Asean-India Trade in Goods Agreement (Aitiga)

With the ASEAN-India Trade in Goods Agreement (AITIGA), both India and the ASEAN (Association of Southeast Asian Nations) countries have taken a major step in improving their trade relations. The AITIGA was signed in 2009 and came into effect on January 1, 2010. Since then, it has helped in boosting the trade between India and the ASEAN member states.

Under this agreement, the ASEAN member states and India have agreed to eliminate tariffs on 90% of the goods traded between them. This has resulted in a significant increase in the trade between India and the ASEAN member states. In fact, the trade between India and the ASEAN member states has increased from $45 billion in 2010 to $80 billion in 2019.

The AITIGA covers a wide range of products, including agricultural products, textiles, chemicals, and machinery. This has provided Indian businesses with greater access to the ASEAN markets, while the ASEAN member states have gained access to the Indian market.

One of the main benefits of the AITIGA is that it has helped in reducing the transaction costs for businesses in both India and the ASEAN member states. This has made it easier for businesses to trade with each other, and has also helped in promoting a more competitive environment.

Another important aspect of the AITIGA is that it has helped in promoting the growth of the small and medium-sized enterprises (SMEs) in both India and the ASEAN member states. The elimination of tariffs has made it easier for SMEs to access new markets and increase their exports.

The AITIGA has also helped in improving the investment climate between India and the ASEAN member states. With the reduction in tariffs, businesses from both India and the ASEAN member states are now more willing to invest in each other`s markets.

In conclusion, the ASEAN-India Trade in Goods Agreement (AITIGA) has been a significant development in the trade relations between India and the ASEAN member states. It has helped in promoting greater trade, reducing transaction costs, promoting a more competitive environment, and improving the investment climate. As such, it has been a win-win situation for both India and the ASEAN member states.

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