India-ASEAN Relations: Act East Policy, ASEAN-India Free Trade Area
International Relations & Places in News › India and Its Extended Neighbourhood · Topic 3.7
India and the Association of Southeast Asian Nations, ASEAN, have been dialogue partners since 1992 and a Comprehensive Strategic Partnership since 2022. ASEAN is central to India's Act East Policy. The ASEAN-India Trade in Goods Agreement, AITIGA, has been in force since 2010 and is under review, with talks continuing through 2026. India-ASEAN trade was 128 billion US dollars in 2025-26, and 2026 has been marked as the year of maritime cooperation.
5 min read · UPSC Prelims · International Relations · India and Its Extended Neighbourhood
At a Glance
- Dialogue partner Since 1992; full partner 1995; summit level 2002
- Upgraded Strategic Partnership 2012; Comprehensive Strategic Partnership 2022
- Trade pact AITIGA in force 2010; under review
- Trade 128 billion dollars in 2025-26
- 2026 theme Year of maritime cooperation
- Exam link UPSC Prelims, International Relations: India and Its Extended Neighbourhood
Where Does It Fit?
This is the seventh topic of the macro on India and its extended neighbourhood. ASEAN is the centre of the Indo-Pacific region, and India’s Act East Policy is built around it. Previous topic: India-Africa Relations: India-Africa Forum Summit, Development Partnership. Next topic: copper, oil, food Groupings…">India-Latin America and Caribbean Relations.
How Has the Partnership Developed?
- Dialogue steps: India became a sectoral dialogue partner of ASEAN in 1992, a full dialogue partner in 1995, and held its first summit-level partnership in 2002.
- Strategic status: relations were raised to a Strategic Partnership in 2012 and to a Comprehensive Strategic Partnership in 2022.
- Act East Policy: India converted the Look East Policy of 1991 into the Act East Policy in 2014, as in Look East Policy and Its Evolution into Act East Policy.
- Forums: India belongs to the East Asia Summit, the ASEAN Regional Forum and the ASEAN Defence Ministers’ Meeting-Plus, where Defence Minister Rajnath Singh met the Japanese and American defence ministers in the Philippines on 28 October 2026.
- Chair in 2026: the Philippines holds the ASEAN chair for 2026, according to reports of the summits.
ASEAN has ten members: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Timor-Leste joined as the eleventh member in October 2025.
What Is Happening With the Trade Agreement?
| Item | Detail |
|---|---|
| AITIGA | The ASEAN-India Trade in Goods Agreement has been in force since 1 January 2010. India has a trade deficit with ASEAN, and has asked for the review of the agreement to improve market access and rules of origin and to address misuse by third countries |
| Review meetings | The 12th Joint Committee met in Jakarta on 30 March 2026, the 13th in New Delhi on 6-10 July, and a meeting in Jakarta on 6-9 October 2026 agreed to expedite pending chapters. The next meeting is set for India in January 2027 in hybrid mode |
| Aim | The parties aim for substantial conclusion of the review in 2026, with eight sub-committees working on customs, market access, rules of origin and other chapters |
| Trade value | India-ASEAN trade reached 128 billion dollars in 2025-26 |
| Maritime | The India-ASEAN summit decided to observe 2026 as the year of maritime cooperation, covering shipping, ports and blue economy |
The wider groups are described in Association of Southeast Asian Nations (ASEAN) and India’s Dialogue Partnership.
What Are the Challenges?
- Trade deficit: India imports more from ASEAN than it exports, and Indian industry worries about cheap imports coming through ASEAN from China.
- Not in RCEP: India stayed out of the Regional Comprehensive Economic Partnership in 2019, which limits its place in the region’s trade network, as in Regional Comprehensive Economic Partnership (RCEP) and India’s Withdrawal.
- Connectivity gaps: projects such as the Trilateral Highway have been delayed, as in India-Myanmar Relations: Act East Policy, Kaladan Multimodal Transit Transport Project.
- South China Sea: India supports freedom of navigation and a code of conduct, but ASEAN members are divided on the dispute.
- ASEAN centrality: India supports ASEAN’s central role while also working through the Quad and other groupings.
As an analytical point, India’s strongest card in the region is its offer of security and development partnership without territorial claims, and ASEAN’s interest in diversifying from dependence on a single power. ASEAN is also India’s route to a wider Indo-Pacific role, since the East Asia Summit, the ASEAN Regional Forum and the defence ministers’ forum bring in Japan, the United States and Australia in one place. The AITIGA review is the test, because a fairer agreement would strengthen India’s goods exports, and the maritime year of 2026 is a chance to show results in ports, shipping and security cooperation.
Why Is This Topic Important?
- Dates 1992, 2012, 2022 asked
- Policy Act East
- Review AITIGA talks
What Came Next?
The next topic covers Latin America and the Caribbean, a region where India is expanding. Next topic: India-Latin America and Caribbean Relations.
Key People and Terms
- AITIGA ASEAN-India Trade in Goods Agreement
- ASEAN centrality ASEAN’s central role in regional forums
- ADMM-Plus ASEAN Defence Ministers’ Meeting-Plus
- East Asia Summit Annual leaders’ forum
- RCEP Regional Comprehensive Economic Partnership
- Code of conduct Rules for South China Sea behaviour
Exam Corner
Points to Remember
- Dialogue partner since 1992; Comprehensive Strategic Partnership: 2022.
- AITIGA in force from 2010.
- Trade 2025-26: 128 billion dollars.
- ASEAN has 11 members after Timor-Leste joined in 2025.
- Act East Policy announced in 2014.
Do Not Confuse With
- Look East and Act East 1991 economic focus versus 2014 action and security focus
- ASEAN and RCEP Bloc versus trade pact that India left
- AITIGA and AIFTA Goods agreement versus broader trade area name
Memory Hook
Ninety-two began, twenty-two made it comprehensive; AITIGA waits for review and the sea is the theme.
Mains Angle
Questions ask about the centrality of ASEAN in India’s foreign policy. These points add depth.
- Policy Act East core
- Trade Review and deficit
- Security Maritime cooperation
A Question You May Face
An original practice question, not a past paper question.
“Discuss the evolution of India-ASEAN relations and the importance of reviewing the ASEAN-India Trade in Goods Agreement.”
How to Answer
- Evolution 1992 to 2022.
- Policy Act East.
- Trade Deficit and review.
- Security Maritime year.
GS Relevance
Frequently Asked Questions
When did India become an ASEAN dialogue partner?
India became a sectoral dialogue partner of ASEAN in 1992 and a full dialogue partner in 1995. The relationship became a Strategic Partnership in 2012 and was raised to a Comprehensive Strategic Partnership in 2022, reflecting its growing depth.
What is the ASEAN-India Trade in Goods Agreement?
The ASEAN-India Trade in Goods Agreement is a free trade pact on goods that has been in force since January 2010. India seeks to review it because it runs a trade deficit with ASEAN, and review meetings continued in March, July and October 2026.
How big is India-ASEAN trade?
Trade between India and ASEAN reached 128 billion US dollars in 2025-26. India imports more than it exports, and its priority in the review of the trade agreement is to improve market access for Indian goods and to tighten rules of origin.
What is the Act East Policy?
The Act East Policy, announced in 2014, is India's policy to deepen economic, strategic and cultural ties with South-East and East Asia. It built on the Look East Policy of 1991 and puts ASEAN at its centre, with a focus on connectivity and security.
Which countries belong to ASEAN?
ASEAN has eleven members: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, with Timor-Leste admitted in October 2025. India is a dialogue partner and takes part in the East Asia Summit and the ASEAN Regional Forum.
PYQ Practice — Statement Analysis
1 India became a Comprehensive Strategic Partner of ASEAN in 2022.
Strategic partnership came in 2012.
2 India is a member of the Regional Comprehensive Economic Partnership.
India withdrew from RCEP talks in 2019.
3 The Act East Policy was announced in 2014.
It built on the Look East Policy.
4 AITIGA has been in force since 2010.
It is under review.
Past Mains Questions on This Topic
This topic comes under India and Its Extended Neighbourhood. UPSC Mains questions asked on the matching syllabus topic, year-wise with marks:
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