Partnership for the Future: Exploring the Potential of India-Philippines Relations : Daily News Analysis

Date : 01/07/2023

Relevance: GS Paper 2 : International Relations - Bilateral relations

Keywords: Raisina Dialogue, Act East Policy, ASEAN, Digital India

Context -

  • The year 2022 marked a significant turning point for global affairs, as countries shifted their focus towards international trade, commerce, and strategic partnerships. Against this backdrop, the Philippines and India have reignited their cooperation after almost three years of dormancy, aiming to strengthen their bilateral ties as both nations seek economic resurgence and resilience in the post-pandemic era.

India-Philippines Relations:

India and the Philippines share a history of friendly relations, yet the full potential of their partnership remains unrealized. Despite common values such as anti-colonialism, South-South cooperation, robust democratic systems, an independent judiciary and press, and English language proficiency, there exists a lack of informed knowledge about each other.

Political, Security, and Defense Cooperation:

  1. Intensified Engagement: With India's Look East Policy in 1992 and subsequent Act East Policy in 2014, India's partnership with ASEAN nations, including the Philippines, has expanded.
  2. Memorandums of Understanding (MoUs): Multiple MoUs have been concluded, covering the defense industry and logistics cooperation, agriculture, MSMEs, and academic collaboration.
  3. Defense Cooperation: Capacity building, training, and exchange visits form the core of bilateral defense cooperation.

Trade and Commerce:

  1. Rapid Growth Potential: Economic relations between India and the Philippines have witnessed significant growth in recent years.
  2. Investment Opportunities: Indian investments in the Philippines primarily focus on textiles, IT&ITES, infrastructure, chemicals, automobiles, and pharmaceuticals.
  3. Collaboration in BPO Sector: Collaboration between Indian and Filipino companies in the BPO sector has experienced exponential growth.

Culture and People-to-People Relations:

  1. Training Programs: The Philippines benefits from Indian training programs such as ITEC and Colombo Plan.
  2. Tourism and Exchanges: People-to-people links have strengthened, with an increasing number of Indian tourists visiting the Philippines annually.
  3. Indian Community: The Indian community in the Philippines actively engages in celebrating Indian festivals, social events, and charitable activities.

While India and the Philippines enjoy friendly relations, there remains substantial untapped potential in their partnership. To fully realize this potential, it is crucial to enhance mutual understanding, expand trade and investment, strengthen defense cooperation, and foster cultural exchanges. By leveraging the existing historical ties and shared values, both nations can forge a deeper and more prosperous relationship in the years to come.

Renewed Energy in the Relationship:

  • The visit of India's External Affairs Minister, S. Jaishankar, to Manila in February 2022, along with a meeting with the then Philippine Foreign Affairs Secretary, Teodoro L. Locsin Jr., during the 2022 Raisina Dialogue, and the 13th Philippine-India Policy Consultations in Manila have injected new energy into the relationship.
  • This wave of renewal and recommitment paves the way for a transformative 21st-century partnership.

Promising Economic Trajectories:

  • India's economic trajectory is highly promising, with projections indicating that it will become the world's third-largest economy by 2027. With an average GDP growth rate of 5.5% over the past decade, India stands as the fastest-growing among the large economies.
  • At the same time, the Philippines is on track to achieve upper-middle-income status and become a trillion-dollar economy by 2033.
  • Both nations are committed to fostering greater inclusion and empowering their growing populations as they pursue strategies for a prosperous and climate-proof future.

Harnessing the Power of the Indo-Pacific:

  • To leverage the potential of the Indo-Pacific as a catalyst for growth, intensified regional cooperation is crucial. Strengthening economic integration, improving connectivity, and promoting innovation are key to bolstering the region as a global economic powerhouse.
  • The Philippines and India, known as champions of the rule of law and inclusive multilateralism, play significant roles in advancing these objectives.

Expanding Trade and Economic Cooperation:

  • There are promising prospects for expanding trade and economic cooperation, particularly in the fields of innovation, new technologies, and clean energy.
  • Business-to-business partnerships can be scaled up to leverage synergies between the two economies, taking advantage of India's leadership in renewable energy, especially wind and solar power.
  • The Philippines has made substantial investments in renewable energy technologies, particularly solar energy, with over 280 billion Philippine pesos invested between 2009 and 2022. Moreover, wind power has gained prominence in the country's energy sector, with a significant volume of investments and pledges in this area during the first half of 2023.

Unlocking Synergies:

  • Opportunities for collaboration can also be unlocked in the context of India's "Digital India" project and the Philippines' efforts to strengthen its digital infrastructure.
  • As the Philippines works towards becoming a spacefaring country by 2030, enhanced capacity-building and collaboration between the Philippine Space Agency and the Indian Space Research Organisation (ISRO) are on the horizon.

A Stronger Economic Partnership:

  • Both Manila and New Delhi are committed to forging a more robust economic partnership in the coming years. Recent reforms in the Philippines' business regime, covering foreign investment, public service, and retail trade, have added momentum to this endeavor.
  • The relationship between the two countries extends beyond the economic sphere, encompassing defense and security cooperation as well.
  • The procurement of India's BrahMos Shore-based Anti-Ship Missile System by the Philippines' defense forces, through a $374-million contract signed in January 2022, represents just the first step in this regard.

Engaging within Regional Frameworks:

  • The reinvigoration of the Philippines-India relationship is also driven by their engagements within the framework of the Association of Southeast Asian Nations (ASEAN), which enjoys a constructive dialogue partnership with India.
  • India's "Act East Policy" further aims to strengthen economic, strategic, and cultural relations in the Indo-Pacific region. Intensified regional cooperation, enhanced connectivity, and innovation are vital components in harnessing the potential of the Indo-Pacific region.
  • The Secretary for Foreign Affairs of the Philippines will meet Minister Jaishankar in New Delhi for the fifth iteration of the Philippines-India Joint Commission on Bilateral Cooperation. This meaningful exchange aims to set a firm course for a stronger partnership that builds upon the almost 75 years of diplomatic ties shared by the two democratic Asian republics.

Conclusion

There has never been a better time to revive efforts and maximize the potential of the Philippines-India relationship. Both nations recognize the shared interests and benefits that can be derived from fostering a closer partnership. As they navigate the challenges and opportunities of the 21st century, the Philippines and India are poised to strengthen their ties and explore new avenues for collaboration in various fields.

Probable Questions for mains exam

  1. How can the Philippines and India enhance their economic partnership to leverage their respective trajectories of growth and achieve their shared goal of a prosperous and climate-proof future? (10 Marks, 150 Words )
  2. Discuss the significance of regional cooperation, particularly within the framework of ASEAN and India's Act East Policy, in strengthening the Philippines-India relationship and harnessing the potential of the Indo-Pacific region for economic integration, improved connectivity, and innovation. (15 Marks, 250 Words)

Source : The Hindu