Since the early 2000s, India has experienced a growing trade deficit with ASEAN, with imports exceeding exports by more than $6 billion in 2007-2008.  There are concerns that gradual tariff liberalization and an increase in imported products into India could threaten several sectors of the economy, particularly the plantation sector, some manufacturing industries and the seafood industry.  As the dominant exporter of light industrial products, ASEAN has competitive tariffs that make it difficult for India to access the industrial market in ASEAN countries.  In addition, Indonesia and India signed a Memorandum of Understanding in 2005 to set up a Joint Study Group (JSG) to examine the positive aspects that would result from the signing of a Comprehensive Economic Cooperation Agreement (ECSC). The ECSC is intended to be an agreement covering economic cooperation and trade in goods and services and investment, which would lead to a higher level of mutually beneficial economic cooperation between the two countries. The JSG predicted that the ECSC would increase total exports between India and Indonesia to $17.5 billion in 2020, with exports from India to $7.8 billion and exports from Indonesia to $9.7 billion. Since India granted Vietnam « most-favoured-nation » status in 1975, trade relations have been strong. In 1978, the two countries signed a bilateral trade agreement, followed by the Bilateral Agreement for the Promotion and Protection of Investments (BIPPA) on March 8, 1997. Then, in 2003, the two countries announced a joint declaration on comprehensive cooperation in addition to negotiations on a free trade agreement. Recognizing this trend and recognizing the economic potential of closer ties, the two sides recognized the opportunities to deepen trade and investment relations and agreed to negotiate a framework agreement to pave the way for the establishment of an ASEAN-India Free Trade Area (FTA).  Coupled with ASEAN`s continued rise to become a regional economic center, these figures, while still a bit low, are poised to grow thanks to the free trade agreements (FTAs) signed between India and ASEAN. Before the signing of the agreement, Kerala`s Chief Minister V.S. Achuthanandan led a delegation to the Indian Prime Minister to protest the free trade agreement.
The State of Kerala is a major exporter in the domestic export of plantation products. He fears that cheap imports of rubber, coffee and fish will reduce domestic production and negatively affect farmers and, ultimately, their economies.  Kerala has already experienced a flood of its market with cheap imports under the 2006 South Asia Free Trade Agreement. Cheap coconuts from Sri Lanka and palm oil from Malaysia have been hampering coconut cultivation in Kerala ever since.  India-Cambodia relations gained momentum in 1981 when India officially recognized the new Cambodian government and opened an embassy in Phnom Penh. In modern times, efforts have been made to expand their cooperation through institutional capacity-building, personnel development, infrastructure development, security and defence. In addition, India and Cambodia have strengthened their bilateral cooperation through increased interaction in regional and international for a. Over the years, ECSC negotiations have progressed with discussions on tariff reductions and the removal of non-trade barriers for various products of interest, including palm oil products from Indonesia, as well as pharmaceuticals and buffalo meat from India. .