India-ASEAN Trade Talks on the Horizon: Strengthening Economic Ties

India is gearing up for the next round of talks with ASEAN to review their free trade agreement, scheduled to be held in October in Jakarta. The discussions aim to boost the agreement's efficiency and accessibility, as part of ongoing efforts to facilitate trade between the two regions.

The ASEAN region holds a critical role in Indian trade, accounting for about 11% of its global trade share, with bilateral trade swelling to USD 123 billion in 2024-25. These figures highlight the robust economic ties and underscore the potential for future cooperation.

Additionally, Singapore, a prominent trade ally of India within ASEAN, reported bilateral trade worth USD 34.26 billion and is India's second-largest source of foreign direct investment. Discussions have centered on streamlining trade logistics, regulatory alignment, and exploring new areas such as semiconductor sectors and digital trade.