India, Cambodia agree to strengthen trade ties

New Delhi, Aug 24 (IANS) India and Cambodia on Monday agreed to diversify and deepen bilateral trade through cooperation in traditional medicine, e-governance modules, recognition of the Indian pharmacopoeia, trade statistics reconciliation, and strengthening the digital payments system between the two countries, at the third meeting of the Joint Working Group on Trade and Investment (JWGTI) held in Phnom Penh. 

The meeting was co-chaired by Amit Verma, Joint Secretary, Department of Commerce, and Long Kemvichet, Director General of International Trade, Ministry of Commerce, Cambodia.

Both sides noted the encouraging momentum in bilateral trade, which grew by over 36 per cent to reach $406.78 million in 2025-26, up from $299 million in the previous financial year, with the April-June 2026 quarter recording a further 63.25 per cent year-on-year growth. Cambodia is currently India's 8th largest trading partner in ASEAN, accounting for 0.31 per cent of India's total trade with the bloc, reflecting significant headroom for growth.

The meeting deliberated upon ways to diversify and deepen trade, including through cooperation and collaboration in traditional medicine, e-governance modules, recognition of Indian pharmacopoeia, trade statistics reconciliation, and the sharing of information on flagship trade fairs and business delegations.

The meeting also welcomed the successful launch of UPI acceptance at KHQR-enabled merchants in Phnom Penh on June 2 and discussed the next phase of enabling Cambodian payment applications to scan UPI QR codes in India, which would allow Cambodian travellers to use UPI-enabled terminals in India seamlessly.

The meeting welcomed the agreement between both sides on the MoU on Customs Cooperation and discussed early signing, which would bring uniformity in customs procedures.

The two sides further discussed cooperation in agriculture and market access issues, expanding trade in dyes and pigments, and banking and insurance sector cooperation. The two sides also welcomed the discussion for completion of the bilateral investment treaty between India and Cambodia and agreed that it should be formally signed at the earliest.

This was the third meeting of the JWGTI since its institutionalisation and the meeting reaffirmed the depth and growing potential of the India-Cambodia trade and economic partnership. The next meeting of the JWGTI will be held in India in 2027.

On the sidelines of the India–Cambodia JWGTI meeting, Amit Verma had a productive call with Tith Rithipol, Under Secretary of State, Cambodia. Discussions covered strengthening bilateral trade and investment, cooperation in pharmaceuticals, and the successful UPI–KHQR digital payments linkage. Both sides reiterated their shared commitment to deepening the partnership between the countries.

Verma also met members of the Indian Business Chamber in Cambodia (IBCC). Discussions focused on accelerating bilateral trade agreement discussions, facilitating Indian investment in Cambodia, and identifying 5–7 priority sectors including education, healthcare, IT, agriculture and tourism.

The meeting also discussed an “Invest in Cambodia” roadshow in India, positioning Cambodia as a production base for Indian companies seeking access to ASEAN markets, and establishing a mechanism for the business chambers to provide private-sector feedback to the JWGTI.

--IANS

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