India and Cambodia are expanding bilateral trade and investment cooperation, with strong growth in trade, digital payments, pharmaceuticals, customs and other priority sectors.
India-Cambodia Trade is gaining momentum as India and Cambodia work to expand bilateral trade and investment. The two countries have identified traditional medicine, e-governance, pharmaceuticals, digital payments, agriculture, banking, insurance and customs as key areas for cooperation.
The agreement was reached at the third meeting of the Joint Working Group on Trade and Investment (JWGTI) in Phnom Penh.
India-Cambodia Trade Records Strong Growth
Bilateral trade between India and Cambodia rose by more than 36% to $406.78 million in 2025-26. Trade stood at around $299 million in the previous financial year.
The growth has continued in the current financial year. Bilateral trade increased by 63.25% year-on-year during April-June 2026. The figures point to stronger business activity and growing opportunities for companies in both markets.
Cambodia is currently India’s eighth-largest trading partner in ASEAN.
India-Cambodia Trade Expands Digital Payment Cooperation
India and Cambodia are also strengthening cooperation in digital payments.
Both sides discussed the expansion of the UPI-KHQR payment linkage. UPI acceptance at KHQR-enabled merchants in Phnom Penh was launched on June 2.
The next phase will allow Cambodian payment applications to scan UPI QR codes in India. This will make digital payments easier for Cambodian travellers and support smoother cross-border transactions.
Investment and Customs Cooperation Gain Focus
The two countries reviewed progress on the MoU on Customs Cooperation. They supported its early signing to improve coordination and facilitate trade.
India and Cambodia also backed the early completion of a bilateral investment treaty. The agreement could provide greater clarity and confidence for businesses looking to invest in each market.
The discussions also covered market access, dyes and pigments, pharmaceuticals and agriculture.
Priority Sectors Open New Business Opportunities
The JWGTI meeting identified several sectors with potential for greater cooperation. These include education, healthcare, information technology and tourism.
The two countries also discussed an “Invest in Cambodia” roadshow in India. The initiative could help Cambodian businesses attract Indian investment and give Indian companies greater access to ASEAN markets.
India-Cambodia Trade Outlook
The latest discussions show a broader focus on the India-Cambodia economic partnership. Rising trade, digital payment integration and investment cooperation are creating new opportunities for businesses.
With stronger customs coordination and greater sectoral engagement, both countries are looking to build a more diverse and business-friendly trade relationship.
Image Source: The Hawk
