Warming up to India is a strategic trade move

India is a friendlier nation that we should cultivate more.

Getting friendlier with an economic powerhouse as India is a win win situation. With a market of nearly 1.5 billion people, India is an ideal trading partner and a foreign investment source that can significantly boost the Philippine economy.

The Philippines cannot ignore India’s rapid economic rise and its stature as the world’s fourth-largest economy.

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Its business interests in the Philippines have been here for decades. Indian-Filipino companies include Indo Phil Textile (1,800 employees), Global Steel (950 and 8,000 in Iligan), Hinduja Global (3,500) and Aegis People Support (over 12,000).

There are about 150,000 Indians residing in the Philippines. But the number of Indian-Filipinos, or Filipinos of Indian descents who have historical connections and have established themselves in the Philippines, is far greater.

Per the National Geographic, 3 perent of the average Filipino’s genes are of South Asian origin, which equates to nearly 3,300,000.

President Ferdinand Marcos Jr. must have been aware of this historical connection when he looked farther to southwest of Asia and embarked on a five-day visit to India early this month.

President Marcos described his visit as the start of a “new beginning” in bilateral relations. He brought home $446 million in confirmed investments and announced that the trip opened the door for billions more in potential deals.

The official visit, marked by meetings with Indian Prime Minister Narendra Modi, President Droupadi Murmu and Indian business leaders, is undoubtedly a success. It opened a wide range of opportunities for cooperation in sectors from agriculture to digital technology, defense, maritime security, pharmaceuticals and training.

“The more we discussed possible areas of cooperation, the more we found… We have always had amicable relations for over 70 years, but now we will engage each other more aggressively in trade, supply chains, and industry development,” Mr. Marcos said.

India is one of the Philippines’ major trading partners, with bilateral trade reaching $3.53 billion in fiscal year 2023–2024, up from $3.05 billion the year before, based on data from the Indian Embassy in Manila.

The initial talks with India generated investment commitments worth about $446 million, with further opportunities valued at $5.6 billion to $5.7 billion.

Two major Indian investors also committed to create a combined 2,000 new jobs in the Philippines through expansion projects in the business process management (BPM) and healthcare sectors.

Hinduja Group, one of India’s largest conglomerates, pledged to generate at least 1,000 new full-time jobs in the business process industry by 2027.

The jobs are part of a $5-million expansion of its local arm, Hinduja Global Solutions (HGS). The company employs over 3,800 Filipinos and has invested more than $50 million since entering the Philippine market in 2003.

Meanwhile, NephroPlus, Asia’s largest dialysis network, announced plans to expand from 39 to 150 clinics nationwide by 2028, creating about 1,000 new jobs and widening access to renal care in underserved provinces.

The $50-million investment plan includes the local manufacture of dialysis supplies and the establishment of a training academy for Filipino hemodialysis nurses.

Attracting Indian tourists to Boracay and other exotic destinations in the Philippines is another gold mine that the Philippines can pursue.

The Philippines has just relaxed visa rules for Indian travelers as part of efforts to boost foreign arrivals and tap high-growth tourism markets.

Indians holding valid visas from the US, Japan, the UK, Australia, the Schengen area, Canada and Singapore can now enter the country visa-free for up to 14 days, says Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go.

“Tourism has always been one of the lowest-hanging fruits for our country to maximize, and I have long pushed for it, even back when I was still presidential adviser. Almost every country in the world now offers online visa applications, and we must keep pace if we want to compete,” Go added.

“With access now to 1.5 billion people in India, we can be looking at major tourism numbers,” Go said, citing the October launch of Air India’s direct Manila–New Delhi flights, the first in years. The route is expected to cut travel time from as long as 20 hours to just six hours.

President Marcos’ state visit to India is bearing fruit this early. India is a friendlier nation that we should cultivate more.

E-mail: rayenano@yahoo.com

or extrastory2000@gmail.com

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