India, Philippines share immense interest areas in economic cooperation: Report

New Delhi: India and the Philippines share multiple areas of economic cooperation, highlighted by the recent visit of Philippine President Marcos Jr. to India.

During his trip, Marcos met with key business leaders, culminating in the signing of 18 trade agreements across sectors such as renewable energy, healthcare, education, and information technology.

“The visit secured $446 million in direct investment for the Philippines, with potential Indian investments projected to rise to around $5.7 billion,” reported moderndiplomacy.eu.

Bilateral trade between India and the Philippines remains limited, amounting to only $3.5 billion in 2023–24—just 2% of India’s total trade with ASEAN. This underscores the need for deeper economic engagement, especially amid tariff threats from former US President Donald Trump.

According to Modern Diplomacy, Philippine Foreign Affairs Secretary Enrique Manalo estimates India’s untapped export potential to the Philippines at $577 million.

As a developing nation, the Philippines seeks infrastructure investments. China had pledged significant funding, including $5 billion for three railway projects under its Belt and Road Initiative (BRI), but delays led Manila to withdraw from BRI-backed ventures.

India could step in to bolster the Philippines’ infrastructure push. The GMR Group has shown interest in financing Marcos’ Build Better More Program, particularly in projects like the Cavite airport at Sangley. Additionally, Indian firms could partner with Japanese or American companies in infrastructure development.

Green technology presents another collaborative opportunity. The Philippines, the world’s second-largest nickel producer, exports 98% of its nickel to China. As India’s EV sector grows and domestic battery production expands, securing nickel supplies becomes essential.

During Marcos’ visit (August 4–8), the two nations elevated their ties to a Strategic Partnership (SP), making India the fifth country (after Japan, Australia, South Korea, and Vietnam) to establish such a relationship with the Philippines.

Marcos described the visit as a “new beginning” for India-Philippines relations, citing productive discussions with Indian leaders and business figures.