Modi to skip Asean summit, but review of FTA with region shows progress

Indian PM to attend meet virtually, where status of pact with Asean is set to come up

- Nirmala Ganapathy India Bureau Chief

Indian Prime Minister Narendra Modi may be a no-show at the Oct 26-28 Asean summit, but progress in the review of the Asean-India Trade in Goods Agreement could lead to a much needed boost in trade after negotiations hit a rough patch earlier in 2025.

External Affairs Minister S. Jaishankar will represent India at the East Asia Summit in Kuala Lumpur, while Mr Modi is on the campaign trail in Bihar state ahead of elections.

But the Prime Minister, underlining the importance attached to India’s ties with Southeast Asia, will virtually attend the Asean-India Summit on Oct 26, where the status of the trade agreement review is likely to come up during an overall assessment of ties with Asean leaders.

“Look forward to joining the Asean-India Summit virtually, and to further deepening of the Asean-India Comprehensive Strategic Partnership,” Mr Modi said on X on Oct 23, referencing a telephone conversation with Malaysian Prime Minister Anwar Ibrahim.

India had pushed for a review of the Asean-India Trade in Goods Agreement (AITIGA), which was signed in 2009. Negotiations started in 2023, with the aim of modernising the agreement and addressing issues related to market liberalisation.

Indian industries such as steel and plastics have complained that the current agreement disadvantaged them with higher tariffs. Exporters also argue that access to all Asean markets is not easy or uniform due to non-tariff barriers, especially food safety standards and certification processes affecting agriculture exports from India to Asean.

The review hit a snag in June when India’s Commerce and Industry Minister Piyush Goyal called the agreement “silly” and accused some Southeast Asian nations of acting as “China’s B team”, amid claims that Chinese goods were being routed into India through them.