India and Cambodia successfully concluded the 3rd Joint Working Group on Trade and Investment (JWGTI) meeting in Phnom Penh on August 24.
The meeting was co-chaired by Amit Verma, Joint Secretary, Department of Commerce, Ministry of Commerce and Industry, India, and Long Kemvichet, Director General of International Trade, Ministry of Commerce, Cambodia.
Editorial Insight
Key Highlights
Important points readers should notice.
The number is still small, but the direction is encouraging: At $406.78 million, India-Cambodia trade is modest compared with India's larger ASEAN partnerships. But the 36%+ annual growth shows that the relationship has room to scale.
Digital payments could change the equation: UPI-KHQR connectivity is more than a convenience for tourists. Easier digital payments can gradually reduce friction for small businesses, travellers and cross-border commercial activity.
Investment may become the next big step: Trade alone cannot transform the relationship. Early completion of the Bilateral Investment Treaty could provide greater confidence for companies considering long-term investments.
ASEAN access makes Cambodia strategically relevant: For Indian companies, Cambodia can potentially serve not only as a domestic market but also as part of a wider Southeast Asian production and supply-chain strategy.
Both sides noted strong recent momentum in bilateral trade. Trade between India and Cambodia increased by more than 36% to $406.78 million in 2025-26, compared with $299 million during the previous financial year. The momentum continued into the current financial year, with bilateral trade during April-June 2026 recording 63.25% year-on-year growth.
The two countries discussed ways to diversify trade through cooperation in traditional medicine, e-governance, pharmaceuticals, agriculture, dyes and pigments, banking and insurance. Market access issues and reconciliation of trade statistics were also discussed, along with greater information-sharing on trade fairs and business delegations.
An important area of discussion was investment. India and Cambodia welcomed progress towards completing their Bilateral Investment Treaty and agreed on the need for its early signature. The treaty is intended to provide a framework for protecting and promoting bilateral investments.
Editorial Analysis
Why This Matters
The development matters because India is trying to deepen economic engagement across Southeast Asia while Indian companies increasingly look for new markets and production networks. For Cambodia, greater Indian investment could bring capital, technology and access to one of Asia's largest consumer markets. For India, stronger Cambodia ties can support wider ASEAN connectivity, trade diversification and Indo-Pacific economic engagement.
The two sides also discussed the early signing of a Customs Cooperation MoU, which is expected to bring greater uniformity to customs procedures and facilitate trade.
Digital payments have also emerged as a new area of cooperation. Both sides welcomed the launch of UPI acceptance at KHQR-enabled merchants in Phnom Penh on June 2, 2026, and discussed the next phase, under which Cambodian payment applications could scan UPI QR codes in India.
On the sidelines of the meeting, Amit Verma also discussed bilateral trade, investment, pharmaceuticals and the UPI-KHQR linkage with Cambodian officials and members of the Indian Business Chamber in Cambodia. An “Invest in Cambodia” roadshow in India was also discussed to attract Indian businesses looking to use Cambodia as a potential production base for access to ASEAN markets.
NationPath Editorial View:
India-Cambodia trade does not yet have the scale of India's major ASEAN partnerships, but that may actually be the opportunity. The 36% growth, rising digital-payment connectivity and movement towards an investment treaty suggest that the relationship is beginning to move beyond traditional diplomatic goodwill. The next challenge is simple: convert agreements and meetings into factories, investments, exports and jobs.
