Aifta Agreement Countries

Positive relations were established at the first Indian Business and Investment Forum, Exhibition and Buyer/Seller Meet in 2009, which aimed to improve economic engagement between the two countries. In the same year, India extended duty-free preferential tariff regimes to Cambodia. Indian businessmen in Cambodia have also established an Indian Chamber of Commerce to promote bilateral trade and investment relations. India also signed a free trade agreement on products with Brunei in 2010, which significantly reduced import duties on products ranging from seafood to chemicals and clothing. In return, Brunei also reduced import tariffs on various Indian products. After six years of negotiations, the ASEAN-India Free Trade Agreement was signed on 13 August 2009 in Bangkok, Thailand. The agreement was intended only for trade in goods and did not contain software and information technology. Negotiations for a free trade agreement in the services and investment sector began in October 2008 and ended on 20 December 2012. Indonesia and Vietnam represent two of ASEAN`s six largest economies, while Myanmar is one of the four smallest economies in the region, along with Cambodia, Brunei and Laos.

Together, these three countries combined for a total GDP of $1.07 trillion, a population of $378.5 million, and exports to India of $13.37 billion (about 2.7 percent of total Indian imports). In 2010, India concluded a free trade agreement with Indonesia, which reduced tariffs on imports of products such as seafood, chemicals and clothing. In return, Indonesia reduced tariffs on imports of Indian products. In 2011, India and Indonesia signed a total of 18 agreements in the mining, infrastructure and manufacturing sectors, totalling $15.1 billion, in addition to a free trade agreement on goods. Trade relations between India and the Philippines began to flourish when a trade agreement was signed on 29 May 1979. In addition, in 1995, following the Philippines` first trade mission to India, a joint working group and a Joint Economic Council were established to assess and identify possible trade pathways and identify new areas of cooperation. In addition, Indonesia and India signed a Memorandum of Understanding (MOU) in 2005 to establish a Joint Task Force (JSG) to examine the positive aspects of signing a Comprehensive Economic Cooperation Agreement (ECSC). The ECSC must be an agreement that includes economic cooperation and trade in goods and services as well as investment, which would lead to a higher level of mutually beneficial economic cooperation between the two countries.

The JSG forecasts that this ACA would bring total exports between India and Indonesia to $17.5 billion in 2020, with Indian exports reaching $7.8 billion and Indonesian exports at $9.7 billion. The Indian government continued its efforts to develop air, land and sea routes to strengthen trade relations with Myanmar, as well as to build a pipeline. Countries also signed a bilateral border agreement on border trade in 1994, which will be implemented from designated points in Manipur, Mizoram and Nagaland. The two countries have mainly cooperated in agriculture, health, education, pharmacy, telecommunications, information technology, steel, oil, natural gas, hydrocarbons and food processing. Since India granted Vietnam «Most Favored» nation status in 1975, trade relations have been robust. In 1978, the two countries signed a bilateral trade agreement, followed by the Bilateral Investment Promotion and Protection Agreement (BIPPA) on 8 March 1997.