The Ministry of Commerce and Industry held the third meeting of the India-Cambodia Joint Working Group on Trade and Investment (JWGTI) in Phnom Penh on 24 August 2026. The meeting brought together Indian and Cambodian trade officials to discuss ways to expand economic ties between the two countries. Trade between India and Cambodia has been growing sharply in recent months.
What happened at the meeting
India-Cambodia bilateral trade reached USD 406.78 million in the financial year 2025-26, representing growth of over 36 percent compared to USD 299 million in the previous year. In the April-June 2026 quarter alone, trade grew by 63.25 percent year-on-year. Cambodia ranks as India’s 8th largest trading partner within ASEAN, though it accounts for only 0.31 percent of India’s total trade with the bloc.
Both sides identified several areas for deeper cooperation:
- Traditional medicine and recognition of Indian pharmacopeia standards
- E-governance systems and trade statistics alignment
- A Memorandum of Understanding (MoU) on customs cooperation to standardise procedures
- Agriculture and market access for Indian dyes and pigments
- Banking and insurance sector partnerships
The meeting also welcomed the launch of UPI payment acceptance at KHQR-enabled merchants in Phnom Penh on 2 June 2026. Officials discussed enabling Cambodian payment apps to scan UPI QR codes, allowing Cambodian travellers to use UPI terminals in India. The two countries agreed to move forward with signing a Bilateral Investment Treaty.
On the sidelines of the meeting, the Indian trade official held discussions with Cambodian government representatives and Indian business groups operating in Cambodia. These conversations focused on pharmaceuticals cooperation, identifying priority sectors for investment including education, healthcare, IT, agriculture and tourism, and planning an “Invest in Cambodia” roadshow in India.
What this means for you
If you do business with Cambodia or plan to, expect smoother customs procedures once the MoU is signed. Indian exporters of traditional medicines, pharmaceuticals, dyes and agricultural products may find new opportunities as the two countries work on market access. If you travel to Cambodia, UPI payments should become more seamless once the payment system upgrade is complete. The next JWGTI meeting will be held in India in 2027.