India’s textile trade balance with ASEAN turns negative despite high tariffs

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An India Exim Bank study finds that although New Delhi keeps many ASEAN textile lines in its 20 percent‑plus tariff band, imports from the bloc have surged—particularly from Vietnam, Indonesia and Thailand—flipping India’s textile trade balance with ASEAN from a $450 million surplus in 2021 to a $20 million deficit in 2023. Vietnam alone supplied 42.8 percent of India’s ASEAN textile imports last year. Researchers say asymmetric liberalisation under the ASEAN‑India Trade in Goods Agreement, plus India’s low uptake of tariff concessions in ASEAN markets, has widened the gap. Fabrics and yarns dominate inbound flows, even where India enjoys comparative advantage, prompting calls to renegotiate AITIGA and secure better access for Indian exports.

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