India open to broader trade pact with PH
New Delhi is keeping the door open to broadening its planned preferential trade agreement (PTA) with Manila beyond trade in goods, with negotiations on the long-awaited deal expected to finally begin in 2027.
India is banking on the agreement to significantly boost bilateral trade with the Philippines, which remains modest compared with its commerce with the broader Association of Southeast Asian Nations (Asean).
In 2025, trade between India and Asean reached $128 billion, while New Delhi’s trade with Manila stood at only $3.9 billion.
“That means there is an opportunity. There is a huge potential for increasing this trade relationship. And that is why we are looking at having a preferential trade agreement between India and Philippines,” Indian Ambassador to the Philippines Harsh Kumar Jain told reporters.
Jain said both countries had already agreed on the terms of reference for the negotiating committee.
Formal talks have yet to begin, however, as India awaits the conclusion of the review of the Asean-India Trade in Goods Agreement, which gained ground this week during the Asean Economic Ministers’ meetings in Manila.
Even before negotiations begin, Jain has signaled India’s interest in eventually pursuing a more comprehensive arrangement.
“It’s a preferential trade agreement on goods, but we would also want to broaden it,” he added.
A PTA primarily provides preferential market access through measures such as lower tariffs on selected goods.
It is generally narrower than an FTA, which can encompass a wider range of areas such as services, investment, intellectual property, government procurement and competition.
Beyond trade, Jain is also looking forward to increased travel between the Philippines and India as airlines move to establish or expand direct air links between the two countries.
India’s largest airline, IndiGo, has already applied for regulatory approval to launch its inaugural Philippine service between Mumbai and Manila.
According to Jain, the airline intends to operate daily flights.
Air India currently operates daily flights between Manila and New Delhi, while Philippine Airlines has separately sought additional traffic rights from the Civil Aeronautics Board as it looks to revive its own services to India.
Indian arrivals in the Philippines surged 43 percent to 60,583 tourists in the first half, making the South Asian economy the Philippines’ 10th-largest source of foreign visitors.
