New Delhi [India], August 5 (ANI): The Philippines has extended support to India’s request to accelerate the ongoing review of the ASEAN-India Trade in Goods Agreement (AITIGA), with India expressing hope that the process will be concluded before the end of this year, the Ministry of External Affairs (MEA) said on Tuesday.
“Philippines also supported our request to expedite the AITIGA trade review, which we hope will conclude before the end of the year,” MEA Secretary (East), Periasamy Kumaran, stated during a special press briefing on the occasion of the state visit of the President of the Philippines, Ferdinand R. Marcos Jr, to India.
Kumaran stated that both leaders welcomed the steady growth in bilateral trade, which currently stands at approximately USD 3.3 billion, expressing satisfaction over the signing of the Terms of Reference to launch negotiations for an India-Philippines Preferential Trade Agreement (PTA), aimed at further boosting trade in goods and investment flows.
India also acknowledged the increasing presence of Indian businesses in the Philippines. According to MEA, Indian investments in the country amount to nearly USD 5 billion when including those routed through third countries and approximately USD 1.2 billion in direct investments. Notably, India remains a leading exporter of pharmaceutical products to the Philippines.
During the bilateral talks, both leaders took note of our growing defence collaboration and agreed to strengthen it further. They also appreciated the steady increase in bilateral trade, which is currently at about USD 3.3 billion and welcomed the signing of the terms of reference on negotiations for an India-Philippines PTA today towards enhanced trade and goods,” Kumaran said.
“We also welcomed the presence of Indian investments in the Philippines. USD 5 billion in all if you take into account investments routed through third countries. But about USD 1.2 billion if you are only talking about direct investments from India into the Philippines. These are mostly in the area of IT-enabled services, healthcare, agriculture, textiles, FMCG and chemical sectors. It was also noted that India is a top exporter of pharmaceutical products to the Philippines,” he added.
In the agriculture sector, Kumaran highlighted continued collaboration, particularly in rice research, noting that the South Asia Regional Centre of the International Rice Research Institute (IRRI) in Varanasi had developed an ultra-low glycaemic rice variety, the first batch of which was presented to President Marcos in Manila in October 2023.
“The leaders welcomed progress in cooperation in the agriculture research, particularly rice research, since the last visit of the Prime Minister to the Philippines in 2017. The International Rice Research Institute South Asia Regional Centre in Varanasi…developed an ultra-low glycaemic rice variety. The first batch of which has been presented to the Philippines President in Manila in October 2023,” he stated.
India and the Philippines, in a Joint Declaration on the “Establishment of a Strategic Partnership”, following Prime Minister Narendra Modi and Philippines President Marcos meeting, reaffirmed the shared objective of creating stronger economic and trade ties and outlined plans to foster business exchanges, simplify customs procedures through the Joint Customs Cooperation Committee, and enhance cooperation in pharmaceuticals, traditional medicine, and healthcare systems.
Both sides also reaffirmed their commitment to deepening economic engagement, highlighting areas such as renewable energy, critical minerals, electric mobility, digital technologies, artificial intelligence, biotechnology, and infrastructure. The leaders called for regular ministerial and senior official-level engagements to resolve market access issues, facilitate investments, and promote business linkages, as per the statement.
Connectivity was also featured prominently in the discussions. The two leaders welcomed upcoming direct air connectivity between New Delhi and Manila as a step towards enhancing trade, tourism, and people-to-people contact.
Earlier today, the MEA stated that direct flights from Delhi to Manila are expected to commence operations from October 1 this year after President Marcos announced visa-free entry privileges for Indian tourists, while PM Modi reciprocated with a similar scheme for Filipino tourists during a joint press statement.
“I reiterated our introduction of visa-free entry privileges and extended our invitation for more Indian tourists to visit the Philippines. I thank Prime Minister Modi in turn for the introduction of a scheme to grant visas free of charge to Filipino tourists travelling to India. We welcome the resumption of direct flights from October this year and have renewed our commitment to sustaining and expanding such direct air connectivity,” he said.
Prime Minister Narendra Modi welcomed the decision, noting that India has also agreed to offer free e-visas to tourists from the Philippines.
“We welcome the Philippines’ decision to allow visa-free entry to Indian tourists. India has also decided to allow free e-visas for the Philippines’ tourists. This year, work will be done regarding direct flights between India and Manila,” PM Modi stated. (ANI)
