India has begun the process of signing Terms of Reference (ToR) to initiate trade negotiations with the Philippines and Maldives, aiming to strengthen economic ties and boost bilateral trade.
Under this initiative, India will negotiate a Preferential Trade Agreement (PTA) with the Philippines and a Free Trade Agreement (FTA) with the Maldives. A PTA focuses on reducing tariffs on selected goods, making trade more competitive, while an FTA offers broader benefits by significantly lowering or eliminating tariffs across a wide range of goods and services.
Trade between India and the Philippines has shown steady growth, with exports rising to $2.16 billion in 2024–25. Meanwhile, India’s engagement with the Maldives aims to deepen cooperation in trade, services, and investment despite recent fluctuations in trade figures.
These agreements reflect India’s strategy to expand its global trade network, improve market access, and strengthen regional economic partnerships. By leveraging both PTA and FTA frameworks, India is working toward enhancing trade efficiency and long-term economic growth.
