New Delhi, March 16 India has finalized terms of reference with the Philippines and the Maldives to begin negotiations for free trade agreements (FTAs), the Commerce Ministry said on Monday.
The terms of reference (ToR) outline the scope and modalities of a proposed trade pact.
With the Philippines, negotiations will begin for a preferential trade agreement (PTA), while with the Maldives, it will be for a free trade agreement (FTA), the ministry said.
In a PTA, two trading partners either significantly reduce or eliminate import duties on a specific number of goods traded between them.
On the other hand, in an FTA, two trading nations either significantly reduce or eliminate import duties on the maximum number of goods traded between them, in addition to easing regulations to promote trade in services and investments.
India's exports to the Philippines rose by 3.11 per cent to USD 2.16 billion in 2024-25, while imports dipped by 17.8 per cent to USD 1.17 billion.
The Philippines is a part of the ASEAN bloc, with which India has a free trade agreement in goods. India and the 10-nation bloc are reviewing the trade pact, as it is hurting Indian exports. The pact was signed in 2009.
The ASEAN countries are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
The ministry said that the AITIGA (Asean-India trade in goods agreement) Joint Committee has met for review 11 times so far. The next meeting is scheduled for March 30–31, 2026.
The ministry also said that the India–Korea CEPA (Comprehensive Economic Partnership Agreement) is under review for upgrading the pact. The review started in 2016, and so far, 11 rounds of negotiations have been held, with the last round held in Seoul in July 2024.
India's exports to the Maldives dipped by 37.11 per cent to USD 56.88 million in 2024-25, while imports rose by 37.14 per cent to USD 118.82 million.
Recently, the country has launched trade pact talks with the Gulf Cooperation Council (GCC) and Canada. Similar negotiations are ongoing with Australia, Sri Lanka, Peru, Chile, EAEU, and Israel.
India and the Russia-led EAEU group started negotiations for a trade agreement from last year. Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan are the five member countries of EAEU.
India has last year signed an FTA with the UK and Oman. It is likely to be implemented this year. Completion of negotiations for trade pacts with the EU and New Zealand has also been announced.