Bilateral Economic and Commercial Relations
Embassy of India Manila
Bilateral Trade and Economic Relations
I. BILATERAL TRADE
India and Philippines signed a Trade Agreement in 1979. Bilateral trade was slow between the two countries till the late nineties and then posted a positive growth after the deepening relations between India and ASEAN in the context of India’s ‘Look East Policy’’. The Agreement on Trade in Goods, which was signed on 13 August 2009 between India and ASEAN; and was fully implemented in 2011, helped in increase in bilateral trade. India is part of the Regional Comprehensive Economic Partnership Negotiations (RCEP) which will also support and contribute to economic integration. Bilateral trade presently stands at US $ 1738.99 mln (Exports from India-USD 1287.07mln, India’s imports USD 451.92mln). [Source: MOC for CFY 2019-20 Apr-Jan]. Existing full potential has not been realized and there is need to further facilitate trade between the two countries especially since both economies are growing and are complementary to each other.
Philippines-India Exports and Imports (in million US$) FY
|India’s Import from Philippines||423.04||494.62||764.36||581.10||451.92|
|India’s Export to Philippines||1353.34||1,482.52||1,693.83||1,743.64||1287.07|
Source: MOC India *Apr-Jan
2. Major items of Indian exports are Vehicles, and parts and accessories, Pharmaceutical products, Reactors, Boilers, Machinery and Mechanical Appliances; parts thereof, Iron and Steel, Frozen Buffalo Meat & Edible Meat offal, Rubber and Articles thereof,Electrical Machinery and Equipment and parts thereof, TV image and Sound recorders and Reproducers and parts, Rubber and Articles thereof, Oil Seeds and Olea, Fruits, Misc grains, Seeds, Organic Chemicals, Articles of Iron and Steel.
|Sl No||HS Code||Commodity||2015-16||2016-17||2017-18||2018-19||2019-20 (Apr-Jan)|
|1||87||Vehicles other than Railway or Tramway Rolling stocks, and part and accessories thereof.||231.31||249.97||254.24||285.59||238.57|
|3||84||Reactors, Boilers, Machinery and Mechanical Appliances; parts thereof.||184.68||168.8||120.52||136.71||135.08|
|4||72||Iron and Steel||14.03||33.54||176.42||101.84||68.79|
|5||2||Meat & Edible Meat offal||116.44||100.51||117.59||119.73||64.03|
|6||85||Electrical Machinery and Equipment and parts thereof; TV image and Sound recorders and Reproducers and parts.||78.77||63.28||56.08||65.40||60.48|
|7||40||Rubber and Articles thereof||73.8||78.07||23.19||69.79||56.72|
|8||12||Oil Seeds and Olea, Misc grains, Seeds and Fruit; Industrial or Medicinal Plants; Straw and Fodder.||67.59||66.83||55.03||55.15||52.91|
|10||73||Articles of Iron and Steel||26.37||23.94||28.52||77.39||27.30|
3. Major imports from Philippines areReactors, Boilers, Machinery and Mechanical Appliances; parts thereof; Electrical Machinery and Equipment and parts thereof; Sound Recorders and Reproducers, TV image and Sound recorders and Reproducers and parts; Ores, slags and ashes;, Natural or Cultured pearls, precious or semiprecious stones, Clad with Pre metal and artcls thereof, Imit. Jewelry; Residues and waste from the Food Industries, prepared animal folder;Optical, Photographic Cinematographic measuring, checking precision, medical, or surgical Inst. and apparatus parts and accessories thereof; Iron and Steel;Lead and articles thereof, Organic chemicals; Plastic and articles.
Top IMPORT products of Trade from Philippines (Source: MoC) (In US $ Millions)
|Sl No||HS Code||Commodity||2015-16||2016-17||2017-18||2018-19||2019-20(Apr-Jan)|
|1||84||Nuclear Reactors, Boilers, Machinery and Mechanical Appliances; parts thereof||96.9||98.88||129.85||139.18||114.11|
|2||85||Electrical Machinery and Equipment and parts thereof; Sound Recorders and Reproducers, TV image and Sound recorders||145.48||140.71||282.89||120.16||98.52|
|3||26||Ores, Slags and Ashes||15.92||1.59||1.59||29.13||28.77|
|4||71||Natural or Cultured pearls, precious or semiprecious stones, Pre metals, Clad with Pre metal and artcls thereof; Imit. jewelry;||74.82||20.56||48.26||68.47||28.46|
|5||23||Residues and waste from the Food Industries; prepared animal fodder||13.23||13.01||22.06||19.41||25.57|
|6||90||Optical, Photographic Cinematographic measuring, checking precision, medical, or surgical Inst. thereof.||20.42||25.12||26.59||22.26||17.63|
|7||72||Iron and Steel||5.01||7.68||14.23||25.66||14.30|
|8||78||Lead and articles thereof||0||0||0.25||2.76||13.19|
|10||76||Plastic and articles||0.50||1.01||4.97||14.23||4.50|
10. Indian automotive technology company CarDekho Group has acquired local automotive website Carmudi Philippines, Inc. With this acquisition, CarDekho’s technologies are expected to upgrade the buying and selling website experience for Carmudi Philippines in web marketing of second-hand cars in the Philippines which has grown at 14.4% compounded annual growth rate from 2014-2018. Prasaad Seeds Phils. Inc. has invested Peso 175 million in Pangsasinan, Philippines.
11. Potential sectors for Indian companies in Philippines:
- IT-non voice sectors, particularly in medical, financial and legal services, game development, engineering design in manufacturing, software development
- Pharma: Generics, medical equipment, vaccine, OTC, oncology and high end medicines, herbal medicines etc
- Infrastructure- Airports, Ports, Railways, Roads etc - through the PPP route
- Manufacturing: Electronics, Ship building, tools and dyes, furniture, garments, Power and Transport
- Renewable Energy (RE) Sector
- Agribusiness: Cacao, Coffee, mangoes, bananas, coconuts, rubber, bamboo, fruits and nuts, palm oil and other high value crops.
- Tourism: Hotels, Services, management etc
- Services and logistics.
III. BILATERAL MECHANISMS
13. JWG: The India-Philippine Joint Working Group (JWG) on Trade and Investment has been meeting fairly regularly under the joint Chairmanship of our Commerce Secretary and Philippines Undersecretary for Trade and Industry. The 12th Joint Working Group on Trade and Investments was held in New Delhi on 31 March 2016. Both sides noted with satisfaction that the bilateral trade has been increasing on a sustained basis but acknowledged that there was more scope.
14. The 3rd JWG on Health and 2nd JWG on Agriculture took place in April and May, 2018 respectively. Also the India-Philippines ‘Air-Consultation Talks’ were held on 11-12 July, 2018. During this meeting, MoU on Air Services Agreement was initialedpaving the way for direct flights between both the countries, which may increase the flow of trade and tourism into higher level in the near future.
15. JBC: The India-Philippine Joint Business Council (JBC) was set up in 1994 and it has met seven times starting in 1995. The nodal agencies are the Philippine-India Business Council under PCCI on the Philippine side and the FICCI on the Indian side. FICCI led a delegation of 12 businessmen to Manila from March 3-6, 2014 and again in November 2017 for the ASEAN Business and Investment Summit. The delegation met the Secretary of Trade & Industry, various local chambers of commerce and businessmen during their visit.
IV. TRADE DELEGATIONS
16. Trade delegations have been encouraged to Philippines to facilitate direct interaction with Filipino businessmen. In 18 January 2019, an event entitled Pharma Biz Connect 2019 was participated by an Indian Delegation comprising of 23 pharmaceutical companies while more than 50 Philippine companies and government agencies attended jointly the business forum in the morning and buyer-seller meeting (BSM) in the afternoon. Industry associations such as the Pharmaceutical and Healthcare Association of the Philippines (PHAP), Drugstores Association of the Philippines (DSAP) and Philippine Chamber of Pharmaceutical Industry (PCPI) were also in attendance during the event. The B2B activity generated lot of inquiries and around US$ 3.5 millionsbook orders were placed by Philippine companies.
17. The Philippines-India Business Conclave and the ASEAN-India Business Summit were organized on 19 October 2019 to coincide with the visit of the President of India to the Philippines which was the first of its kind and the biggest such business event ever held in the Philippines covering Digital Technologies, Innovation, Health & Pharmaceuticals and Agriculture. Furthermore, the Embassy together with Indian delegation, participated in similar business summit and trade events in the Philippines such as PHILCONSTRUCT 2019, Rice Conference 2019, and ASEAN-India Innovation Technology Summit and Grassroots Forum.
Updated as of 30 April 2020