Institute of Strategic & International Studies (ISIS) Malaysia analyst Jaideep Singh said the year-end target was realistic as ASEAN and India had already held at least nine rounds of negotiations.

He said both sides were responding positively to the need to review and upgrade the 15-year-old agreement to ensure it reflected the latest developments in trade, including greater provisions for digital and paperless trade, and more streamlined trade facilitation procedures.

“The review is a chance to update tariff schedules, modernise rules of origin, enhance digital trade facilitation and promote mutual recognition of qualifications.

“It is also important for the updated AITIGA to contain provisions to address non-tariff barriers and improve free trade agreement utilisation among small and medium-sized enterprises.

“A balanced conclusion, even if slower than expected but still within the 2025 deadline, would signal that both ASEAN and India remain committed to open, rules-based regional trade,” he told Bernama.

Semiconductors to bridge ASEAN-India ties

Jaideep said the semiconductor industry offered the clearest path to strategic complementarity for ASEAN.

He said many ASEAN nations were already critical nodes in assembly, testing and packaging, while India was rapidly emerging as a centre for electronics manufacturing and design, on top of its strengths in software and its large pool of engineers.

“Malaysia has recently announced plans to finalise a memorandum of cooperation on semiconductors with India, following Singapore’s memorandum of understanding (MoU) with India on semiconductor cooperation signed last year,” he said.

The most recent MoU, reported in October 2025, saw the Advanced Semiconductor Academy of Malaysia (ASEM) and the Indian Institute of Technology Madras (India) forge a strategic partnership to strengthen Malaysia’s global positioning and resilience in the semiconductor value chain.

According to ASEM, the partnership will secure a strategic foothold in India’s rapidly growing US$100 billion (US$1 = RM4.18) semiconductor market, paving the way for new investments, joint ventures and co-development opportunities that will enhance Malaysia’s competitiveness as a design-led economy.

Jaideep said that by using these collaborations as a model, similar initiatives, beginning bilaterally and potentially expanding multilaterally, could connect Southeast Asian and Indian firms along the semiconductor value chain, bringing together talent and investment under the recent ASEAN framework for an integrated semiconductor supply chain.

Broader regional cooperation

Another ISIS Malaysia analyst, Dr Yanitha Meena Louis, said India’s Act East Policy and the ASEAN-India comprehensive strategic partnership (CSP) provided a strong framework not only for trade and industrial cooperation but also for broader regional initiatives such as maritime security, disaster relief and the blue economy.

Moving forward, she said the CSP must underline synergies between Indian-led initiatives such as the International Solar Alliance, the Coalition for Disaster Resilient Infrastructure (CDRI), the Global Biofuel Alliance, and ASEAN’s long-term goals and priorities, especially within the Community Vision 2045.

“India has declared itself as a first responder to the region, which is commendable considering its consistent efforts at extending support during disasters.

“India is also strategically placed to tap its CDRI framework to focus on disaster relief cooperation and utilise its prominent position in the Indian Ocean Rim Association to advance efforts to build the blue economy collectively with its ASEAN partners through ASEAN–Indian Ocean Rim Association cooperation,” she said.

The combination of trade liberalisation through AITIGA, high-value semiconductor cooperation and India’s broader regional initiatives positions ASEAN and India to deepen economic ties and lay the foundation for the next phase of their partnership.

-- BERNAMA