India, Asean begin talks on promise of new 'package'

KUALA LUMPUR: Amidst an unsettling global scenario, India is panning its economic heft to resolve the Asean trade disputes. The Asean bloc, after a rather lackluster round of AITIGA (Asean India Trade in Goods Agreement) review in Delhi last month, has offered a new package that will create a "landing zone" for India to address the widening trade imbalance concerns. India's trade deficit with Asean stood at approximately $43.57 billion in FY 2022-23.

Talking to TOI, Mastura Ahmad Mustafa, deputy secretary general (trade), ministry of investment, trade and industry, Malaysia, said, "We convened special AEM (Asean Economic Ministers) meetings subsequent to our discussions at the Delhi AITIGA review, to reach key decisions that will help us achieve a substantial conclusion of the review process before this year ends. We have offered a new package to India, a landing zone, which will provide a constructive basis to progress our talks."

"We are encouraged by the positive feedback we have received from India, on the package and we look forward to build on this momentum to deliver meaningful outcomes for both sides," she further added. Currently, Malaysia is hosting the 57th AEM & Related Meetings, and the Indian delegation led by minister of state for commerce & industry, Jitin Prasada, has already arrived in Kuala Lumpur for the meetings.

Mastura declined to give details of the 'package'. Sources, however, pointed out specifics are being refined and the proposals are designed not merely to address current trade frictions but to harness the vast untapped potential of economic ties.

Some of the proposals that could find its way into the final framework would likely be on joint ventures in high-potential sectors like electronics and pharmaceuticals etc.

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