India at 14th EAS-EMM Manila 2026: AITIGA Review & ASEAN Trade

Why in News

India participated in two high-level trade diplomacy forums in Manila, Philippines in September 2026: the 14th East Asia Summit Economic Ministers' Meeting (EAS-EMM) on September 21, and the 23rd ASEAN-India Economic Ministers Consultation on September 22–23. The Indian delegation, led by Additional Secretary Shri Nitin Kumar Yadav of the Department of Commerce, engaged on regional economic priorities, the ongoing mid-term review of the ASEAN-India Trade in Goods Agreement (AITIGA), and India-ASEAN bilateral trade which reached USD 128.38 billion in 2025–26.

Background

ASEAN (Association of Southeast Asian Nations) was founded on August 8, 1967, through the Bangkok Declaration. Its 10 members are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. Timor-Leste gained observer status and is on its accession path.

The East Asia Summit (EAS) is a premier strategic forum of 18 countries — the 10 ASEAN members plus India, Australia, China, Japan, New Zealand, Republic of Korea, Russia, and the United States. India has been an EAS member since its first summit in 2005. The EAS-EMM is the economic ministerial track of the EAS framework.

India's engagement with ASEAN is anchored in the Act East Policy (upgraded from Look East Policy in 2014) which prioritises deeper connectivity, trade, and strategic partnerships with Southeast and East Asia.

Current Developments

14th EAS-EMM, September 21, 2026

The 14th EAS-EMM was chaired by Philippine Trade Secretary Ma. Cristina A. Roque. Economic ministers or their representatives from all 11 EAS non-ASEAN partners (India, Australia, China, Japan, New Zealand, Republic of Korea, Russia, the United States, plus ASEAN members) participated. Key outcomes:

Exchange of perspectives on regional and global economic developments and trade-investment outlooks for 2027.
Discussion on supply chain resilience, digital economy standards, and climate-related trade measures.
The ASEAN Secretariat briefed on the economic outlook and implications for regional trade flows.

23rd ASEAN-India Economic Ministers Consultation

The 23rd consultation focused centrally on the mid-term review of AITIGA (ASEAN-India Trade in Goods Agreement). AITIGA has been in force since 2010 but has faced criticism from Indian industry for a persistent trade deficit in India's disfavour. The review aims to:

Enhance trade facilitation and reduce customs-related delays.
Address non-tariff barriers (NTBs) — technical standards, sanitary and phytosanitary (SPS) measures, and licensing restrictions that impede market access.
Promote balanced trade flows by improving India's export basket competitiveness in ASEAN markets.
Update Rules of Origin provisions to prevent third-country goods (particularly from China) from being routed through ASEAN to enter India at preferential tariff rates.

Sideline Engagements

On September 22, the Indian delegation met Indian businesses operating in the Philippines to discuss export challenges.
On September 23, India participated in the ASEAN-India Business Forum 2026.

India-ASEAN Trade Figures

Year	India-ASEAN Trade (USD billion)
2021–22	98.4
2022–23	131.6
2023–24	121.8
2024–25	124.7
2025–26	128.38

Key Facts

ASEAN founded: August 8, 1967 (Bangkok Declaration); 10 members.
EAS members: 18 countries (10 ASEAN + India, Australia, China, Japan, South Korea, New Zealand, Russia, USA).
India joined EAS: 2005 (first summit, Kuala Lumpur).
AITIGA in force since: January 1, 2010.
India-ASEAN trade 2025–26: USD 128.38 billion.
ASEAN is India's 4th largest trading partner (after USA, China, UAE).
India's Act East Policy launched: 2014 (renamed from Look East Policy, 1991).
14th EAS-EMM chaired by: Philippines (2026 ASEAN Chair).
India delegation led by: Additional Secretary, Department of Commerce, Nitin Kumar Yadav.

Constitutional Provisions

Article 246 read with Entry 14, Union List — Foreign trade; Parliament's exclusive domain.
Article 253 — Parliament's power to make laws implementing international treaties and agreements; basis for AITIGA's domestic legal effect.
Article 73 — Executive power of the Union extends to all matters on which Parliament can legislate, including foreign trade and treaty-making.

Legal Framework

ASEAN-India Trade in Goods Agreement (AITIGA), 2010 — Governs tariff preferences, Rules of Origin, Safeguard provisions, and dispute settlement for goods trade between India and ASEAN.
ASEAN-India Framework Agreement on Comprehensive Economic Cooperation, 2003 — Umbrella agreement establishing the comprehensive economic partnership architecture.
Customs Tariff Act, 1975 — India's domestic legal vehicle for implementing preferential tariff schedules under AITIGA.
Foreign Trade (Development and Regulation) Act, 1992 — Governs India's trade policy and export-import licensing; administered by DGFT (Directorate General of Foreign Trade).

Institutional Framework

ASEAN Secretariat (Jakarta) — Coordinates ASEAN's institutional work; provides secretariat support for EAS processes.
Department of Commerce, Ministry of Commerce and Industry — India's nodal body for FTA negotiations and trade policy.
DGFT (Directorate General of Foreign Trade) — Implements India's trade policies; administers import/export licensing.
ASEAN-India Centre (AIC), RIS, New Delhi — Think-tank and knowledge centre fostering ASEAN-India economic and cultural ties.
ASEAN-India Business Council (AIBC) — Private-sector dialogue platform.

Economic Dimensions

ASEAN is India's fourth-largest trading partner, with two-way trade of USD 128.38 billion in 2025–26. However, India runs a persistent trade deficit with ASEAN, estimated at around USD 40–45 billion annually, largely driven by imports from Vietnam, Malaysia, and Indonesia (electronics, palm oil, rubber). The AITIGA mid-term review is India's key instrument to rebalance this trade relationship.

Key economic angles:

Supply chain integration: India-ASEAN supply chains are deepening in electronics (Apple's iPhone assembly in Tamil Nadu and Karnataka feeds into ASEAN logistics), textiles, and pharma.
Digital economy: India's Unified Payments Interface (UPI) is being integrated with Singapore's PayNow and other ASEAN real-time payment systems, creating fintech trade linkages.
Rules of Origin reform: Tightening Rules of Origin thresholds to prevent Chinese goods routed via ASEAN from availing AITIGA preferential rates — a key Indian demand.

Banking and financial angle: Stronger India-ASEAN trade flows increase demand for trade finance products from Indian banks (SBI, Bank of Baroda) with ASEAN operations. India's participation in ASEAN's Regional Comprehensive Economic Partnership (RCEP) remains paused since India withdrew in 2019.

International Relations

India's engagement with ASEAN and EAS serves multiple strategic objectives:

Act East Policy: Economic integration with ASEAN is the operational core of India's Act East strategy, complementing connectivity projects (ASEAN-India Connectivity Summit, India-Myanmar-Thailand Trilateral Highway) and defence cooperation.
Indo-Pacific architecture: EAS is the premier multilateral forum for the Indo-Pacific's economic governance; India's active participation signals strategic commitment to a rules-based Indo-Pacific order.
Counterbalancing China: Deeper India-ASEAN economic linkages offer ASEAN states supply-chain diversification options beyond China — aligned with both India's and ASEAN's strategic interests.
RCEP context: India's 2019 withdrawal from RCEP means bilateral and sub-regional engagements (like AITIGA review) become more critical for India's Southeast Asian trade architecture.

Challenges

Persistent and widening India-ASEAN trade deficit (India imports significantly more than it exports).
Rules of Origin exploitation — third-country (especially Chinese) goods entering India via ASEAN at preferential tariffs.
Non-tariff barriers (NTBs) limiting Indian pharma, agri-products, and services exports to ASEAN markets.
India's non-membership of RCEP limits its ability to shape the dominant regional trade framework.
Connectivity gaps — the India-Myanmar-Thailand highway remains incomplete; maritime connectivity is sub-optimal.

Government Initiatives

Act East Policy (2014) — Prioritises ASEAN and East Asia for trade, investment, and strategic partnerships.
ASEAN-India Connectivity Summit — Annual platform for physical, digital, and people-to-people connectivity.
UPI-PayNow Linkage (India-Singapore) — Live since 2023; being extended to other ASEAN economies.
India-ASEAN Science and Technology Development Fund — Supports collaborative R&D.
India-Myanmar-Thailand Trilateral Highway and the Kaladan Multi-Modal Transit Transport Project for Northeast India connectivity.

Way Forward

The NITI Aayog and the Ministry of Commerce have recommended concluding the AITIGA review with strengthened Rules of Origin, improved services and investment chapters, and digital trade provisions. The Parliamentary Standing Committee on Commerce has urged the government to address the ASEAN trade deficit by promoting India's pharmaceutical, IT services, and engineering exports through targeted export promotion programmes. India should also consider re-engaging with RCEP on its own terms — potentially securing carve-outs for sensitive agriculture and services sectors — to avoid being sidelined from the world's largest trade bloc.

Possible Mains Questions

"India's trade deficit with ASEAN is a structural challenge that the AITIGA mid-term review alone cannot resolve. Critically analyse the factors behind this deficit and suggest a comprehensive strategy." (GS-II, 250 words)
How does India's Act East Policy translate into concrete economic and strategic outcomes in its engagement with ASEAN and EAS? Illustrate with recent examples. (GS-II, 150 words)

FAQ

What is the East Asia Summit (EAS)?: EAS is an Indo-Pacific strategic forum of 18 countries (10 ASEAN + India, Australia, China, Japan, South Korea, New Zealand, Russia, USA), convened annually at the level of Heads of State/Government. India has been a founding participant since 2005. The EAS-EMM is its economic ministerial track.
What is AITIGA and why is India reviewing it?: AITIGA (ASEAN-India Trade in Goods Agreement) has been in force since 2010. India is seeking a mid-term review to tighten Rules of Origin (to prevent Chinese goods routing through ASEAN), reduce non-tariff barriers on Indian exports, and rebalance a trade deficit that has persisted since the agreement's inception.
Why did India withdraw from RCEP in 2019?: India withdrew from the Regional Comprehensive Economic Partnership (RCEP) citing unresolved concerns on Rules of Origin (risk of Chinese goods flooding India via ASEAN), inadequate market access for Indian services and skilled professionals, and potential damage to India's dairy, agricultural, and manufacturing sectors from tariff elimination with China and other RCEP members.

India at 14th EAS Economic Ministers' Meeting and 23rd ASEAN-India Consultation, Manila: AITIGA Mid-Term Review and USD 128 Billion Trade

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