The ASEAN Market Is Open for Indian Business: StartupFlora Leads MSMEs Toward Global Growth

Say No to Tariffs – It’s Time to Go Global!

"Abhi best time hai Indian businesses ke liye globally expand karne ka".

The ASEAN market which includes countries like Malaysia, Singapore, Indonesia, Thailand, and Vietnam is now wide open for Indian startups and MSMEs. With lower tariffs, faster delivery, and simpler trade policies, Indian businesses can now export products with 0% or minimal taxes and earn higher profits.

According to recent data, India-ASEAN trade has crossed $120 billion, and this number is growing every year. This growth is not just a statistic it’s a sign that Indian products are gaining strong demand in Southeast Asia. From technology to textiles and manufacturing to food exports, the opportunities are endless.

If you’ve been waiting for the right time to expand globally, this is it.

Why ASEAN Is the Best Export Market for Indian Businesses?

1. Low or Zero Tariffs

The ASEAN Free Trade Agreement (AFTA) has made it easier for Indian exporters to trade across Southeast Asian countries with minimal customs duty. This means your products can reach international markets cheaper and faster than ever before.

2. Faster Shipping and Delivery

Because of India’s close geographical location to ASEAN nations, shipping times are much shorter compared to Europe or the US. Businesses can expect quicker turnaround times and reduced logistics costs a key advantage for perishable goods and eCommerce sellers.

3. Huge Market Potential

With over 650 million consumers, ASEAN represents one of the largest and fastest-growing markets in the world. Rising incomes and digital transformation are boosting the demand for high-quality Indian products and services.

4. Government Support

The Indian government is encouraging MSMEs and startups to explore ASEAN through export incentives, GST reforms, and startup funding programs. Recent initiatives like PM Bachat Utsav and India-China trade expansion plans show a clear focus on promoting Swadeshi products globally while keeping trade channels open with Asian partners.

StartupFlora’s Role: Connecting Indian Startups to ASEAN

At StartupFlora, we identified this growth potential early and took the first major step toward connecting Indian businesses to the ASEAN market.

Recently, our team participated in the Smart City Expo in Malaysia, a platform that brought together innovators, CEOs, and government delegations from across Asia. This event highlighted how collaboration between India and ASEAN can transform both economies through innovation, digital technology, and sustainable business models.

During the event, StartupFlora partnered with top ASEAN brands like Omnitech, Elabram Group, and 50 other companies to build a strong business network for Indian startups and MSMEs. These partnerships aim to provide market access, mentorship, and investment opportunities for Indian entrepreneurs looking to scale globally.

ASEAN Market Opportunities for Indian MSMEs

Many Indian MSMEs are already exploring how to expand business in ASEAN countries. Here’s how you can start:

1. Identify Your Product Demand:Research which of your products fit ASEAN market needs — for example, Indian handicrafts, IT services(checkout the loans and scheme), renewable energy solutions, or organic foods are in high demand.
2. Use Free Trade Benefits:Take advantage of the ASEAN-India Free Trade Agreement (AIFTA) to enjoy reduced or zero export taxes.
3. Find Local Partners:Collaborate with companies like those in the StartupFlora ASEAN partnership network for guidance on legal, logistical, and marketing processes.
4. Leverage Digital Channels: Use eCommerce platforms and digital marketing to reach customers across borders. StartupFlora offers digital expansion support to help you go global efficiently.

Get Government Support: Apply for MSME and export promotion schemes that cover product certification, logistics support, and financial aid.

India-China Startups: A New Trade Chapter

While ASEAN countries remain India’s closest trade allies, India-China startup collaboration is also gaining attention. As discussed in StartupFlora’s blog India-China Trade Relations: A Strategic Push Towards Startup Empowerment, this partnership can unlock huge potential for tech-based innovation, manufacturing collaboration, and cross-border investment.

China’s advanced supply chain systems combined with India’s growing startup ecosystem can create mutual growth opportunities. With the Indian government promoting Make in India, Startup India, and new GST reforms, there’s strong political and economic momentum to build sustainable trade between Asian countries.

These steps align with Prime Minister Modi’s vision to strengthen regional ties and help Indian businesses compete globally through innovation, export support, and lower tariffs.

Smart City Expo Malaysia: A Milestone for Indian Startups

At the Smart City Expo in Malaysia, StartupFlora represented India’s startup ecosystem and showcased how technology, sustainability, and cross-border collaboration can power future cities.

Meeting with CEOs, investors, and government delegations, our goal was clear to make Indian MSMEs part of ASEAN’s growth wave. The response was inspiring. Many Malaysian and ASEAN organizations are eager to collaborate with Indian businesses in sectors like:

• Smart infrastructure
• Renewable energy(check grants)
• Fintech and digital services
• Education technology
• Healthcare and biotech(check grants)

This marks a new era for startup expansion in ASEAN countries.

Government Support to Indian MSMEs & Startups

The Government of India is actively simplifying export procedures and promoting regional trade.

Key Initiatives Include:

• PM Bachat Utsav: A step toward encouraging Swadeshi products and local entrepreneurship.
• GST Reforms: Simplifying taxation for exporters and improving compliance.
• Make in India & Startup India: Helping startups and MSMEs get global recognition.
• India-ASEAN Trade Initiatives: Policy reforms that strengthen partnerships in manufacturing, IT, and green energy.

These actions show India’s readiness to lead the next phase of Asia’s economic integration.

0% Tariff Export Countries for Indian Businesses

If you are looking for low-tariff export destinations, ASEAN nations top the list. Countries like Malaysia, Vietnam, Thailand, and Singapore offer extremely low import duties for Indian products under AIFTA.

This gives Indian exporters a competitive edge more profit, faster trade, and global reach. Whether you are exporting handicrafts, textiles, machinery, or digital services, ASEAN markets provide a profitable and sustainable platform.

Are You Ready to Explore the ASEAN Market?

The ASEAN region is no longer a distant dream. It is a real opportunity for Indian startups and MSMEs. With the right guidance, partnerships, and government support, your business can expand globally without heavy investments.

StartupFlora is here to guide you through every step from understanding trade regulations to connecting you with verified ASEAN partners.

Together, we can build stronger India-ASEAN relations and create a future where Indian innovation leads Asia’s growth story.

FAQs

Q1. What are the major ASEAN markets for Indian startups in 2025? Malaysia, Singapore, Indonesia, Thailand, and Vietnam are currently the top-performing markets offering low tariffs and fast logistics for Indian exporters.

Q2. How can Indian MSMEs benefit from ASEAN free trade?
Through the ASEAN–India FTA, most goods can be exported at zero or reduced tariffs, giving Indian manufacturers higher margins and better market access.

Q3. How can a startup begin exporting to ASEAN?
Start by registering under India’s DGFT and FIEO, obtain AIFTA certificates, and identify eligible products. StartupFlora assists with the end-to-end documentation and partnership process.

Q4. Are there government incentives for export expansion?
Yes, the Indian government has introduced multiple benefits GST refunds, credit subsidies, and MSME export government grants to help businesses expand globally.

Q5. How do India-China relations affect ASEAN expansion?
India’s balanced approach toward China and ASEAN ensures that startups can access both ecosystems leveraging China for manufacturing and ASEAN for distribution and markets.