Philippines Courts India for Trade Pact
Marcos pitches deeper economic ties in New Delhi
President Ferdinand R. Marcos Jr. is actively promoting the Philippines as a prime investment destination, urging Indian business leaders to explore opportunities and finalize a crucial trade agreement.
Push for Preferential Trade Agreement
During a CEO roundtable in New Delhi, President Marcos Jr. reiterated the Philippines’ desire for a Preferential Trade Agreement (PTA) with India. He highlighted the pact’s potential to broaden market access and bolster supply chain resilience between the two nations.
“Binigyang diin ni Pangulong Marcos Jr. ang pagsasa-pormal ng Philippine-India Preferential Trade Agreement, o PTA, na magbubukas ng mas malawak na market access, pag-institutionalize ng trade facilitation at pag-reinforce ng supply chain resilience,” stated Palace Press Officer Claire Castro.
The meeting, organized by the Philippine Department of Trade and Industry in collaboration with India’s Ministry of Commerce and Industry, aimed to foster deeper economic integration, particularly in sectors with strong mutual potential.
Investment Opportunities Highlighted
Marcos encouraged Indian businesses to invest in key Philippine sectors, including semiconductors, digital technology, infrastructure, renewable energy, pharmaceuticals, and healthcare. He emphasized recent government reforms designed to enhance the ease of doing business.
These reforms include Executive Order 18 for green lanes on key investments, the new Public-Private Partnership Code, and amendments allowing full foreign ownership in the renewable energy sector. The CREATE MORE Act, enacted in November 2024, also offers clarified VAT and duty incentives, streamlining regulations for registered businesses.
“These measures aim to make the Philippines time-bound, performance-based, and transparent amid evolving investor demands,” Castro explained.
Focus on Human Capital and Economic Strength
The President also underscored the importance of human capital development, citing the Enterprise-Based Education and Training (EBET) Framework Act, which aims to elevate the skills of Filipino workers. Marcos reported that bilateral trade between the Philippines and India reached USD3.3 billion from 2024 to 2025, reflecting growing economic alignment.
He pointed to the Philippines’ robust economic indicators, including a 5.7 percent GDP growth in 2024, stable credit ratings, and a healthy banking sector, as further evidence of strong macroeconomic fundamentals. For instance, the Philippines’ manufacturing sector saw a 5.2% growth in output in Q2 2024, indicating industrial expansion.
Next Steps for Trade and Investment
To maintain this positive momentum, President Marcos directed the Department of Trade and Industry to lead the PTA negotiations and establish a Joint Working Group on Trade and Investment with Indian counterparts. He assured the business leaders of his administration’s commitment to fostering a predictable and supportive business environment.
