Bureau Report | Asia-Pacific Trade

India’s Act East policy materialized through the ASEAN FTA (2010/2014) and the Japan CEPA (2011).

Japan CEPA

Negotiated over approximately four years, the agreement encouraged:

• Industrial corridor investments
• Automotive value chain integration
• Infrastructure collaboration

Japanese investment in manufacturing and infrastructure became a notable outcome.

ASEAN FTA

Negotiated over 7–11 years depending on sector, the agreement increased trade volumes but also triggered debate regarding trade deficits and manufacturing pressures.

India is currently reviewing aspects of the ASEAN agreement to address imbalances and ensure fair competition.

Editorial Note:
Trade balances fluctuate annually and depend on broader macroeconomic factors.