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. 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