India's Commerce Minister, Piyush Goyal, has issued a warning to the Association of Southeast Asian Nations (ASEAN), stating that India may take retaliatory measures if long-standing trade issues are not resolved. Speaking at the ASEAN-India Economic Ministers' Meeting, Goyal highlighted the growing trade deficit and the unfair market access faced by Indian exporters. The trade imbalance between India and ASEAN has worsened over the years, with the deficit reaching $38.5 billion in FY24.

Goyal emphasised that non-tariff barriers imposed by ASEAN countries are a major factor in this imbalance. He pointed out that one ASEAN member has placed quotas on the number of Indian automobiles allowed for export, further restricting market access for Indian products. If these barriers are not addressed during the ongoing review of the Free Trade Agreement (FTA), Goyal said, India may be forced to consider retaliatory actions.

“If ASEAN countries give us a fair deal in terms of the review, that will help us right-size the huge trade deficit. If they don't, we will have to look at the non-tariff barriers imposed on us, and I will have to consider retaliatory measures,” Goyal was quoted as saying by Business Standard.

The FTA between India and ASEAN, which came into effect in 2010, was intended to boost trade between the two regions. However, India has been critical of the agreement, arguing that it has not effectively addressed the growing trade imbalance. Imports from ASEAN nations have increased at a faster rate than India's exports, widening the trade gap. The current FTA review, which is set to conclude in 2025, is seen as an opportunity to address these concerns.

During the meeting, Goyal urged ASEAN to take swift action to rectify the trade imbalance and remove non-tariff barriers that hinder Indian exports. Failure to do so, he warned, could result in India imposing its own measures in response.

In addition to his involvement in the ASEAN talks, Goyal is also on a five-day visit to the United States, where he is meeting with U.S. Secretary of Commerce Gina Raimondo and Trade Representative Katherine Tai. The meetings will focus on strengthening cooperation in the semiconductor and electronics sectors, promoting investment in manufacturing, and exploring partnerships in emerging technologies and critical minerals.