India Reaffirms ASEAN as Cornerstone of Act East Policy, Pushes for Faster Trade Pact Review

KUALA LUMPUR, Sept 26 (VoM): India has reaffirmed that ASEAN remains central to its Act East policy and Indo-Pacific vision, while voicing concern over the slow progress of the ASEAN-India Trade in Goods Agreement (AITIGA) review.

Speaking at the 22nd ASEAN Economic Ministers (AEM)-India Consultation today, India’s Minister of State for Commerce and Industry, Jitin Prasada, underscored the synergy between the ASEAN Outlook on the Indo-Pacific and India’s Indo-Pacific Oceans Initiative, saying it offers a positive pathway for regional cooperation.

Prasada highlighted that India has fully implemented the ASEAN-India Plan of Action 2021–2025 with strong support from ASEAN partners. He also noted that a new Plan of Action for 2026–2030 has been adopted to deepen cooperation further.

However, he cautioned that the review of AITIGA remains limited despite repeated follow-ups by both sides.
“Progress in the AITIGA review has not been satisfactory, and this needs urgent attention,” he said.

India remains a major trading partner of ASEAN, with total trade rising to US$106.83 billion in 2024, compared with US$100.72 billion in 2023. Yet, foreign direct investment from India into ASEAN dropped nearly 35 percent in 2024, falling to US$3.31 billion from US$5.09 billion a year earlier.

India also extended congratulations to Malaysia on its 2025 ASEAN chairmanship and welcomed the upcoming admission of Timor-Leste as ASEAN’s 11th member in October 2025.

Meanwhile, Malaysia’s Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, who chaired the consultation, said the ASEAN-India meeting was timely given the shifting global trade landscape.

“Closer ASEAN-India economic integration can act as a stable anchor for growth and resilience amid global uncertainties,” Tengku Zafrul said.

He stressed that the AITIGA review is a strategic opportunity to modernize and upgrade the ASEAN-India partnership.
“Our leaders have mandated us to expedite the review and substantially conclude it by 2025,” he said.

ASEAN has reportedly offered a new package of goods under the AITIGA framework to address trade imbalances and accelerate the review, following concerns over India’s widening trade deficit with the bloc.

@voice of Malaysia news