India-Philippines bilateral trade hits $3.9 billion in FY26, new sectors explored
Synopsis
India-Philippines trade crossed $3.9 billion in FY26 — and the two countries are now eyeing a dedicated Preferential Trade Agreement that could go beyond the existing ASEAN framework. From national-currency settlement to AI and pharma collaboration, the Manila JWGTI meeting signals a relationship quietly punching above its diplomatic weight.
Key Takeaways
Bilateral trade between India and the Philippines reached $3.9 billion in FY2025–26 , reflecting a strong upward trajectory.
The 14th JWGTI meeting was held in Manila , co-chaired by Amit Verma (India) and Allan B.
Gepty (Philippines).
Priority sectors identified for deeper collaboration include energy , ICT/IT-BPM/AI , pharmaceuticals , film , and construction .
Both sides discussed trade settlement in national currencies and enhanced customs cooperation .
Early conclusion of the AITIGA Review and a bilateral India–Philippines PTA were also on the agenda.
The next JWGTI meeting will be hosted in New Delhi .
Bilateral trade between India and the Philippines reached $3.9 billion in 2025–26, the Commerce Ministry confirmed on Friday, 5 June, underscoring a strong upward trajectory in the two nations' economic relationship. The milestone was highlighted at the 14th meeting of the India-Philippines Joint Working Group on Trade and Investment (JWGTI), convened in Manila.
Key Developments at the Manila Meeting
The JWGTI session was co-chaired by Amit Verma, Joint Secretary, Department of Commerce, and Allan B. Gepty, Undersecretary, Department of Trade and Industry, International Trade Group, Philippines. Discussions spanned bilateral trade and investment trends, identification of priority products and services, and cooperative promotional activities across multiple domains.
The two sides also explored collaboration opportunities in sectors including film, energy, construction and infrastructure, ICT/IT-BPM/AI, and pharmaceuticals. Both delegations agreed that deeper engagement in these areas could deliver sustained long-term benefits, enabling each country to advance its developmental objectives while reinforcing a framework of mutual support.
Trade Facilitation and Market Access
Improving the business environment emerged as a central agenda item. According to the official statement, discussions covered customs cooperation and facilitation, agricultural cooperation, market access for specific products, and the possibility of trade settlement in national currencies — a mechanism gaining traction across several emerging-market bilateral partnerships.
The meeting also addressed the early conclusion of the ASEAN–India Trade in Goods Agreement (AITIGA) Review, and flagged the prospect of a dedicated bilateral India–Philippines Preferential Trade Agreement (PTA) thereafter. Notably, a PTA would give both sides tariff advantages beyond what the broader ASEAN framework currently provides.
Engagement with Indian Businesses in Philippines
On the sidelines, an interaction with Indian businesses operating in the Philippines was convened, providing a platform to discuss trade, investment, market opportunities, and pathways to deepen commercial ties. Such business-to-business interfaces have increasingly become a fixture of JWGTI meetings, reflecting the growing footprint of Indian enterprises in Southeast Asia.
What Comes Next
The Commerce Ministry said the meeting underscored the strategic importance of strengthening bilateral economic ties and reaffirmed both countries' commitment to a more dynamic partnership. The next JWGTI session is scheduled to be held in New Delhi, signalling continued institutional momentum in the relationship.
Frequently Asked Questions
How much is the bilateral trade between India and the Philippines in FY26?
Bilateral trade between India and the Philippines reached $3.9 billion in 2025–26, according to the Commerce Ministry. Both sides acknowledged this as evidence of a strong upward trajectory in the economic relationship.
What is the India-Philippines JWGTI and what was discussed at its 14th meeting?
The Joint Working Group on Trade and Investment (JWGTI) is a bilateral forum that reviews trade, investment, and economic cooperation between India and the Philippines. The 14th meeting, held in Manila, covered trade trends, priority sectors, customs facilitation, agricultural market access, and the prospect of a bilateral Preferential Trade Agreement.
Which sectors are India and the Philippines targeting for deeper collaboration?
The two sides identified energy, construction and infrastructure, ICT/IT-BPM/AI, pharmaceuticals, and film as priority areas for expanded cooperation. Both delegations agreed these sectors could deliver sustained long-term benefits for both economies.
What is the India-Philippines Preferential Trade Agreement (PTA)?
The India-Philippines PTA is a proposed bilateral trade pact that would offer tariff and trade advantages beyond the existing ASEAN–India Trade in Goods Agreement (AITIGA) framework. The two sides discussed engaging on a PTA after the early conclusion of the ongoing AITIGA Review.
Where will the next India-Philippines JWGTI meeting be held?
The next meeting of the India-Philippines Joint Working Group on Trade and Investment will be held in New Delhi, continuing the alternating-host format of the bilateral forum.
