PHL to benefit from improved relations with India

The Philippines will benefit from improved relations with India, the Hongkong and Shanghai Banking Corp. Ltd. (HSBC) said Wednesday.

“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,” Wick Veloso, HSBC president and CEO for the Philippines said in an emailed statement.

President Rodrigo Duterte recently flew to New Delhi for the culminating activities of the 25th anniversary of the ASEAN-India relations and India’s Republic Day.

Duterte was reported to have discussed trade, defense, and education with Indian Prime Minister Narendra Modi.

According to Trade Secretary Ramon Lopez, Indian firms have committed to invest at least $1.25 billion in the fields of energy, tourism, pharmaceutics, medical wellness,
information technology, and business process management.

“The Philippines is a tried and tested diversification move for IT companies in India,” Veloso noted.

“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,” he said.

The government plans to spend over P8 trillion until 2022 on the golden age of infrastructure, largely funded by tax revenue.

The Philippines plans to roll out big-ticket projects this year, cumulatively valued at $35.5 billion or P1.1 trillion.

“India is now establishing itself in the Philippines, moving from historic strong points such as garments and microlending to services and beyond,” Veloso said.

"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,” he said.

Data from India’s Ministry of External Affairs showed trade between India and the totaled $1.981 billion in 2016-2017—imports to the Philippines amounted to $1.487 billion, while Philippine exports reached $494 million. 

Source: GMA News