ASEAN-India Summit Pivotal To Breaking AITIGA Logjam

24/10/2025 11:07 AM

By Zufazlin Baharuddin

KUALA LUMPUR, Oct 24 (Bernama) -- The ASEAN-India Summit to be held in conjunction with the 47th ASEAN Summit could be pivotal in breaking the logjam over the long-pending review of the ASEAN-India Trade in Goods Agreement (AITIGA).

SPI Asset Management managing partner Stephen Innes said that high-level engagement at the summit might inject political urgency and accountability into the process.

“Leaders’ public commitments often drive negotiators to deliver,” he said.

Innes said that India has been frustrated by slow progress, citing persistent trade imbalances and non-tariff barriers, while ASEAN hopes to close the review this year.

“If the summit sets a clear roadmap and reframes the talks as a modernisation effort rather than a technical exercise, it could finally turn years of stalled discussions into tangible outcomes for both sides,” he told Bernama today.

Innes added that, beyond tariffs, India wants the review to reflect new realities in digital trade, supply chain resilience, and manufacturing cooperation.

AITIGA aims to achieve free flow of goods between ASEAN nations and India, which can result in fewer trade barriers and deeper economic linkages, lower business costs, increased trade and a larger market, as well as achieving economies of scale for businesses.

The 22nd ASEAN-India Summit will take place on Oct 26, alongside the 47th ASEAN Summit hosted by Malaysia from Oct 26 to 28 at the Kuala Lumpur Convention Centre.

ISIS Malaysia analyst Dr Yanitha Meena Louis said the review of AITIGA has been on the cards and in the works for a long time now.

“There is ambition and appetite for greater alignment, but this will require political will on both sides. Reciprocity and goodwill that govern ties will be key to any perceived deadlock in the AITIGA review.

“The AITIGA review should not be a key definer of the state of ties. Instead, it should also be about exploring ASEAN’s ability and openness to cooperating within Indian-led initiatives like the International Solar Alliance, Coalition for Disaster Resilient Infrastructure and the Global Biofuel Alliance,” she said.

In July 2025, India’s High Commissioner to Malaysia, B N Reddy, said the ongoing review of the AITIGA, which began in 2023 and is expected to conclude by year-end, further enhances regional trade and investment, particularly in the digital economy.

While Indian Prime Minister Narendra Modi will attend the 47th ASEAN Summit virtually, Innes said the country will still gain considerable strategic and diplomatic value from his participation.

“His presence signals continuity in India’s Act East Policy and reinforces its commitment to ASEAN as a cornerstone of Indo-Pacific stability.

“The virtual format still allows India to shape the discussion on trade, connectivity and regional security — key pillars that support its ambition to become a major economic and strategic partner for Southeast Asia,” he said.

Yanitha also opined that his virtual participation will provide a platform for India to share a targeted plan for cooperation similar to the 12-point plan introduced in 2023 in Indonesia and the 10-point plan introduced in 2024 in Laos.

“Aligning with the ASEAN Community vision 2045, India will have the opportunity to introduce initiatives that are in line with their Global South mobilisation efforts and the key tenets of the Act East Policy, which is entering its second decade,” she said.

India became ASEAN’s dialogue partner in 1996, with bilateral trade increasing to US$106.83 billion (US$1 = RM4.22) in 2024, up from US$100.72 billion in 2023. 

However, foreign direct investment from India to ASEAN fell 34.97 per cent to US$3.31 billion in 2024, from US$5.09 billion in 2023.

-- BERNAMA