India-Cambodia Trade is gaining momentum as both countries expand cooperation across pharmaceuticals, traditional medicine, digital payments, e-governance, agriculture and investment. Bilateral trade rose by more than 36% to $406.78 million in 2025-26, while trade during April-June 2026 increased 63.25% year-on-year.
Key Highlights: India-Cambodia Trade rose 36% to $406.78 million in 2025-26, while bilateral trade grew 63.25% year-on-year in April-June 2026. Both countries are expanding UPI-KHQR digital payment connectivity and working towards an early Customs Cooperation MoU and bilateral investment treaty. Cooperation is also growing across pharmaceuticals, agriculture, healthcare, IT, education and tourism.
India-Cambodia Trade Shows Strong Growth
India and Cambodia have agreed to deepen and diversify bilateral trade and investment. The decision came during the third meeting of the Joint Working Group on Trade and Investment (JWGTI) in Phnom Penh.
Bilateral trade reached $406.78 million in 2025-26, up more than 36% from $299 million in the previous financial year. The growth continued in the first quarter of 2026-27. Trade between the two countries increased 63.25% year-on-year during April-June 2026.
Cambodia is currently India’s eighth-largest trading partner in ASEAN. The latest figures point to growing opportunities for businesses in both markets.
India-Cambodia Trade Expands Digital Payment Cooperation
India and Cambodia are also strengthening cooperation in digital payments through the UPI-KHQR 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.
The move is expected to simplify cross-border payments and improve the experience for Cambodian visitors travelling to India.
Investment and Customs Cooperation Gain Focus
Both countries discussed faster progress on the MoU on Customs Cooperation. They also called for the early completion of the bilateral investment treaty.
The proposed measures could make cross-border trade and investment easier for businesses. They could also improve cooperation between customs authorities and create a more predictable trade environment.
The discussions also covered market access, dyes and pigments, pharmaceuticals and agriculture.
New Opportunities for Businesses
India and Cambodia identified several sectors for deeper cooperation. These include education, healthcare, IT, tourism, pharmaceuticals and agriculture.
The two sides also proposed an “Invest in Cambodia” roadshow in India. The initiative could help attract Indian companies looking to expand into Cambodia and gain access to wider ASEAN markets.
The latest JWGTI meeting highlights the strengthening India-Cambodia Trade relationship. Growing trade, digital payment connectivity and investment cooperation could create new opportunities for companies across both markets.
Image Source: PIB
