New Delhi, June 20 -- India's exports to the ASEAN (Association of Southeast Asian Nations) bloc fell by 5.7 per cent in FY25 to USD 38.96 billion, while imports rose by 5.6 per cent to USD 84.16 billion, widening the trade deficit to USD 45.2 billion.

In comparison, the deficit stood at just USD 8 billion when the ASEAN-India Trade in Goods Agreement (AITIGA) was implemented in 2010.

Despite the free trade agreement, more than half of India's exports to ASEAN are taking place outside the pact's framework.

Exporters are paying regular import duties instead of availing the lower or zero-duty benefits under AITIGA, highlighting serious underutilisation of the agreement, which currently sees usage well below 50 per cent.

To address this,...