Philippines Seeks Stronger Trade Ties with India; Eyes Nickel Exports & PTA Discussions

Manalo, Secretary of Foreign Affairs of the Philippines engaged with FICCI members in New Delhi,

Enrique A. Manalo, Secretary of Foreign Affairs of the Philippines, arrived in New Delhi for the Raisina Dialogue 2025. On the sidelines of his visit, he engaged with FICCI members, emphasizing the growing economic ties between India and the Philippines. He highlighted that discussions on a bilateral Preferential Trade Agreement (PTA) are underway, reflecting the Philippines’ strong interest in deepening collaboration with Indian businesses. Key sectors of focus include automotive, battery manufacturing, value-added IT & ITES services, pharmaceuticals, healthcare, agriculture, and more, paving the way for enhanced trade and investment opportunities between the two nations.

In particular, the Philippines side invited India to source nickel from it which is used for battery manufacturing. This was part of the Philippines' strategy to diversify away from its current 98 per cent dependence on Chinese buyers of nickel. Philippines accounts for 11% of global production of nickel and is the world’s second-largest producer of nickel in 2023.

In his address to Indian business leaders, Secretary Manalo emphasised the strategic importance of developing the Philippines' nickel sector with Indian participation. "The Philippines is the world's largest exporter of nickel ore with exports valued at approximately $1.95 billion, chiefly used in lithium-ion battery production," he said. "Currently, nearly 98 per cent of our exports go to China, with Japan importing the remaining 2 per cent. We are quite interested to see India become a player in our nickel sector, not just for export diversification but crucially for processing and development of a value chain.

"We consider India to hold significant untapped potential as a market for Philippine exports," Manalo told the gathering of industry leaders, highlighting an untapped export potential of $577 million. "We are keen to transition from these scoping exercises to the actual negotiations of a preferential trade agreement that will certainly help drive growth upward."

FICCI President, Harsha Vardhan Agarwal noted that India's pharmaceutical industry plays a significant role in the Philippine market, accounting for around 20 per cent of total Indian pharmaceutical exports to the Asian region. "While we continue to be engaged through trade and investment, I'm happy to see that engagement is diversifying into new and strategic sectors," the FICCI President said, highlighting waste management, green mobility, and agriculture technology as promising areas for collaboration alongside the growing defence partnership marked by India's delivery of BrahMos supersonic cruise missiles to the Philippines in April 2024.

The Philippine Ambassador to India, Josel Francisco Ignacio elaborated on several visa facilitation measures, including a "fast track" process for legitimate businesses with investments in the Philippines, especially for emergency and business visits. "The e-visa allows you to get multiple entry visas for six months or one year, and we're also trying to streamline that process," the ambassador stated, adding that further improvements would be announced soon.