India’s Asia-Pacific Economic and Strategic Engagements

India’s Asia-Pacific Economic and Strategic Engagements

India’s engagement in the Asia-Pacific has grown through trade agreements, strategic partnerships, and maritime security cooperation. The focus remains on strengthening economic linkages while supporting a free, open, and rules-based Indo-Pacific.

Bilateral Engagements with Australia, New Zealand, and Indonesia

India has deepened its ties with key Asia-Pacific partners through trade, strategic dialogues, and upgraded diplomatic frameworks.

  • India-Australia ECTA: The India-Australia Economic Cooperation and Trade Agreement (ECTA) entered into force on December 29, 2022.
  • Tariff access: On January 1, 2026, Australia eliminated all remaining tariffs on Indian exports, giving 100% zero-duty market access.
  • Trade volume: Bilateral trade between India and Australia stood at USD 24.1 billion (about Rs. 2,24,378 crore) in 2024–25, with Indian exports at USD 8.5 billion.
  • India-New Zealand ties: India and New Zealand elevated their relationship to a Strategic Partnership during an official prime ministerial visit on July 10-11, 2026.
  • Diplomatic milestone: This was the first visit by an Indian Prime Minister to New Zealand in 40 years.
  • Trade target: The two sides set a goal to double bilateral trade by 2030.
  • India-Indonesia partnership: Prime Minister Narendra Modi visited Indonesia on July 6-8, 2026, and held bilateral talks with President Prabowo Subianto.
  • Strategic status: The visit was the first bilateral visit after the relationship was upgraded to a Comprehensive Strategic Partnership.

India-ASEAN Economic Relations and AITIGA Review

ASEAN remains central to India’s Act East Policy and its trade and connectivity outreach in Southeast Asia.

  • Trade significance: Bilateral trade between India and ASEAN reached USD 128 billion in 2025–26, accounting for about 11% of India’s total global trade.
  • AITIGA: The ASEAN-India Trade in Goods Agreement (AITIGA) was signed in 2009 and implemented in 2010.
  • Review process: India hosted the 13th AITIGA Joint Committee meeting in New Delhi in July 2026 to advance the modernization review of the agreement.
  • Co-chairs: The meeting was co-chaired by Nitin Kumar Yadav, Additional Secretary, Department of Commerce, India, and Mastura Ahmad Mustafa, Deputy Secretary General of Trade, Malaysia.
  • ASEAN Chair: Malaysia was the 2026 ASEAN Chair during the review.
  • Priority areas: The review involves eight sub-committees, with focus on Customs Procedures and Trade Facilitation, National Treatment and Market Access, and Rules of Origin.
Partner / Framework Key Agreement / Instrument Key Metrics / Trade Status
Australia ECTA (in force from Dec 29, 2022) 100% zero-duty market access from Jan 1, 2026; USD 24.1 billion trade in 2024–25
ASEAN AITIGA (signed 2009; review in July 2026) USD 128 billion trade in 2025–26; about 11% of India’s global trade
IPEF Pillars II, III and IV agreements Vice-Chair of Supply Chain Council; observer in Pillar I
New Zealand Strategic Partnership (elevated July 2026) Target to double bilateral trade by 2030

Indo-Pacific Economic Framework for Prosperity (IPEF)

The Indo-Pacific Economic Framework for Prosperity (IPEF) is a 14-nation initiative launched on May 23, 2022 to strengthen economic cooperation in the region.

  • Founding role: India is a founding partner of IPEF.
  • Supply chain role: India serves as Vice-Chair of the IPEF Supply Chain Council.
  • Pillar II: India signed the Supply Chain Agreement, which came into force on February 24, 2024.
  • Pillar III: India signed the Clean Economy Agreement on September 21, 2024.
  • Pillar IV: India signed the Fair Economy Agreement on September 21, 2024.
  • Pillar I status: India remains an observer in the Trade Pillar and has not joined the binding trade commitments.

Quad Security Framework and Maritime Initiatives

The Quad is an important plurilateral platform for security coordination, maritime domain awareness, and regional connectivity in the Indo-Pacific.

  • Quad Foreign Ministers’ Meeting: India hosted the Quad Foreign Ministers’ Meeting in New Delhi on May 26, 2026.
  • Participants: The meeting was attended by External Affairs Minister S. Jaishankar, US Secretary of State Marco Rubio, and the Australian and Japanese foreign ministers.
  • Maritime surveillance: Cooperation is supported by the Indo-Pacific Maritime Surveillance Collaboration (IPMSC).
  • Maritime domain awareness: The Indo-Pacific Partnership for Maritime Domain Awareness (IPMDA) provides near-real-time integrated maritime data.
  • Regional coverage: IPMDA covers the Indian Ocean and Pacific regions.

Key Prelims Takeaways

  • ECTA: India-Australia ECTA entered into force on December 29, 2022.
  • Zero-duty access: Australia granted 100% zero-duty market access to Indian exports from January 1, 2026.
  • AITIGA: The ASEAN-India Trade in Goods Agreement was signed in 2009 and implemented in 2010.
  • AITIGA review: The 13th Joint Committee meeting was held in New Delhi in July 2026.
  • IPEF role: India is a founding partner, Vice-Chair of the Supply Chain Council, and observer in the Trade Pillar.
  • IPEF agreements: India has signed Pillars II, III and IV of IPEF.
  • Quad maritime tools: IPMSC and IPMDA are the main maritime cooperation mechanisms discussed under the Quad.
Originally written on March 15, 2026 and last modified on September 5, 2026.

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