India has inked terms of reference with the Philippines and the Maldives to start 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, a Southeast Asian nation, 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.
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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 maximum number of goods traded between them, besides easing norms to promote trade in services and investments.
India's exports to the Philippines rose 3.11 per cent to USD 2.16 billion in 2024-25, while imports dipped 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.
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 India–Korea CEPA (Comprehensive Economic Partnership Agreement) is under review for upgradation of 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 37.11 per cent to USD 56.88 million in 2024-25, while imports rose 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 going on with Australia, Sri Lanka, Peru, Chile, EAEU, and Israel.
India and the Russia-led EAEU group starts 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 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.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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