India-Philippines Trade Set to Double in Next Decade, Says FICCI Philippines President

Manila, November 13 (Daily Kiran) : Vishal Vishnu Hathi Ramani, President of the Federation of Indian Chambers of Commerce (FICCI) Philippines, highlighted the potential for a significant increase in trade between India and the Philippines during a recent interview. He emphasized the economic importance of Prime Minister Narendra Modi’s upcoming visit to the Philippines, which is expected to strengthen bilateral relations.

Hathi Ramani noted that trade between the two nations has already seen remarkable growth, rising from approximately $2 billion in 2016 to about $4 billion today. He expressed optimism that if this momentum continues, trade could double again within the next ten years.

Tourism was identified as one of the most promising sectors for enhancing trade. Hathi Ramani mentioned that the introduction of visa-on-arrival for Indian citizens and direct flights between the countries are creating significant opportunities in tourism.

In addition to tourism, he foresees growth in sectors like IT, BPO, and pharmaceuticals. Existing business relationships in these areas could pave the way for new partnerships. Hathi Ramani also pointed out the growing defense cooperation, particularly following the BrahMos missile deal between India and the Philippines, which has opened new avenues for military collaboration.

He described the Philippines as a crucial business bridge between India and the ASEAN region, which boasts a population of around 700 million. This partnership could facilitate easier access for Indian companies to the larger ASEAN market.

With both nations being large democracies and sharing demographic similarities, Hathi Ramani believes that the widespread use of English in both countries will further ease the entry of Indian firms into ASEAN markets.

He highlighted the vast potential for Indian companies in sectors such as IT, pharmaceuticals, infrastructure, renewable energy, and manufacturing. Recently, a significant number of Indian businesses participated in the ASEAN-India Business Forum, with many visiting the Philippines for the first time and discovering its investment potential.

The ASEAN-India Trade in Goods Agreement (AITIGA) is also seen as a key factor in strengthening economic ties. Hathi Ramani mentioned that the agreement is currently under review, and its finalization could lead to a surge in trade and investment between India and ASEAN.

In light of global supply chain shifts aimed at reducing dependence on China, India is increasingly viewed as a vital manufacturing and investment partner for ASEAN nations. Hathi Ramani emphasized that ASEAN countries can engage with multiple partners, making India a strategic player in the region.

Plans are underway to develop a special industrial zone in the Philippines to boost private sector investment. This initiative includes establishing a dedicated park for Indian pharmaceutical, IT, and BPO companies in Victoria, Tarlac, located about two hours from Manila. Hathi Ramani expressed hope that this could become the first specialized economic area for Indian firms, fostering new investment opportunities between India and the Philippines.