India’s commerce deficit with the Affiliation of Southeast Asian Nations (ASEAN) has greater than doubled since 2010 (Photograph: AFP/VNA)

New Delhi (VNA) – India’s commerce deficit with the
Affiliation of Southeast Asian Nations (ASEAN) has greater than doubled because the implementation of the ASEAN-India Commerce in Items Settlement (AITIGA)
in 2010.

Figures launched by the Indian Ministry of Commerce and Business
confirmed that India’s exports to ASEAN member international locations stood at 25.6 billion USD
within the 2010-11, whereas imports from these nations amounted to over 30.6 billion USD.

Within the fiscal yr 2022-2023, India’s exports to ASEAN
international locations have been posted at 44 billion USD, however imports surged far forward at 87.5 billion
USD throughout the identical interval.

The surge in imports not solely eroded the features from
elevated exports but additionally exacerbated the commerce deficit, elevating issues
amongst policymakers and economists.

This pattern additionally continued in fiscal yr 2023-2024. Information from
April 2023-January 2024 confirmed that India’s exports to ASEAN reached 32.7
billion USD, however imports have been recorded at 68.5 billion USD.

Since 2010, bilateral commerce has steadily expanded, hitting 131.5
billion USD within the fiscal yr 2022-23 whereas commerce deficit additionally expanded in
favour of ASEAN international locations.

The discrepancy in commerce efficiency may be attributed to
varied elements, together with India‘s import coverage evolution and tariff constructions. India’s transition from a restrictive commerce coverage regime to
a extra liberalised framework since 1991 has considerably influenced commerce dynamics,
resulting in a surge in imports, significantly intermediate inputs.

Import tariff charges have undergone fluctuations
over time, with the introduction of the Items and Companies Tax (GST) in
2017 marking a milestone in commerce coverage reforms, in accordance with consultants. Even if India has taken steps to streamline commerce procedures
and proper sure inversion of duties, challenges persist in attaining a extra
balanced commerce relationship with ASEAN, they added./.