India and Philippines commence negotiations on investment treaty

NEW DELHI: India and the Philippines have commenced negotiations on a new bilateral investment treaty even as there has been a recent upswing in economic engagement that both sides are keen to accelerate. The first round of talks on a new treaty took place last week in a virtual meeting between the Department of Economic Affairs and the Philippines department of trade and industry.
“Both sides had exchanged their respective drafts a few years ago after India had decided to work on a new model Bilateral Investment Treaty text. With the recent upswing in economic engagement with the Philippines, both sides are seeking to reach early agreement on a range of initiatives,” an official said.

In the recent past, Indian companies have made significant investments in the Philippines. These include Wipro Enterprises completing a $200 million acquisition of Philippines personal care brand Splash in 2019 and GMR completing two major airport projects in Cebu and Clark.

Philippines conglomerate Ayala Corporation, which had earlier invested $100 million in a solar project in Rajasthan, has announced an investment of $36 million in a 70 MW solar energy plant in Amreli district of Gujarat.