India's parliament is currently addressing critical trade and economic issues, including the review of the ASEAN-India Trade in Goods Agreement (AITIGA) and the impact of rising US tariffs on Indian goods. Simultaneously, legislative activities are ongoing, with discussions and approvals of key bills in both the Lok Sabha and Rajya Sabha.
AITIGA Review
The review of the AITIGA is a key priority, with the 10th round of discussions between Indian and ASEAN officials taking place from August 11-14. Signed in 2009, the agreement aims to promote trade between India and the ten ASEAN member states. However, India has expressed concerns that the agreement has disproportionately benefited ASEAN countries, leading to a widening trade deficit. Data indicates that India's trade deficit with ASEAN has surged from $12.9 billion in 2017-18 to $45.2 billion in 2024-25.
India's concerns also revolve around the "rules of origin" issue, which has allegedly facilitated the dumping of Chinese goods into India via ASEAN countries. Moreover, India argues that it has opened a larger percentage of its tariff lines (71%) compared to some ASEAN members like Indonesia (41%). Commerce and Industry Minister Piyush Goyal has previously described the initial agreement as "silly," emphasizing the need to address the injury to local industries caused by the existing FTA and the inequitable tariff liberalization. The goal is to complete the AITIGA review by the end of 2025, with potential for a conclusion by October. A possible visit by Prime Minister Narendra Modi to Kuala Lumpur for the ASEAN-India Summit and East Asia Summit in late October is also being considered.
US Tariffs on Indian Goods
The Indian parliament is also grappling with the implications of increased tariffs imposed by the United States. The US has raised tariffs on Indian goods, citing India's continued purchase of Russian oil amid the Russia-Ukraine war. As of August 7, 2025, a 25% reciprocal tariff has been imposed on certain Indian goods exported to the US. An additional 25% tariff is slated to take effect on August 27, bringing the total tariffs to 50% on some products. However, pharmaceuticals and electronics are exempt from these additional tariffs.
These tariffs have raised concerns about their impact on India's economy and exports, particularly for sectors like textiles, gems, and jewelry. The Seafood Exporters Association of India (SEAI) has warned of major disruptions to shrimp exports worth USD 2 billion. The Indian government has stated that the impact of these tariffs will depend on the comparative tariffs imposed on India's competitors and is exploring new markets to mitigate the effects. India's Ministry of External Affairs has called the US move "unfortunate" and has reiterated that India will continue to protect its national interests.
Parliamentary Proceedings
In addition to trade-related discussions, the Indian Parliament has been actively involved in legislative matters. During the monsoon session, which is currently underway, the Lok Sabha passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2025, and the Indian Ports Bill, 2025. The Rajya Sabha passed the National Sports Governance Bill and the National Anti-Doping Bill, and returned the Income Tax Bill, 2025, and the Taxation Laws (Amendment) Bill, 2025 to the Lok Sabha for further deliberation. The Lok Sabha also approved a motion to extend the tenure of the Joint Parliamentary Committee reviewing the 'One Nation, One Election Bill'. Both houses have been adjourned until August 18, 2025.
