India and the Philippines aim to launch preferential trade agreement talks by next year, with officials citing limited bilateral trade and the potential for regional economic integration as key drivers.
Trade Talks Target 3% Bilateral Share
Trade Undersecretary Allan Gepty confirmed the Philippines and India plan to initiate negotiations for a preferential trade agreement (PTA) next year, aiming to elevate their bilateral trade from 3% of India’s ASEAN commerce to a more balanced relationship. Indian Ambassador Harsh Kumar Jain highlighted that while India’s trade with the Philippines totaled $3.9 billion, the Philippines accounts for 11.6% of ASEAN’s GDP, underscoring the potential for growth PNA.
During the ASEAN-India Business Forum on 23 September 2026, Gepty discussed government measures to help businesses widen their reach through trade agreements with more countries. The event, held at a hotel in Makati City, featured Gepty as one of the speakers. Indian Ambassador Jain estimated India’s trade with ASEAN at USD128 billion, with its trade with the Philippines at USD3.9 billion. He emphasized that the Philippines, as a major ASEAN economy, represents untapped potential for deeper bilateral ties PNA.
ASEAN-India Economic Momentum
India’s broader economic engagement with ASEAN remains a priority, with bilateral trade reaching USD 128.38 billion in 2025–26. This accounted for 10.55 per cent of India’s total global trade, reflecting the bloc’s significance as a trading partner. At a recent meeting in Manila, India reaffirmed its commitment to a mutually beneficial
AITIGA review, focusing on reducing trade asymmetries and enhancing policy coherence Indiashippingnews.
The 14th East Asia Summit Economic Ministers’ Meeting (EAS-EMM) and the 23rd ASEAN-India Economic Ministers Consultation were held in Manila, Philippines. The Indian delegation, headed by Additional Secretary of the Department of Commerce, Shri Nitin Kumar Yadav, joined Economic Ministers or their representatives from all 11 ASEAN nations—Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Timor-Leste, and Vietnam. EAS partners including Australia, China, Japan, New Zealand, Korea, Russia, and the United States also participated Indiashippingnews.
The meetings facilitated an exchange of perspectives on prevailing regional and global economic developments. The ASEAN Secretariat delivered a briefing regarding the regional and global economic outlook for 2027, including projected impacts on trade and investment flows. The Economic Research Institute for ASEAN and East Asia (ERIA) released a paper detailing an integrated approach to energy security and industrial clusters, integrating energy infrastructure, digital and industrial demand, and coherent trade and investment policies. Indian officials emphasized the need for user-friendly agreements to support business growth Indiashippingnews.
Next Steps and Uncertainties
While both nations agree on the timeline for PTA negotiations, the exact scope of the agreement remains undefined. Gepty stated that we’re trying to rush it out so that we can conclude the same as soon as possible,
but no specific deadlines beyond next year were outlined. The success of the PTA will depend on resolving trade asymmetries and aligning with the AITIGA framework, which is still under review PNA.
India’s delegation also met with Indian businesses based in the Philippines on 22 September 2026 and addressed the challenges they encounter when exporting goods and services Indiashippingnews.
The ASEAN-India Business Forum 2026, organised on 23 September 2026, provided a platform for dialogue between officials and enterprises. The event, covered by PNA, included Gepty’s remarks on expanding trade opportunities. Indian Ambassador Jain reiterated the importance of using the PTA to unlock the Philippines' economic potential within the ASEAN bloc PNA.