India pushes to upgrade ASEAN FTA, advances talks on CECA with Australia

India is actively pushing to upgrade the ASEAN-India Trade in Goods Agreement (AITIGA), which has been under formal review since 2024, with nine rounds of ne...

What Happened

India is actively pushing to upgrade the ASEAN-India Trade in Goods Agreement (AITIGA), which has been under formal review since 2024, with nine rounds of negotiations completed; the review aims to address India's widening trade deficit with ASEAN, which reached approximately USD 43–44 billion in 2022–23.
Key Indian demands in the AITIGA upgrade include stricter Rules of Origin (RoO) provisions (to prevent third-country goods, especially from China, from being re-routed through ASEAN to benefit from lower tariffs), greater market access for Indian exports in services, IT, pharmaceuticals, and agriculture, and a country-wise review approach.
Simultaneously, the 11th round of negotiations for the India-Australia Comprehensive Economic Cooperation Agreement (CECA) concluded in New Delhi in August 2025, with both sides covering goods, services, digital trade, government procurement, and new areas such as critical minerals, agri-tech, gender, and MSMEs.
India's diplomatic engagement is anchored by upcoming high-level visits to Indonesia, Australia, and New Zealand, signalling the strategic weight New Delhi attaches to its Indo-Pacific economic partnerships.
From 1 January 2026, 100% of Australian tariff lines are already zero-duty for Indian exports under the interim ECTA (Economic Cooperation and Trade Agreement), providing a foundation for the broader CECA.

Static Topic Bridges

ASEAN-India Trade in Goods Agreement (AITIGA)

AITIGA was signed in Bangkok in 2009 at the 7th ASEAN Economic Ministers-India Consultations and entered into force on 1 January 2010. It originated from the Framework Agreement on Comprehensive Economic Cooperation between India and ASEAN (2003). The agreement committed both sides to progressively eliminating duties on 76.4% of goods and liberalising tariffs on over 90% of goods, with special provisions for India's sensitive products — crude and refined palm oil, coffee, black tea, and pepper.

Signed: 2009; in force: 1 January 2010
Covers: Normal Track (NT-1 and NT-2), Sensitive Track, Special Products, and Highly Sensitive List
India's trade deficit with ASEAN grew from USD 7.5 billion (2011) to ~USD 44 billion (2023)
India's imports from ASEAN grew 234.4% (FY2009–23) vs. exports at only 130.4%
Formal AITIGA review under a Joint Committee began in 2024

Connection to this news: The upgrade push is directly driven by the structural asymmetry in AITIGA's market access outcomes — Indian producers gained less from the bloc than ASEAN exporters gained in India.

India-ASEAN Comprehensive Strategic Partnership and Act East Policy

India's Look East Policy, launched in 1992 when India became a sectoral dialogue partner of ASEAN, was revamped as the Act East Policy in 2014 to add a strategic dimension. India became an ASEAN dialogue partner in 1996 and a summit-level partner in 2002. Relations were elevated to a Strategic Partnership in 2012, and further upgraded to a Comprehensive Strategic Partnership (CSP) at the Commemorative Summit in Phnom Penh on 12 November 2022, marking 30 years of ASEAN-India ties.

Look East Policy launched: 1992 (India became ASEAN sectoral dialogue partner)
Rebranded as Act East Policy: 2014
Elevated to Comprehensive Strategic Partnership: November 2022 (Phnom Penh)
ASEAN-India trade: USD 122.67 billion in 2023–24
New CSP areas: digital economy, supply chains, maritime security, emerging technologies

Connection to this news: The AITIGA upgrade and CECA talks are the economic instruments of the broader Act East / CSP strategic framework — trade policy is the operationalisation of India's geopolitical pivot to the Indo-Pacific.

India-Australia CECA and the ECTA Predecessor

The India-Australia Economic Cooperation and Trade Agreement (ECTA) was signed on 2 April 2022 and entered into force on 29 December 2022 — serving as an interim agreement while full CECA negotiations continue. CECA aims to be a comprehensive agreement covering goods, services, digital trade, government procurement, and Rules of Origin, building on ECTA outcomes. CECA negotiations cover new-generation trade areas including competition policy, MSMEs, gender, innovation, agri-tech, and critical minerals.

ECTA signed: 2 April 2022; in force: 29 December 2022
CECA: full agreement under negotiation; 11th round completed August 2025
From 1 January 2026: 100% Australian tariff lines are zero-duty for Indian exports
CECA covers five core areas: Goods, Services, Digital Trade, Government Procurement, Rules of Origin

Connection to this news: The CECA negotiations represent India's shift from goods-only FTAs to 21st-century comprehensive trade frameworks that address services, digital trade, and critical supply chains — areas where India has comparative advantage.

Rules of Origin (RoO) in Trade Agreements

Rules of Origin are criteria used to determine the national source of a product for the purposes of applying preferential tariff rates under a free trade agreement. They prevent "tariff shopping" — the practice of routing goods from a non-partner country through a partner country to benefit from lower tariffs. RoO typically require a minimum percentage of value addition or a change in tariff classification within the FTA partner country.

Two types: Preferential RoO (apply to FTAs) and Non-preferential RoO (apply to trade remedies)
Common criteria: Change in Tariff Heading (CTH), Value Added threshold (e.g., 35–40% domestic value addition), or Specific Process Rules
India's AITIGA concern: Chinese goods re-routed through ASEAN members to avail lower Indian tariffs

Connection to this news: Stricter RoO is India's primary technical demand in the AITIGA upgrade — it is the mechanism to ensure that tariff preferences benefit genuine ASEAN producers and not third-country transshipment.

Key Facts & Data

AITIGA signed: 2009; in force: 1 January 2010
India's trade deficit with ASEAN: ~USD 44 billion (FY2022–23)
ASEAN-India total trade: USD 122.67 billion (2023–24)
India's imports from ASEAN grew 234.4% (FY2009–23); exports grew only 130.4%
AITIGA review: 9 rounds completed as of mid-2025; review targeted for completion by October 2025
India-Australia ECTA: in force 29 December 2022
India-Australia CECA: 11th round held August 2025
From 1 January 2026: 100% Australian tariff lines are zero-duty for Indian exports
India-ASEAN Comprehensive Strategic Partnership elevated: November 2022 (Phnom Penh)
Look East Policy launched: 1992; renamed Act East Policy: 2014