Phl, India seen as strong allies under one economy

The Philippines and India can be powerful allies under the integrated ASEAN economy, an economist said.

“There lies a manifold of opportunity for India to build itself as a powerful ally to ASEAN. Over here, the current Philippine administration has placed great importance in its relationship with India. There is every reason to further improve trade relations between India and the Philippines, considering India’s commerce in ASEAN and the Philippines being the third-largest economy in ASEAN," said Wick Veloso, HSBC President and CEO in the Philippines.

According to Veloso, the Philippines is a tried and tested diversification move for IT companies in India.

"Presently, most of our Indian clients are involved in business process outsourcing and services, and the Indian majors are now beginning to look with interest at the infrastructure opportunity," Veloso added.

India is now establishing itself in the Philippines, moving from historic strong points such as garments and micro-lending to services and beyond.

"Obversely, with the ascent of the Philippine economy and the strength of our local conglomerates, we anticipate more growth in the other direction. We currently see Philippine activity in the Indian BPO sector but in the future expect diversification," noted Veloso.

With the ASEAN at the center of India’s Act East Policy, Veloso forecasted that many opportunities for customers in India and the Philippines especially in pharmaceuticals, telecommunications, engineering and infrastructure.

The Philippines has witnessed a steep rise in Indian IT (Information Technology) companies setting up business processing operations in Manila. Indian IT companies investing in the Philippines contribute to income generation and employment.

Apart from IT, India and the Philippines are also presented with cross-border opportunities in infrastructure, energy, automotive and monitoring as well as pharmaceutical and affordable healthcare.

Having established diplomatic relations as far back as 1949, India and the Philippines have also been long cooperating in the areas of security, military and counter terrorism – exchanging intelligence and experience with the Philippine Navy, Army and Air Force.

Apart from having a young population, both India and the Philippine are also strong in service expertise, deployment of overseas workers, and proficiency in the English language. In terms of tourism, India looks forward to bringing in more tourists to the Philippines as flights between the two countries improve.

But all this only touches the surface of what could be possible if India and ASEAN worked to reduce the barriers that currently still stand in the way of greater bilateral trade and investment flows.

At present ASEAN is India’s fourth-largest trading partner, accounting for 10 percent of India’s total trade, while India is ASEAN’s seventh-largest trading partner.

Both sides have set a target of at least $ 200 billion in twoway trade by 2022 compared to $ 65 billion in 2015.