Why Cambodia–India Trade Matters in 2025
Trade relations between Cambodia and India have quietly but steadily strengthened over the past decade, evolving from modest exchanges into a strategically important bilateral partnership. In 2025, Cambodia–India trade stands at a critical inflection point, shaped by shifting global supply chains, ASEAN–India cooperation, rising consumer demand in India, and Cambodia’s growing role as a manufacturing and export hub in Southeast Asia.
For policymakers, investors, exporters, and business leaders, understanding Cambodia–India trade volume in 2025 is no longer optional—it is essential. India is one of the world’s fastest-growing major economies, while Cambodia continues to diversify its export base beyond traditional markets. Together, these two countries present expanding commercial opportunities across textiles, agriculture, pharmaceuticals, electronics, and logistics.
This article provides a comprehensive and data-driven analysis of Cambodia–India trade volume in 2025. It examines the latest available trade data, identifies growth trends, explores key traded products, analyzes policy and institutional support, highlights challenges, and outlines future opportunities for businesses and investors. Whether you are researching trade statistics, exploring export opportunities, or tracking regional economic trends, this guide offers a complete and up-to-date perspective.
Overview of Cambodia–India Trade Relations
Historical Context of Bilateral Trade
Cambodia and India share long-standing cultural and diplomatic ties dating back centuries, but modern trade relations began gaining momentum only in the late 20th century. Following Cambodia’s economic liberalization in the 1990s and its integration into ASEAN in 1999, bilateral trade with India gradually expanded.
Initially, trade volumes were relatively small, driven primarily by basic commodities and limited industrial goods. Over time, however, improved diplomatic engagement, business missions, and participation in regional trade frameworks created a foundation for deeper economic cooperation.
Role of ASEAN–India Relations
Cambodia’s membership in ASEAN has been a key catalyst for expanding trade with India. The ASEAN–India Free Trade Area (AIFTA), which came into effect in phases from 2010 onward, significantly reduced tariffs on thousands of goods. This agreement improved market access for Cambodian exports while making Indian products more competitive in Cambodia.
India’s Act East Policy further strengthened engagement with Southeast Asia, positioning Cambodia as part of India’s broader regional trade and investment strategy. As a result, Cambodia–India trade increasingly aligns with regional supply chains rather than remaining a purely bilateral exchange.
Trade Relations Entering 2025
By 2025, Cambodia–India trade relations are characterized by:
- Expanding trade volumes year-on-year
- A growing trade surplus in Cambodia’s favor
- Increased institutional and private-sector cooperation
- A shift toward higher-value and diversified exports
These dynamics set the stage for a deeper examination of trade performance in 2025.
Cambodia–India Trade Volume in 2025: Latest Available Data
Overall Trade Performance
While final annual figures for 2025 may not be fully consolidated at the time of writing, available partial data and trend analysis indicate that Cambodia–India trade volume continues to grow steadily in 2025.
In recent years, bilateral trade crossed the US$450–500 million mark, reflecting consistent growth from earlier years when trade volumes hovered below US$300 million. Provisional 2025 data suggests that this upward trajectory remains intact, supported by strong Cambodian export performance and sustained Indian demand.
Cambodia’s Exports to India in 2025
Cambodian exports to India account for the larger share of bilateral trade. In 2025, exports are driven by:
- Manufactured garments and footwear
- Agricultural and agro-processing products
- Light industrial and electrical components
Export growth reflects Cambodia’s improved manufacturing capacity, preferential tariff access under AIFTA, and India’s large and increasingly diversified consumer market.
India’s Exports to Cambodia in 2025
India’s exports to Cambodia, while smaller in value, remain critical to Cambodia’s industrial development. Key import categories include:
- Pharmaceuticals and medical products
- Machinery and industrial equipment
- Chemicals and raw materials
These imports support Cambodia’s manufacturing, healthcare, and infrastructure sectors, reinforcing the complementary nature of bilateral trade.
Trade Balance and Economic Implications
Cambodia continues to maintain a trade surplus with India in 2025. While this benefits Cambodia’s export earnings, it also highlights opportunities for India to expand its export base and investment footprint within Cambodia.
Key Products Traded Between Cambodia and India
Cambodia’s Major Exports to India
1. Textiles, Apparel, and Footwear
The textile and garment sector remains Cambodia’s largest export category to India. Although India itself is a major textile producer, demand for specific apparel segments, intermediate inputs, and competitively priced finished goods sustains import flows from Cambodia.
Key drivers include:
- Cost-competitive manufacturing
- Established supply chains
- Preferential tariffs under ASEAN–India trade arrangements
2. Agricultural and Agro-Processed Products
Cambodia’s agricultural exports to India have grown in importance, particularly:
- Cashew nuts
- Rice and rice-based products
- Rubber and vegetable oils
India’s large population and rising food demand make it a promising market for Cambodian agricultural producers, especially as Cambodia improves quality standards and processing capacity.
3. Electrical and Light Industrial Goods
Although still a smaller segment, exports of electrical components and light industrial products are expanding as Cambodia moves up the manufacturing value chain.
India’s Major Exports to Cambodia
1. Pharmaceuticals and Medical Supplies
India is one of the world’s leading producers of generic pharmaceuticals, making it a key supplier to Cambodia’s healthcare system. Affordable Indian medicines play a crucial role in improving healthcare access across Cambodia.
2. Machinery and Equipment
Industrial machinery, construction equipment, and manufacturing inputs from India support Cambodia’s infrastructure development and industrial expansion.
3. Chemicals and Raw Materials
India exports various chemicals and intermediate goods used in Cambodia’s garment, agriculture, and manufacturing sectors.
Growth Trends Shaping Cambodia–India Trade in 2025
1. Rising Indian Consumer Demand
India’s expanding middle class and rapid urbanization have increased demand for imported goods, including apparel, food products, and consumer items. Cambodian exporters benefit from this trend by targeting niche segments where cost competitiveness and quality align.
2. Supply Chain Diversification in Asia
Global manufacturers are diversifying supply chains to reduce overreliance on single-country production hubs. Cambodia has emerged as an attractive alternative manufacturing base, indirectly boosting exports to India as part of regional supply networks.
3. Cambodia’s Export Diversification Strategy
The Cambodian government has prioritized export diversification to reduce dependence on traditional markets. India represents a strategic non-Western export destination, aligning with Cambodia’s long-term trade resilience strategy.
4. Increasing Business-to-Business Engagement
Trade fairs, business forums, and joint chambers of commerce have facilitated direct connections between Cambodian exporters and Indian importers, accelerating trade growth.
Policy, Agreements, and Institutional Support
ASEAN–India Free Trade Agreement (AIFTA)
AIFTA remains the cornerstone of Cambodia–India trade, providing:
- Reduced tariffs on thousands of products
- Improved market access for Cambodian exporters
- Greater predictability for long-term trade planning
Cambodia–India Joint Business Council
The establishment of joint business councils has strengthened private-sector cooperation by:
- Addressing trade barriers
- Facilitating market entry
- Encouraging joint ventures and investment
Government and Diplomatic Support
High-level diplomatic engagement and trade missions continue to reinforce economic cooperation, creating a favorable environment for sustained trade growth.
Logistics, Connectivity, and Trade Infrastructure
Shipping and Maritime Routes
Most Cambodia–India trade relies on maritime shipping through regional ports. Improvements in port infrastructure and logistics efficiency have reduced costs and transit times, making trade more competitive.
Air Connectivity and Trade Facilitation
Expanded air routes between India and Cambodia support business travel, high-value cargo, and trade promotion activities, indirectly strengthening bilateral commerce.
Customs and Trade Facilitation Reforms
Ongoing reforms in customs procedures, digital documentation, and trade facilitation help streamline cross-border transactions, benefiting exporters and importers alike.
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Challenges and Constraints in Cambodia–India Trade
1. Trade Imbalances
While Cambodia’s trade surplus reflects export strength, it also signals underutilized potential for Indian exporters and investors.
2. Non-Tariff Barriers
Differences in standards, certification requirements, and regulatory procedures can pose challenges for businesses on both sides.
3. Market Competition
Cambodian exporters face competition from other ASEAN countries exporting similar products to India, particularly Vietnam and Indonesia.
4. Infrastructure and Logistics Costs
Despite improvements, logistics costs remain a constraint for certain product categories, especially low-margin agricultural exports.
Opportunities for Businesses and Investors
High-Growth Export Opportunities for Cambodia
- Processed agricultural products
- Value-added textiles and garments
- Light manufacturing and electronics
Opportunities for Indian Businesses
- Investment in Cambodia’s manufacturing sector
- Pharmaceutical and healthcare partnerships
- Infrastructure and logistics development
SME Participation in Bilateral Trade
Small and medium-sized enterprises stand to benefit from:
- Simplified trade procedures
- Digital trade platforms
- Cross-border partnerships
Future Outlook: What to Expect Beyond 2025
Looking beyond 2025, Cambodia–India trade is expected to:
- Continue growing at a steady pace
- Become more diversified and value-added
- Benefit from deeper regional economic integration
Potential developments such as enhanced trade agreements, increased investment flows, and improved logistics connectivity could further accelerate bilateral trade.
Conclusion: The Road Ahead for Cambodia–India Trade
Cambodia–India trade volume in 2025 reflects a maturing and increasingly strategic economic relationship. Driven by strong export performance, supportive trade policies, and evolving regional dynamics, bilateral trade continues to expand in both scale and sophistication.
For businesses, investors, and policymakers, the opportunities are clear. By leveraging trade agreements, investing in value-added sectors, and strengthening institutional cooperation, Cambodia and India can unlock even greater economic potential in the years ahead.
📚 References
- UN Comtrade Database – Official international trade statistics
https://comtradeplus.un.org/ - Trading Economics – Cambodia Exports to India
https://tradingeconomics.com/cambodia/exports/india - Ministry of Commerce, Kingdom of Cambodia – Trade and export data
https://www.moc.gov.kh/ - Ministry of External Affairs, Government of India – India–ASEAN and bilateral relations
https://www.mea.gov.in/ - ASEAN Secretariat – ASEAN–India Free Trade Area (AIFTA)
https://asean.org/ - Phnom Penh Post – Cambodia–India Trade Coverage
https://www.phnompenhpost.com/business - The Economic Times (India) – Trade & Regional Economy
https://economictimes.indiatimes.com/ - Asian Development Bank (ADB) – Regional Trade & Economic Outlooks
https://www.adb.org/ - World Bank – Cambodia Trade & Economic Indicators
https://www.worldbank.org/en/country/cambodia