India-Cambodia Trade Jumps 36% to $406.78 Million as Both Sides Push Investment and Digital Payments Linkages

India and Cambodia have agreed to deepen trade and investment cooperation across pharmaceuticals, agriculture, digital payments, banking, insurance and other priority sectors as bilateral commerce continues to expand rapidly. The discussions took place during the third meeting of the India-Cambodia Joint Working Group on Trade and Investment (JWGTI) in Phnom Penh on August 24, 2026.

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

Bilateral trade between the two countries increased by more than 36% to $406.78 million in 2025-26, compared with $299 million in the previous financial year. The momentum has continued into the current fiscal year, with trade during April-June 2026 recording 63.25% year-on-year growth.

Cambodia is currently India’s eighth-largest trading partner within ASEAN, although it accounts for only around 0.31% of India’s total trade with the grouping. The relatively small share, combined with the recent acceleration in commerce, has created significant scope for further expansion.

Both sides discussed measures to diversify the trade relationship, including cooperation in traditional medicine, recognition of the Indian Pharmacopoeia, e-governance systems, reconciliation of bilateral trade statistics and greater exchange of information on major trade fairs and business delegations.

Digital payments emerged as another important area of cooperation. The two countries welcomed the launch of UPI acceptance at KHQR-enabled merchants in Phnom Penh on June 2, 2026. They also discussed the next stage of the payments linkage, under which Cambodian payment applications could eventually scan UPI QR codes in India, allowing Cambodian visitors to make payments more easily at UPI-enabled merchants.

India and Cambodia also welcomed progress on a proposed Customs Cooperation Memorandum of Understanding and discussed its early signing. The agreement is expected to improve coordination and bring greater consistency to customs procedures affecting bilateral trade.

Market access and cooperation in agriculture were also discussed, alongside opportunities to increase trade in dyes and pigments and strengthen ties between the two countries’ banking and insurance sectors. Both sides additionally welcomed progress toward completing a Bilateral Investment Treaty and expressed support for its early signature.

Business engagement formed an important part of the discussions. Indian officials met representatives of the Indian Business Chamber in Cambodia to examine ways of accelerating trade discussions and facilitating greater Indian investment. Education, healthcare, information technology, agriculture and tourism were among the sectors identified as potential priorities.

The two sides also discussed organising an “Invest in Cambodia” roadshow in India, aimed at presenting Cambodia as a manufacturing and production base for Indian companies seeking wider access to ASEAN markets. A mechanism involving business organisations such as IBCC, FICCI and other industry bodies was also proposed to provide private-sector feedback to the JWGTI process.

The third JWGTI meeting reflected the growing economic engagement between India and Cambodia as both countries seek to move beyond their relatively modest existing trade base. With bilateral commerce already accelerating, greater connectivity in digital payments, investment protection, customs cooperation and private-sector participation could provide the foundation for a substantially broader economic partnership.

The next India-Cambodia JWGTI meeting is scheduled to be held in India in 2027.

Source: PIB:https://www.pib.gov.in/PressReleaseDetail.aspx?PRID=2302766&reg=48&lang=1