The Philippines is ready to initiate the actual negotiations for a preferential trade agreement (PTA) with India, according to Foreign Affairs Secretary Enrique Manalo.
Manalo is in India to attend the 10th Raisina Dialogue March 17 to 19.
Speaking before the Federation of Indian Chambers of Commerce and Industry (FICCI) on Monday, the Filipino top diplomat said Manila is keen to tap into the USD577 million export potential in India.
“We consider India to hold significant untapped potential as a market for Philippine exports,” Manalo was quoted as saying in an FICCI news release on Tuesday.
“We are keen to transition from these scoping exercises to the actual negotiations of a preferential trade agreement that will certainly help drive growth upward,” he added.
A Philippine-India PTA was proposed during the 13th Meeting of the Joint Working Group on Trade and Investments (JWGTI) on Sept. 17, 2020.
The deal, which has been under preliminary discussions for two years, aims to reduce and eliminate tariffs on products of mutual interests.
Meanwhile, Manalo said Manila is eager to deepen engagement with Indian businesses in a number of areas like automotive, battery, value added information technology and IT-enabled services, pharmaceuticals, health and agriculture, among others.
He said the Philippines remains an attractive investment destination, citing its 5.8 percent economic growth in 2024 and forecasts ranging between six and eight percent through 2028.
Manalo also highlighted recent regulatory reforms, including a competitive 20 percent corporate income tax rate for registered businesses and value-added tax exemptions for export-oriented enterprises with 70 percent export sales.
FICCI president Harsha Vardhan Agarwal, on the other hand, took note of the growing trade and investment ties between the two states, and highlighted waste management, green mobility, and agriculture technology as “promising areas for collaboration” alongside the improving defense partnership marked by India’s delivery of BrahMos supersonic cruise missiles to the Philippines in April 2024.
“While we continue to be engaged through trade and investment, I’m happy to see that engagement is diversifying into new and strategic sectors,” Agarwal said.
Bilateral trade between India and the Philippines reached approximately USD3.5 billion in 2024, growing 8.6 percent year-on-year, with the balance favoring Indian exporters.
India primarily supplies pharmaceuticals, automotive components and agricultural products to the Philippines, while the Philippines exports electronic goods, machinery and select agricultural commodities. (PNA)