India has formalised the terms of reference (ToR) with the Philippines and the Maldives, marking the start of negotiations for new trade agreements, the Commerce Ministry said on Monday.
The move is part of India’s ongoing efforts to expand its trade footprint and strengthen bilateral economic partnerships.
The ToR defines the structure and scope of the proposed agreements. India will begin discussions for a preferential trade agreement (PTA) with the Philippines, while negotiations with the Maldives will focus on a free trade agreement (FTA).
Under a PTA framework, tariff reductions are applied to a limited set of goods between partner countries. In contrast, an FTA typically covers a broader range of goods, alongside provisions aimed at facilitating trade in services and investments through eased regulatory norms.
India’s trade performance with the 2 countries has shown mixed trends. Exports to the Philippines rose 3.11% to $2.16 billion in 2024-25, while imports declined 17.8% to $1.17 billion during the same period.
In the case of the Maldives, exports fell 37.11% to $56.88 million, whereas imports increased 37.14% to $118.82 million, reflecting a shift in bilateral trade dynamics.
The Philippines is part of the ASEAN bloc, with which India has an existing goods trade agreement signed in 2009. This agreement is currently under review, as concerns have been raised over its impact on India’s exports.
The AITIGA Joint Committee has held 11 review meetings so far, with the next scheduled for March 30–31, 2026.
Separately, India is also reviewing its Comprehensive Economic Partnership Agreement (CEPA) with South Korea. The review process, which began in 2016, has completed 11 negotiation rounds, with the latest round held in Seoul in July 2024.
India has been actively pursuing multiple trade agreements to diversify its economic partnerships. Negotiations are currently underway with countries and regions including the Gulf Cooperation Council (GCC), Canada, Australia, Sri Lanka, Peru, Chile, Israel and the Eurasian Economic Union (EAEU).
The EAEU comprises Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan, with formal negotiations initiated last year.
In addition, India has signed trade agreements with the United Kingdom and Oman, which are expected to be implemented this year. Negotiations with the European Union and New Zealand have also reached completion.
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By initiating fresh negotiations while simultaneously reviewing existing agreements, India is recalibrating its trade strategy to improve market access, address imbalances and strengthen its position in global trade networks.
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Published on: Mar 17, 2026, 1:16 PM IST
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