The President of India recently positioned India at the forefront of evolving international relations, underpinning his engagement at the India-Philippines Business Conclave and the 4th Association of Southeast Asian Nations (ASEAN)-India Business Summit in Manila, Philippines. This occasion was significant as it marked the 70th anniversary of diplomatic relations between India and the Philippines.
The Indian head of state also took the opportunity to unveil the statue of Mahatma Gandhi at Miriam College in Quezon City.
A pivotal focus of both India and the Philippines is merging and coordinating their respective national development strategies. The “Make in India” campaign finds a mirror in the Philippines’ ambitious “Build, Build, Build” infrastructure initiative. The synergy of these two initiatives presents an attractive investment landscape for both domestic and foreign companies.
Growth of Bilateral Trade and Rising Indian Presence in the Philippines
Trade between India and the Philippines has been on a steady growth trajectory, registering nearly $2.5 billion. Notably, the IT-BPO sector emerges as a crucial component fueling the bilateral trade. Concurrently, the Indian corporate footprint in the Philippines has grown substantially over time, enhancing the dynamics of the economic relationship.
India-Philippine ties have also experienced a surge in two-way investments, particularly in the infrastructure and energy sectors. Indian contribution is evident in concrete projects such as LNG pipelines, waste management, and airport terminals in the Philippines.
The mutual commitment to further bolster ties extends into tourism, with plans to sign an agreement to stimulate tourism between the two nations.
Furthermore, the potential for partnership expansion into various domains remains vast – from agriculture, engineering, services, trade and investment to emerging technologies like digital devices and Artificial Intelligence. The Philippine market also stands to gain immensely from India’s thriving pharmaceutical and healthcare sectors.
| Area | Potential for Partnership Expansion |
|---|---|
| Agriculture | High |
| Engineering | High |
| Services, Trade and Investment | High |
| Digital Devices | Moderate |
| Artificial Intelligence | Moderate |
| Pharma and Healthcare | High |
4th ASEAN-India Business Summit: Upgrading Economic Relations
The 4th ASEAN- India Business Summit demonstrates a clear aspiration to elevate the economic and business relations between ASEAN countries and India. The “Act East” policy places ASEAN in the epicenter of India’s engagement with the Indo-Pacific region. Both parties are hopeful of raising the bar of ASEAN-India trade, striving to achieve the target of US$ 200 billion by 2022.
Building upon a Historic Relationship: India-Philippines Relations Over Time
India and the Philippines initiated diplomatic relations in 1949, shortly after gaining independence. Despite historical shared values and commonalities like anti-colonialism, South-South cooperation, democratic tendencies, and the widespread use of English, there is yet untapped potential in the relationship between the two countries.
With India’s Act East Policy (2014) and Look East Policy (1992), the relationship with the Philippines diversified into political-security and trade and industry. These policies have had a profound impact on bilateral relations, encompassing not just political and economic dynamics but also cultural and social aspects. The Indian community in the Philippines is now an integral part of its population, with the country also emerging as a prominent destination for Indian students.
