India, July 04 : India on Friday said it is intensifying efforts to modernise its trade architecture in the Indo-Pacific, with work underway to upgrade the ASEAN-India Trade in Goods Agreement (AITIGA) and negotiations progressing with Australia for a broader Comprehensive Economic Cooperation Agreement (CECA). The developments were outlined by senior officials of the Ministry of External Affairs during a special media briefing on Prime Minister Narendra Modi’s upcoming three-nation tour of Indonesia, Australia and New Zealand.
The Ministry of External Affairs said the review of the ASEAN-India Trade in Goods Agreement remains a key priority in India’s economic engagement with Southeast Asia. Officials described the existing pact as dated and in need of a major refresh to reflect current production systems, supply chains, tariff structures and market realities across both India and the ASEAN region. The government believes that a revised framework can inject fresh momentum into trade by improving market access and making the agreement more responsive to the needs of contemporary economies.
Secretary (East) in the Ministry of External Affairs, Rudrendra Tandon, said the AITIGA review is a complex but important process because it is a multilateral agreement that requires consensus among all ASEAN member states. He noted that India has been in continuous touch with its ASEAN partners and has repeatedly stressed the need to revisit the trade pact in light of economic changes over the years. According to him, the agreement was negotiated in a very different economic environment and no longer adequately captures the current structure of commerce, manufacturing and regional integration.
Tandon explained that the original agreement contains varying tariff commitments and concession structures among participating countries, and the present review seeks to move toward deeper liberalisation and more balanced outcomes for all sides. He said India has been engaging the major economies within ASEAN in particular, since their support will be critical in taking the negotiations forward and securing a meaningful upgrade to the pact. At the same time, he indicated that India is also strengthening bilateral economic engagement with individual ASEAN countries alongside the wider regional review process.
The emphasis on revisiting AITIGA comes at a time when India is seeking to expand exports, diversify supply chains and build stronger commercial links with fast-growing Asian markets. ASEAN remains one of India’s most significant regional economic partners, both in terms of trade volumes and strategic connectivity. However, Indian policymakers have for some time expressed concerns over trade imbalances, limited gains in certain sectors and the need to correct structural gaps in the existing arrangement. The ongoing review is therefore being seen not merely as a technical exercise but as a larger attempt to recalibrate economic ties with Southeast Asia.
Officials suggested that the objective is not simply to update tariff lines but to create a more future-ready framework that supports modern trade flows. This could include more efficient rules of origin, easier movement of goods, better customs cooperation and a more realistic tariff structure aligned with present-day industry requirements. Although the MEA did not go into the details of the negotiations, the indication was clear that India wants the upgraded agreement to be commercially relevant and strategically beneficial.
On the Australia track, the government said discussions are moving ahead on a comprehensive economic pact that would build upon the Economic Cooperation and Trade Agreement signed by the two countries in 2022. Joint Secretary (Oceania) Vishwesh Negi said both sides are now working towards finalising a balanced Comprehensive Economic Cooperation Agreement, which is expected to broaden the scope of bilateral trade and investment ties beyond the current arrangement.
Negi said the process is being led by the Ministry of Commerce, with the Ministry of External Affairs working in coordination to support the negotiations. He described the proposed CECA as a balanced and comprehensive document that both countries are aiming to conclude through ongoing consultations between negotiating teams. He also indicated that more rounds of talks between the chief negotiators are expected soon, reflecting the seriousness with which both New Delhi and Canberra are approaching the agreement.
The proposed CECA is widely seen as the next major step in India-Australia economic relations. The Economic Cooperation and Trade Agreement signed in 2022 had already laid the groundwork for expanding trade by reducing tariffs on a range of goods and opening up opportunities for businesses in both countries. A broader CECA would potentially cover a much wider basket of sectors, including services, investment, digital trade, critical minerals, education linkages and advanced manufacturing cooperation.
India’s interest in strengthening trade relations with Australia has grown alongside the deepening strategic convergence between the two countries in the Indo-Pacific. Over the last few years, New Delhi and Canberra have significantly expanded cooperation in defence, maritime security, technology, clean energy and supply chain resilience. A comprehensive trade agreement would add an important economic pillar to this expanding partnership and could help both sides reduce vulnerabilities in global supply networks.
The trade-related announcements come just days before Prime Minister Narendra Modi embarks on a three-nation visit beginning July 8. The tour will take him first to Indonesia on July 8 and 9, followed by Australia on July 10 and New Zealand on July 11. The trip is being viewed as an important diplomatic outreach aimed at reinforcing India’s strategic and economic presence across the Indo-Pacific, with trade, connectivity and regional cooperation expected to feature prominently in discussions.
In Indonesia, the focus is expected to be on reviewing the bilateral partnership and advancing cooperation in areas such as trade, maritime affairs, connectivity, digital economy and regional architecture. Indonesia is not only one of Southeast Asia’s largest economies but also a central player in ASEAN. As India seeks to upgrade AITIGA and expand its Act East engagement, closer coordination with Jakarta is likely to carry added significance. Indonesia’s role in shaping regional trade conversations and its importance within ASEAN make it a key partner for India’s broader Southeast Asia strategy.
The Australia leg of the visit will see Prime Minister Modi participate in the third India-Australia Annual Summit process, underlining the importance both governments attach to the relationship. Trade negotiations are expected to be one of the major talking points during the visit, especially as both countries seek to translate their political and strategic closeness into stronger commercial outcomes. A successful push on CECA could become one of the most significant deliverables in the economic dimension of the bilateral partnership.
The final leg of the tour will take the Prime Minister to New Zealand, a visit that carries symbolic as well as diplomatic weight. Modi is set to become the first Indian Prime Minister to visit New Zealand in four decades, a development that signals India’s intent to widen its engagement in the Pacific and deepen ties with like-minded democracies in the region. While the New Zealand visit may not currently be driven by a major trade negotiation on the scale of ASEAN or Australia, it still fits into India’s larger effort to strengthen political, economic and people-to-people partnerships across the wider Indo-Pacific landscape.
Taken together, the messaging from the MEA briefing highlighted a clear policy direction: India wants to update older trade arrangements, pursue new market opportunities and build more resilient regional economic partnerships. The effort to review the ASEAN-India Trade in Goods Agreement reflects an attempt to modernise one of India’s most important regional trade frameworks, while the parallel push for a CECA with Australia shows that New Delhi is also pursuing ambitious bilateral agreements with key strategic partners.
As global trade patterns continue to shift under the pressure of geopolitical competition, supply chain disruptions and economic realignments, India appears determined to position itself more effectively in the Indo-Pacific trade ecosystem. Upgrading legacy agreements and securing new comprehensive trade frameworks could prove central to that strategy. The coming rounds of negotiations with ASEAN and Australia, as well as the discussions during Prime Minister Modi’s three-nation visit, will therefore be closely watched for signs of how India plans to shape its next phase of regional economic engagement.