India Inks Historic Trade Pact with ASEAN to Boost Exports

Today, India finalized a landmark free trade agreement with the Association of Southeast Asian Nations (ASEAN), aiming to elevate its export market by 25% over the next five years. The deal, signed in New Delhi, slashes tariffs on electronics, pharmaceuticals, and agricultural products, positioning India as a competitive player in the Southeast Asian market. This agreement comes at a critical juncture as India seeks to diversify its trade partnerships amid global supply chain disruptions. The commerce ministry projects that the pact will create over 1.2 million jobs in manufacturing and services, particularly in tier-2 cities. Small and medium enterprises, which form the backbone of India’s export economy, are expected to benefit significantly from streamlined customs procedures and reduced trade barriers. However, concerns linger about India’s ability to compete with ASEAN’s low-cost manufacturing hubs like Vietnam. The government has pledged to invest in infrastructure and skill development to ensure local industries remain competitive. Industry leaders hailed the deal as a game-changer, but analysts warn that India must address domestic regulatory bottlenecks to fully capitalize on this opportunity. The agreement also includes provisions for digital trade, aligning with India’s push toward a tech-driven economy.