India and the Philippines are actively negotiating a Preferential Trade Agreement (PTA) aimed at broadening the range of goods exchanged between the two nations, even as bilateral trade approaches the US$4 billion mark, Philippines Ambassador to India Josel F. Ignacio said on Wednesday, 22 July. The Ambassador made the remarks in an exclusive interview, noting that investment cooperation between the two countries is also gaining momentum.

Trade and Investment Momentum

Bilateral trade between India and the Philippines crossed the US$3 billion threshold in 2023 and is now closing in on US$4 billion, according to Ambassador Ignacio. He noted that several Indian companies are already operating successfully in the Philippines, particularly in information technology, business process management, pharmaceuticals, and infrastructure.

'We welcome even more Indian businesses to explore the many opportunities available in the Philippines through our improving business environment and investment incentives,' Ignacio said. On the other side, Philippine companies are increasingly channelling investments into India, with a focus on renewable energy and the food sector. More business delegations from both countries are expected to visit each other in the coming months, he added.

Semiconductor Cooperation on the Horizon

Ambassador Ignacio highlighted that the Philippines is closely watching India's Semiconductor Mission, describing it as reflecting 'the bold vision of the Government of India.' The Philippines has been a significant part of the global semiconductor supply chain for more than 50 years, particularly in chip assembly, testing, and packaging, and is now looking to move further up the semiconductor value chain.

'Both India and the Philippines have strengths in this sector, and we believe there are significant opportunities for cooperation where both countries can leverage each other's expertise,' he said. This comes amid a global scramble for semiconductor self-sufficiency, with technology and artificial intelligence increasingly driving economic growth worldwide.

Shared Priorities and People-to-People Ties

The Ambassador underscored that the two countries share common priorities including economic prosperity, connectivity, the rule of law, food security, energy security, and digital public infrastructure. He also pointed to significant improvements in people-to-people relations, with direct flights now operating between the two countries and tourism rising in both directions.

Notably, Indian nationals can now travel to the Philippines visa-free for up to 14 days for tourism or short-term business, a policy shift that has supported the uptick in travel. 'All these developments reflect the strong foundation of our relationship and provide an excellent basis for future growth,' Ignacio observed.

Diplomatic Outlook

Ambassador Ignacio also praised India's developmental trajectory, stating that the Philippines fully supports India's aspirations under the Viksit Bharat vision. He credited Prime Minister Narendra Modi with elevating India-Philippines relations to their current level, describing today's India as 'very different from what it was decades ago.' With a PTA under negotiation, semiconductor cooperation on the table, and trade nearing a new milestone, the bilateral relationship appears set for a deeper phase of engagement.