Union Minister of State for Commerce & Industry and Electronics & Information Technology Jitin Prasada held a bilateral meeting with the Malaysian Deputy Minister of Investment, Trade, and Industry Liew Chin Tong today in New Delhi. The meeting discussed issues pertaining to bilateral trade, market access, collaboration in semiconductors, cooperation in the services sector and issues relating to the Foreign Manufacturers Certification Scheme (FMCS) of the Bureau of Indian Standards (BIS).

The meeting was attended by Indian officials from the Ministries of External Affairs, Commerce & Industry, Electronics & Information Technology (IT) and BIS apart from Malaysian officials from its Ministry of Investment, Trade and Industry. Malaysia is India’s third largest trading partner of India in ASEAN (Association of Southeast Asian Nations) with a total trade of $20.02 billion during FY 2023-24 accounting for around 17 % of India’s total trade with the trading bloc.

Apart from ways to resolve pending issues and increase bilateral trade, both countries also discussed the ongoing review of the ASEAN India Trade in Goods Agreement (AITIGA), agreeing to speed up the AITIGA review for a conclusion within 2025 itself. Malaysia is the ASEAN Chair for the year 2025. The trading bloc also comprises Brunei, Cambodia, Indonesia, Laos, Myanmar, Philippines, Singapore, Thailand, and Vietnam.

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India is looking for a country-wise review of the AITIGA (ASEAN-India Trade in Goods Agreement) to contain its rising trade deficit with the 10-nation bloc. While India’s exports to the Association of South-East Asian Nations (ASEAN) member countries have risen 65.23% from $26,628 million in FY 2010-11 to $44,000 million in FY 2022-23, imports from ASEAN countries to India have grown 186% from $30,608 million in FY 2010-11 to $87,577 million in FY 2022-23. Even in FY 2023-24, India’s imports from ASEAN countries were recorded at $66,551 million against total exports of $32,713 million to the bloc.

In October 2024, Indian government sources told CNBC TV18 that the bilateral positions of many ASEAN countries have changed since the implementation of the agreement in 2010 and some of them don’t reflect the same position anymore.

Stating that the 10-nation bloc is not a common customs union but a grouping of countries at different stages of development, sources had added that India is trying to build flexibility in review while speaking to individual countries. There have been concerns raised by the Indian industry over cheap imports from ASEAN countries impacting domestic industries in the steel and electronics sector.

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