India and the Philippines have taken a key step towards deepening economic ties by exchanging terms for a Preferential Trade Agreement (PTA), enhancing trade beyond the existing ASEAN-India framework. The PTA aims to provide tailored concessions, with India pushing for agricultural exports and offering oil and gas consultancy, while expressing interest in the Philippines’ seaweed technologies.
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India and the Philippines have exchanged the terms of reference for a Preferential Trade Agreement (PTA) aimed at enhancing bilateral trade by building on the concessions already offered under the ASEAN-India Trade in Goods Agreement (AITIGA). While the Philippines is already part of AITIGA since 2010 as an ASEAN member, the PTA will help both countries tailor concessions more specifically to their bilateral trade interests.
“In our trade discussions we are looking for more market access for our agricultural products – potatoes and grapes are a priority. There are expectations to try and open up services also. India is offering oil and gas consultancy,” said P Kumaran, Secretary (East) at the Ministry of External Affairs. He also highlighted the Philippines’ special technologies for seaweed cultivation and noted India’s growing interest in the sector for nutritional purposes.
Prime Minister Narendra Modi underscored the Philippines’ role as India’s ASEAN coordinator until 2027 and emphasized the need to complete the AITIGA review swiftly. “The Philippines also supported our request to expedite AITIGA review which we hope will conclude before the end of the year,” Kumaran added.
India-Philippines bilateral trade reached US$ 3.3 billion last financial year, with Indian exports at US$ 2.16 billion, led by pharmaceuticals, and imports at US$ 1.17 billion, mainly comprising minerals and gems. Both nations are looking to diversify trade, broaden the product basket, and identify new areas for inclusion in the PTA. They are also exploring linking payment systems.
The Philippines invited India to participate in major infrastructure projects. “We will be getting seriously involved in infrastructure development projects and considering participation in them,” said Kumaran. The PM also proposed sharing the Gati Shakti platform for coordinated infrastructure development.
Both sides elevated ties to a strategic partnership and adopted a 2025–2029 plan of action, signing 14 agreements and MoUs spanning defence, maritime security, fintech, digital economy, healthcare, and space.
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