India is aiming to begin negotiations for a preferential trade agreement (PTA) with the Philippines by the end of this year as it looks to significantly expand trade in goods, according to its top envoy.

In an interview with the Manila Bulletin on Tuesday, July 28, Indian Ambassador to the Philippines Harsh Kumar Jain said both countries have already agreed on the terms of reference (TOR) for the negotiations.

He said talks on the trade deal have not yet started, as the Philippines has been focusing on concluding ongoing negotiations for free trade agreements (FTAs) with other countries.

India, on the other hand, has been focusing on the ongoing review of the existing regional FTA between India and the Association of Southeast Asian Nations (ASEAN), which includes the Philippines.

“We can look at [PTA] negotiations as soon as the India-ASEAN trade agreement review is concluded,” Jain said.

The India-ASEAN FTA, which took effect in 2010, is undergoing a review to determine amendments that would upgrade the deal and address existing concerns.

The conclusion of the review is expected to coincide with the upcoming ASEAN Summit in November in Manila, according to the ambassador.

Once the revised trade pact is signed, Jain said it would serve as the framework for the PTA, making negotiations between India and the Philippines more efficient.

“The terms of the preferences that will be extended in the ASEAN-India FTA, I think we can further build on that in the bilateral agreement,” he said.

Unlike an FTA, which covers a wide range of sectors, a PTA is focused on reducing trade barriers for certain goods and services.

Jain said this would be crucial to India’s goal of increasing trade in goods with the Philippines.

At present, the Philippines accounts for around three percent of India’s bilateral trade with ASEAN. Jain said this contrasts with the Philippines’ contribution of around 11 percent to the region’s gross domestic product (GDP).

“That shows that the potential is much larger,” said Jain. “And I’m sure in the next few years, the trade will expand significantly.”

According to the Philippine Statistics Authority (PSA), total trade between India and the Philippines reached $3.55 billion in 2025.

The Philippines imported $2.09 billion worth of goods from India last year, while the country’s exports to the South Asian nation stood at $1.47 billion, PSA data showed.

Through the PTA, Jain said India is interested in bringing a “large basket of products” to the Philippines.

Earlier, Trade Secretary Cristina Roque told reporters that the country is interested in easing trade barriers on pharmaceutical products under the trade pact.

The Philippines is seeking to complete negotiations for FTAs with the European Union (EU) and Canada, as well as amendments to its economic partnership agreement with Japan or JPEPA, within the year.