Philippines, India Eye $10 Billion Trade with FTAs

Bilateral trade between India and the Philippines is on track to hit $10 billion within the next five to six years, bolstered by the anticipated benefits of free trade agreements (FTAs). India's Ambassador to the Philippines, Harsh Kumar Jain, expressed confidence that the finalization of the revised ASEAN-India Trade in Goods Agreement and a subsequent India-Philippines Preferential Trade Agreement (PTA) would pave the way for this significant growth. "With the ASEAN (Association of Southeast Asian Nations)-India revised trade agreement coming into effect once it’s concluded and subsequently the India-Philippines preferential trade agreement (PTA), I think we can easily reach $5 billion very soon," Ambassador Jain informed reporters during a business-to-business and business-to-government meeting attended by an Indian business delegation. He further elaborated, "And then, of course, we can work on to reach, $10 billion in the next five to six years." This projection follows a robust performance in the previous year, where total bilateral trade between the two nations amounted to $3.55 billion. Ambassador Jain highlighted a consistent annual growth rate of 15 to 16 percent in favor of India, indicating a steady expansion of economic ties. The primary imports from India to the Philippines comprise pharmaceuticals, engineering products, and agricultural goods, notably buffalo meat. Conversely, the Philippines' key exports to India are concentrated in the technology and materials sectors, including electronics, semiconductors, and minerals. Both nations are currently awaiting the conclusion of the ongoing review of the ASEAN-India Trade in Goods Agreement. "The idea is that once that is concluded, we will further build on that in the PTA between the two countries," Ambassador Jain explained. He conveyed his strong desire for the agreement's review to be completed within the next couple of months, stating, "We would very much like that this is concluded before the ASEAN Summit this year." The upcoming ASEAN Summit is slated to take place in Manila in November. Information Source: Philstar Business