India–Cambodia trade up 36% to $406.78 million

India-Cambodia trade talks: what happened?

Cambodia is a small ASEAN economy, but trade with India is growing fast. Cambodia’s share of India’s ASEAN trade is only 0.31 per cent, which leaves plenty of room to grow. The working group met to find new areas of trade.

• The April-June 2026 quarter saw a further 63.25 per cent year-on-year growth.
• UPI acceptance at KHQR-enabled merchants in Phnom Penh began on 2 June 2026; the next phase would let Cambodian apps scan UPI QR codes in India.
• Both sides welcomed agreement on a MoU on Customs Cooperation and sought early signing.
• They agreed to sign the Bilateral Investment Treaty early.
• Other areas: traditional medicine, e-governance, Indian pharmacopoeia, dyes and pigments, banking and insurance.

What did Indian business propose?

• 5 to 7 priority sectors, including education, healthcare, IT, agriculture and tourism.
• An “Invest in Cambodia” roadshow in India, with Cambodia as a production base for ASEAN markets.

Why does India-Cambodia trade talks matter?

• Act East: Deeper ties with a smaller ASEAN partner.
• Digital payments: UPI-KHQR link extends India’s payment system abroad.

What can Prelims ask on India-Cambodia trade talks?

• India-Cambodia trade 2025-26: $406.78 million, up over 36%.
• Cambodia: India’s 8th largest trade partner in ASEAN (0.31% of India-ASEAN trade).
• KHQR: Cambodia’s QR payment system linked with UPI (June 2026).