AIFTA — ASEAN-India Free Trade Area
ASEAN-India Trade in Goods Agreement · effective 1 January 2010 · India + 10 ASEAN states
Structure
The ASEAN-India Free Trade Area (AIFTA) is built on three pillars: Trade in Goods (AITIG, signed Bangkok 2009, in force 2010), Trade in Services (AITISA, signed Nay Pyi Taw 2014, in force 2015), and Investment (AIIA, signed 2014, in force 2015). The 10 ASEAN members — Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam — together with India committed to phased tariff elimination on substantially all trade in goods over a 6–8 year window post-implementation.
Tariff schedule
AIFTA categorises traded goods into Normal Track (NT-1, NT-2) and Sensitive Track. Normal Track-1 products had tariffs eliminated by 31 December 2013 for ASEAN-6 (Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand) and India; CLMV countries (Cambodia, Laos, Myanmar, Vietnam) had until 31 December 2018. Normal Track-2 followed similar schedules with longer phase-outs. The Sensitive Track (around 5% of tariff lines) allows reduced — but not eliminated — tariffs on the most protected items.
Rules of origin
AIFTA uses a hybrid origin rule: products must satisfy either a 35% Regional Value Content (RVC) calculated on FOB price, OR a Change in Tariff Subheading (CTSH at HS 6-digit). For specific products listed in the Product-Specific Rules annex, alternative criteria apply (e.g. specific manufacturing process for textiles, particular CTC tests for chemicals). Cumulation is permitted across all 11 members under the bilateral cumulation provision. Indian exporters claim AIFTA preferences with Form AI Certificate of Origin issued by EIA or designated agencies.
Review and AITIGA upgrade
India and ASEAN have been negotiating an upgrade to AITIGA since 2019 to address concerns including misuse of preferences, lack of digital trade chapter, and India's trade-deficit position. The review cycle covers tariff coverage broadening, RoO tightening, services market access enhancement, and sectoral cooperation in digital economy and supply chains. As of mid-2026 the review remains under negotiation with periodic AEM-India meetings. India's largest AIFTA trade flows are with Singapore, Indonesia, Malaysia, Thailand, and Vietnam.