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Introduction

India–Philippines relations are transitioning from a modest bilateral engagement to a strategically significant partnership, driven by converging geopolitical interests in the Indo-Pacific. Rooted in India’s Act East Policy and Vision MAHASAGAR, and aligned with the Philippines’ assertive stance in the South China Sea, both nations are deepening cooperation in security, connectivity, trade, and people-to-people exchanges.

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Significance of India–Philippines Ties Gaining Strategic Depth

• Convergence in Indo-Pacific Strategy: Shared vision of a free, open, and rules-based Indo-Pacific strengthens maritime security cooperation.
  Eg: Partnership is a cornerstone of India’s Act East Policy and Vision MAHASAGAR; Philippines to chair ASEAN.
• Shared Stance on South China Sea Disputes: Common position against coercive maritime claims fosters trust and strategic alignment.
• Integration into Maritime Security Networks: Joint participation in regional security mechanisms boosts information sharing and defence coordination.
  Eg: Philippines joining India’s International Fusion Centre for the Indian Ocean Region.
• Enhanced Connectivity and Tourism: Direct transport links remove barriers to mobility, trade, and cultural exchange.
  Eg: Air India launching direct flights; visa-free entry for Indians introduced by the Philippines.
• Expansion of Trade and Customs Cooperation: Institutional mechanisms facilitate smoother trade operations and reduce barriers.
  Eg: Agreement on customs cooperation signed in 2023; talks on Preferential Trade Agreement ongoing.
• Investment and Technology Collaboration: Cross-sector investment boosts economic resilience and supply chain integration.
  Eg: Cooperation in IT, pharmaceuticals, biomass energy; MoU on fintech signed in 2023.
• Symbolic Milestones Strengthening Trust: Diplomatic anniversaries catalyse deeper cooperation and strategic dialogue.
  Eg: India–Philippines celebrated 75 years of diplomatic relations in 2023.
  

Challenges of India–Philippines Ties Amidst Evolving Indo-Pacific Geopolitics

• Geographical Distance Limiting Connectivity: Physical separation has historically hindered direct transport, trade, and tourism linkages, affecting integration compared to other ASEAN states.
• Low Trade Volume Compared to Potential: Despite complementary economies, bilateral trade remains modest within ASEAN–India trade frameworks.
  Eg: In 2023–24, bilateral trade was $3.5 billion, Philippines ranks 6th among ASEAN states in trade with India.
• Philippines’ Hesitancy in Trade Frameworks: Slow ratification of agreements limits the pace of economic integration.
• Competition from Other Strategic Partners: The Philippines’ foreign policy prioritises engagement with major Indo-Pacific players, which may dilute focus on India.
  Eg: Stronger ties with Japan, Australia, and the US in defence cooperation.
• Limited People-to-People Interaction: Weak tourism flows and cultural exchanges limit grassroots engagement.
  Eg: Out of 1.4 million tourists in 2023, only about 30,000 were from India.
• Economic Asymmetry in Investment Flows: Indian investment in the Philippines outweighs reciprocal Filipino investment in India, indicating imbalance.
  Eg: Indian investments are of about $5 billion, mainly in IT, pharma, and biomass energy; Filipino investments in India are minimal.

Conclusion

India–Philippines ties are shifting to a core Indo-Pacific partnership, driven by shared maritime interests, economic synergies, and people-to-people links. Despite distance and modest trade, progress in defence, connectivity, and customs cooperation signals commitment, with potential to become a key pillar of regional stability and growth.

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