India and the Association of Southeast Asian Nations (ASEAN) have been trading partners for many years now. In an effort to further strengthen their economic ties, the two parties signed the ASEAN-India Free Trade Agreement (AIFTA) in 2009. This agreement aimed to increase the flow of goods, promote investment, and improve economic cooperation between India and the ASEAN member states.

Under the AIFTA, tariffs on about 4,000 product lines were eliminated. This has resulted in increased trade between India and ASEAN member states, which has grown from $21 billion in 2005 to $97 billion in 2019. The agreement covers a variety of products, including agricultural goods, chemicals, electronic products, textiles, and machinery. Essentially, the AIFTA has helped to foster a more favorable trade environment between India and ASEAN, which has benefited both sides.

India`s exports to ASEAN have grown significantly since the agreement came into effect. The country`s major exports to the region include refined petroleum, organic chemicals, mineral fuels, and iron and steel. On the other hand, India`s imports from ASEAN member states mainly consist of electronic goods, machinery, and mineral fuels. As such, it is clear that the AIFTA has opened up opportunities for both parties to expand their trade, while also providing them with access to a wider range of products.

One of the most significant benefits of the AIFTA is that it has paved the way for the development of supply chains between India and ASEAN. This has been highlighted by the growth of industries such as automotive, electronics, and textiles in India, which have become increasingly integrated with ASEAN member states. The agreement has also stimulated foreign investment in India, as ASEAN investors have recognized the country`s potential as a manufacturing hub.

In conclusion, the ASEAN-India Free Trade Agreement has been a key driver of economic growth and development for both India and ASEAN. The agreement has facilitated the free flow of goods, encouraged investment, and fostered the development of supply chains between the two sides. It has also helped to create new opportunities for businesses and entrepreneurs, while providing consumers with access to a wider range of products. As such, the AIFTA is expected to continue to play a significant role in the future of trade between India and ASEAN.