual trade volumes. The primary instrument facilitating this growth has been the ASEAN-India Trade in Goods Agreement (AITIGA).

Key Trade Indicators

128billion $ — trade turnover in the 2025/26 FY
56billion $ — trade turnover in the 2010/11 FY
38billion $ — India's exports to ASEAN
90billion $ — India's imports from ASEAN

Despite the growth, a trade imbalance persists. Specifically, during the period under review, Indian exports to ASEAN countries increased from $26 billion to $38 billion, while imports rose from $31 billion to $90 billion. To rectify this situation, a revision of the AITIGA agreement is planned, which is expected to simplify trade procedures and expand market access.

Context

Cooperation between India and the Association of Southeast Asian Nations covers not only trade but also investments, technology, transport infrastructure, and regional security.