August 5, 2025
The PTA will refine existing concessions to boost bilateral trade, with India seeking greater market access for potatoes and grapes, and the Philippines exploring service sector openings
Cooperation is planned in seaweed cultivation, with the Philippines sharing its technology to aid India’s nutritional initiatives
Prime Minister Narendra Modi emphasised the importance of completing the AITIGA review quickly, with the Philippines supporting a conclusion by year-end
Both countries aim to diversify trade, link payment systems, and explore large-scale infrastructure projects, with India offering its Gatishakti platform for coordination
India and the Philippines exchanged the terms of reference for a Preferential Trade Agreement (PTA) aimed at enhancing bilateral trade by building on the liberalised terms already available under the ASEAN-India Trade in Goods Agreement (AITIGA), in effect since 2010. The PTA will allow both sides to fine-tune concessions to their mutual advantage.
India is seeking wider market access for its agricultural products, with potatoes and grapes identified as priorities. There is also an interest in opening up services, with India offering oil and gas consultancy. The Philippines has indicated readiness to share its expertise in seaweed cultivation, an area India is keen to develop for nutritional purposes.
The Philippines will serve as India’s ASEAN coordinator until 2027. Prime Minister Narendra Modi stressed the priority of completing the AITIGA review at the earliest, a goal supported by the Philippines, which hopes for its conclusion before the end of the year. ASEAN members include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam, with India holding separate trade pacts with Thailand and Singapore.
Bilateral trade between India and the Philippines stood at $3.3 billion in the last financial year, comprising $2.16 billion in exports from India, led by pharmaceuticals, and $1.17 billion in imports from the Philippines, mainly minerals and gems. Discussions also focused on diversifying trade, broadening the product base, and exploring the possibility of linking payment systems.
The Philippines has invited India to participate in major infrastructure development projects, with India signalling interest and offering to share its Gatishakti platform for coordinated planning. Indian companies have invested over $5 billion in the Philippines, including $1.2 billion in direct investment.
Both nations have agreed to elevate their relationship to a strategic partnership covering political cooperation, defence, maritime security, trade, investment, healthcare, science and technology, space, connectivity, the digital economy, and fintech. They adopted a joint plan of action for 2025–2029 and signed 14 agreements and memorandums of understanding during the visit of President Ferdinand R. Marcos Jr to India.
Source: Financial Express