India and the Philippines are working towards a Preferential Trade Agreement (PTA) to expand bilateral trade and investment, Philippine Ambassador Josel F. Ignacio said. Bilateral trade, which crossed US$3 billion in 2023, is now approaching US$4 billion, driven by growing cooperation in technology, renewable energy, semiconductors and infrastructure.
Key Highlights
- India and the Philippines are working on a Preferential Trade Agreement (PTA).
- Bilateral trade is nearing US$4 billion after surpassing US$3 billion in 2023.
- The Philippines is encouraging more Indian investments in IT, pharmaceuticals, infrastructure and business services.
- Both countries see strong opportunities for collaboration in semiconductors, renewable energy and digital technologies.
New Delhi, July 23: India and the Philippines are working towards a Preferential Trade Agreement (PTA) aimed at expanding bilateral trade and deepening economic cooperation, Philippines Ambassador to India Josel F. Ignacio has said.
In an exclusive interview, Ambassador Ignacio noted that India-Philippines bilateral trade continues to register strong growth. After crossing the US$3 billion milestone in 2023, trade between the two countries is now approaching US$4 billion, reflecting the expanding economic engagement between the two Indo-Pacific partners.
The ambassador said several Indian companies are already operating successfully in the Philippines across sectors such as information technology, business process management (BPM), pharmaceuticals, and infrastructure. He invited more Indian businesses to invest in the country, highlighting its improving business environment and attractive investment incentives.
At the same time, Philippine companies are increasing their investments in India, particularly in renewable energy and the food processing sector. He added that more business delegations from both countries are expected to exchange visits in the coming months, which will further strengthen commercial and investment ties.
Praising India’s economic transformation, Ambassador Ignacio said Prime Minister Narendra Modi has played a significant role in reshaping the country and advancing the vision of Viksit Bharat. He said the Philippines fully supports India’s development aspirations and credited the current leadership in both countries for elevating bilateral relations to a new level.
The ambassador also highlighted the Philippines’ keen interest in India’s Semiconductor Mission, describing it as a bold initiative that presents significant opportunities for collaboration. He noted that the Philippines has been part of the global semiconductor supply chain for more than 50 years, particularly in chip assembly, testing and packaging, and is now seeking to move further up the semiconductor value chain.
According to Ignacio, artificial intelligence (AI) and advanced technologies are driving global economic growth, with semiconductors forming the backbone of this transformation. He said India and the Philippines possess complementary strengths and can leverage each other’s expertise to build stronger cooperation in semiconductor manufacturing and technology.
The ambassador further said both countries share common priorities, including economic prosperity, connectivity, rule of law, food security, energy security, and digital public infrastructure, creating a strong foundation for deeper strategic cooperation.
He also noted that people-to-people ties have strengthened significantly with the introduction of direct flights and a relaxed visa regime, allowing Indian citizens to travel visa-free to the Philippines for up to 14 days for tourism or short-term business. These initiatives are helping boost tourism and business exchanges between the two countries.
The proposed India-Philippines Preferential Trade Agreement marks another important step in expanding bilateral economic relations. With trade nearing US$4 billion, increasing investments, stronger semiconductor cooperation and growing connectivity, both countries are well-positioned to deepen their strategic partnership in the years ahead.
