Role of ASEAN-India Free Trade Agreement in India’s International Trade

Abstract

Emerging economics view Foreign Trade Agreements (FTAs) as a means of development through reduced tariffs
and access to low cost products. They not only lead to development of secure international trade but also promote
manufacturing in domestic territories. AIFTA (ASEAN India Free Trade Agreement) inked in 2010 paved way for
much needed manufacturing and trade boost for both India and ASEAN member states. With more than a decade’s
performance till date, this research paper attempts to evaluate the role AIFTA played in meeting the intended
objectives. This qualitative research is based on secondary data released by government of India. An attempt has
been made to draw patterns and examine if ASEAN countries occupy a prominent place in India’s international
trade. Further a comparison with major trading partners (USA, UAE, UK, China and Australia) reveals that a lot
needs to be done.