India Trade Pact: Marcos Boosts Market Access, Resilience
Philippines Revives Push for Trade Agreement with India to Boost Economic ties
NEW DELHI – President Ferdinand R. Marcos Jr.reaffirmed the Philippines’ commitment to forging a Preferential Trade agreement (PTA) with India,positioning it as a crucial step towards expanding market access and fortifying supply chain resilience between the two nations.The President made the appeal during a high-level CEO roundtable meeting with leading Indian business figures on the third day of his state visit, underscoring the potential for deeper economic integration.
According to Palace Press Officer Claire Castro, the proposed PTA would establish formalized trade facilitation mechanisms and unlock broader economic opportunities, notably in sectors where the Philippines and India demonstrate strong complementary strengths.
“President Marcos Jr. emphasized the formalization of the Philippine-India Preferential Trade Agreement, which will open greater market access, institutionalize trade facilitation, and reinforce supply chain resilience,” Castro stated during a briefing with the Philippine media delegation.
The roundtable, organized by the Philippine Department of Trade and Industry (DTI) in collaboration with India’s Ministry of Commerce and industry, served as a platform for the President to highlight the Philippines’ burgeoning potential as a prime trade and investment destination.
President Marcos urged Indian businesses to explore investment opportunities in key sectors including semiconductors, digital technology, infrastructure development, renewable energy, pharmaceuticals, and healthcare. He detailed recent government reforms designed to streamline business processes and attract strategic investments.
These reforms include Executive Order 18, which establishes “green lanes” for expedited processing of key investments; the newly enacted Public-Private Partnership Code; and amendments to the Renewable energy Act, now permitting 100% foreign ownership in the sector.
The President also highlighted the CREATE MORE Act, signed in November 2024, which clarifies Value Added Tax (VAT) and duty incentives, simplifies regulations for registered businesses, and reduces the overall cost of doing business in the Philippines. “These measures aim to make the Philippines time-bound, performance-based, and transparent amid evolving investor demands,” Castro explained.
Recognizing the importance of a skilled workforce, President Marcos also underscored the passage of the Enterprise-Based Education and Training (EBET) Framework Act, designed to enhance the skills and competitiveness of Filipino workers across various industries.
Bilateral trade between the Philippines and India has already demonstrated meaningful growth, reaching USD 3.3 billion between 2024 and 2025. This figure reflects not only increasing trade volumes but also a strengthening alignment between the two economies. The Philippines’ robust economic performance, with a 5.7% GDP growth in 2024,stable credit ratings,and a healthy banking sector,further reinforces its solid macroeconomic fundamentals.
To capitalize on this momentum, President Marcos directed the DTI to spearhead negotiations on the PTA and to establish a Joint Working Group on Trade and Investment with their Indian counterparts. He assured Indian business leaders of his administration’s unwavering support in fostering a predictable and conducive business surroundings.