India and Cambodia have agreed to deepen bilateral trade and investment cooperation, with both sides identifying new opportunities in areas ranging from digital payments and pharmaceuticals to agriculture, banking and tourism.
The agreement came during the Third Meeting of the India-Cambodia Joint Working Group on Trade and Investment (JWGTI) held on August 24, 2026, in Phnom Penh. The meeting was jointly chaired by Shri Amit Verma, Joint Secretary in the Department of Commerce, Ministry of Commerce and Industry, India, and Mr. Long Kemvichet, Director General of International Trade, Ministry of Commerce, Cambodia.
Bilateral Trade Records Strong Growth
The two countries noted a significant rise in bilateral commerce during the meeting. Trade between India and Cambodia increased by more than 36 per cent to USD 406.78 million in 2025-26, compared with USD 299 million in the preceding financial year.
The positive trend continued into the current financial year, with bilateral trade registering 63.25 per cent year-on-year growth during April-June 2026.
Cambodia is presently India’s eighth-largest trading partner within ASEAN and accounts for around 0.31 per cent of India’s total trade with the regional grouping. Both sides observed that the relatively modest share also indicates considerable scope to expand commercial engagement.
Focus on Trade Diversification
The JWGTI discussions explored measures to broaden the range of goods and services traded between the two countries. Areas identified for greater cooperation included traditional medicine, e-governance solutions and recognition of the Indian Pharmacopoeia.
The countries also discussed reconciling trade statistics to improve the understanding of bilateral commerce. Sharing information regarding major trade fairs and business delegations was another area highlighted as a means of creating greater opportunities for exporters and businesses.
Cooperation in agriculture and market access was also reviewed, along with possibilities for increasing trade in dyes and pigments. The two sides further exchanged views on strengthening collaboration in the banking and insurance sectors.
UPI-KHQR Linkage Strengthens Digital Connectivity
The successful introduction of UPI acceptance at KHQR-enabled merchants in Phnom Penh on June 2, 2026, was welcomed by both delegations.
The two sides discussed the next stage of the digital payments partnership, under which Cambodian payment applications would be enabled to scan UPI QR codes in India. Once operational, the arrangement is expected to make digital payments more convenient for Cambodian visitors travelling in India by allowing them to use UPI-enabled merchant terminals.
The development is seen as an important step towards strengthening financial and digital connectivity between the two countries.
Customs and Investment Cooperation
India and Cambodia also welcomed their agreement on a Memorandum of Understanding on Customs Cooperation and discussed steps towards its early signing. The proposed agreement is expected to promote greater consistency and efficiency in customs procedures and facilitate smoother movement of goods.
Investment relations were another key component of the discussions. Both sides welcomed progress towards completing the Bilateral Investment Treaty (BIT) and agreed on the importance of moving towards its early signing.
Business Community Seeks Greater Market Access
On the sidelines of the JWGTI meeting, Shri Amit Verma held discussions with H.E. Tith Rithipol, Under Secretary of State, Cambodia. The talks covered bilateral trade and investment, pharmaceutical cooperation and the UPI-KHQR digital payments initiative.
Verma also met representatives of the Indian Business Chamber in Cambodia (IBCC). Discussions focused on accelerating bilateral trade agreement-related deliberations, encouraging Indian investment in Cambodia and identifying priority sectors.
Education, healthcare, information technology, agriculture and tourism were among the proposed areas for stronger business engagement. The discussions also explored an “Invest in Cambodia” roadshow in India, aimed at presenting Cambodia as a potential manufacturing and production base for Indian companies seeking access to ASEAN markets.
A mechanism involving IBCC, FICCI and JBC was also discussed to facilitate private-sector feedback to the JWGTI.
Next Meeting to Be Held in India
The latest JWGTI meeting marked the third such interaction since the group was institutionalised. Both countries reaffirmed their commitment to expanding economic ties and unlocking new avenues for trade and investment.
The next meeting of the India-Cambodia Joint Working Group on Trade and Investment is scheduled to be held in India in 2027, providing another platform to review progress and identify further areas of bilateral economic cooperation.
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Author: Shivam
Shivam Dwivedi is a senior journalist with extensive experience in research-driven journalism, policy communication, and multi-platform storytelling. His areas of interest include international relations, defence, science & technology, education, urban development, agriculture, spirituality, and environmental sustainability. His work focuses on in-depth analysis, public discourse, and impactful narratives across governance and development sectors, with a strong commitment to the Sustainable Development Goals (SDGs). Contact: [email protected]
