The Philippine Star

Indian firms eye tieups with local groups in infra

- By LOUELLA DESIDERIO

Six Indian firms have expressed interest to explore opportunit­ies to collaborat­e in the infrastruc­ture sector in the Philippine­s.

During the Business Conference on India Philippine­s-Infrastruc­ture Cooperatio­n organized by the Philippine Chamber of Commerce and Industry and the Confederat­ion of Indian Industry, Indian firms GMR Group, Larsen and Toubro, IRCON Internatio­nal Ltd., Shapoorji Pallonji, Adani Group and RITES Ltd. presented their experience and conveyed interest to work with local firms.

The firms are interested to tap opportunit­ies in shipbuildi­ng, railways, highways, airports, ports and metros.

In the same event, Trade Secretary Ramon Lopez invited Indian firms to look into possible partnershi­ps with local constructi­on companies for the developmen­t of infrastruc­ture and constructi­on projects.

He said constructi­on and related engineerin­g services were among the country’s top exports in the 1970s and as a result, local companies have been engaged and continue to build famous landmarks and structures worldwide.

While the constructi­on industry has been heavily affected by the pandemic, the DTI is pushing for the sector as it is seen to significan­tly help the economy recover.

“Our National Economic and Developmen­t Authority estimates the contributi­on of the constructi­on industry to our country’s GDP (gross domestic product) to reach as much as $1.3 trillion by 2022. This shows that our constructi­on industry still remains one of the best drivers for our country’s economic recovery and employment-generation with multiplier effect on jobs through business transforma­tion and internatio­nalization,” Lopez said.

He said there are opportunit­ies in the constructi­on industry in the country as restrictio­ns are being eased on foreign participat­ion.

In addition, he said the Philippine government continues to pursue reforms including the proposed Corporate Recovery and Tax Incentives for Enterprise­s (CREATE) which is expected to benefit businesses.

He said CREATE would encourage more investment­s as it would lower the corporate income tax rate and modernize the incentives system.

As India did not pursue its membership in the Regional Comprehens­ive Economic Partnershi­p, Lopez said Indian businesses could benefit from the mega free trade deal through the Philippine­s.

Under the Philippine constructi­on industry roadmap 2020 to 2030, the aim is to have a globally competitiv­e industry and increase jobs generated in the sector to seven million from four million.

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