Recognizing this development and recognizing the economic potential for closer ties, both sides recognized opportunities to deepen trade and investment relations and agreed to negotiate a framework agreement to pave the way for the creation of an ASEAN-India Free Trade Area (FTA).  Although the ASEAN-India Free Trade Agreement has many advantages, India is concerned that the agreement will have several negative effects on the economy. As has already been said, both regions are trying to reduce their tariffs on a large portion of their traded products. This will allow them to increase market access for their products. However, it is criticized that India is not experiencing as large an increase in market access to ASEAN countries as ASEAN in India.  ASEAN`s economies are largely export-oriented and have high export rates to GDP (in 2007, Malaysia had a rate above 100%).  Given the above, as well as the global financial crisis and India`s expansionary domestic market, ASEAN countries are eager to consider India as the country of origin for its exports.  Prior to the signing of the agreement, Kerala`s Chief Minister, V.S. Achuthanandan, led a delegation to the Indian Prime Minister to protest against the free trade agreement. The state of Kerala is a major exporter of domestic exports of plantation products. It is concerned that cheap imports of rubber, coffee and fish will reduce local production and ultimately harm farmers and 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 since hampered the cultivation of Kerala coconut.  The ASEAN-India Free Trade Area (AIFTA) is a free trade area between the ten member states of the Association of South Asian Nations (ASEAN) and India. The initial framework agreement was signed on 8 October 2003 in Bali, Indonesia.  and the final agreement was August 13, 2009 The Free Trade Area came into force on January 1, 2010.   India hosted the last ASEAN-India Memorial Summit in New Delhi on 26 January 2018. In fiscal year 2017/18, bilateral trade between Indo and ASEAN increased by nearly 14% to $81.3 billion. India`s imports from ASEAN totaled $47.13 billion, while its exports to ASEAN totaled $34.2 billion.  In tourism, the number of visitors from ASEAN to India rose to 277,000 in 2006, while the number of visitors arriving from India to ASEAN in 2008 was 1.985 million. At the sixth ASEAN-India Summit in Singapore on 21 November 2007, India proposed to fly one million tourists from ASEAN to India by 2010. At the second meeting of the ASEAN and India Tourism Ministers (ATM-India), held in Bandar Seri Begawan on 25 January 2010 India`s proposal to develop a cooperation agreement between ASEAN and India for tourism was welcomed and the ASEAN and India WORKING Group was invited to continue the study and preparation of the draft agreement. Ministers also supported the creation of the ASEAN Tourism Chapter in Mumbai as an important common platform for ASEAN national tourism organizations (NGOs) to market Southeast Asia to Indian consumers, while fostering mutual awareness between ASEAN member states and India.