Manila and New Delhi: A 21st Century Partnership

Context:

Philippines Secretary for Foreign Affairs Enrique A. Manalo is on an official visit in India from June 27 to 30 and recently held bilateral talks with his Indian counterpart. 

Image Source: Encyclopedia Britannica

Ties between the Two Nations:

• Historical Ties: Robust pre-colonial ties are evident in centuries-old ancestral gold jewelry from the maritime kingdoms of the Philippines depicting the “kinnari” of Hindu and Buddhist mythology.
  • The struggle for independence and subsequent nation-building on the basis of democratic principles and ideals form a tapestry of common national narrative, which brings forth a sense of solidarity and mutual understanding between peoples of both countries. 
• Diplomatic Ties: India and the Philippines formally established diplomatic relations in 1949, shortly after both countries gained independence (Philippines in 1946 and India in 1947). 
• Look East Policy: After its launching, partnership intensified with ASEAN in 1992, and also simultaneously resulted in intensified relations with the Philippines both bilaterally and in the regional context. 
• Act East Policy: With this policy, relationship with the Philippines has diversified further into political-security; trade and industry, etc.
• Other Groupings: The Non-Aligned Movement (NAM) and Group of 77 have provided the backdrop for the Philippines and India to work with developing country partners. 
  • Both have served as beacons of independence and self-determination of States and the voice of the developing world at the dawn of the United Nations (UN).
• Economic: India has a positive trade balance with the Philippines. 
  • During the last 26 years the exports of Philippines to India have increased at an annualized rate of 15.9%, from $20M in 1995 to $923M in 2021. 
  • In 2021, the Philippines did not export any services to India. Comparison In 2021, India ranked 41 in the Economic Complexity Index (ECI 0.61), and 14 in total exports ($403B)
• Political: Both are steadfast champions of the rule of law, democracy, and multilateralism. 
  • Both have consistently advocated for outcomes-based approaches to address critical global issues. 
• People to People: The Indian community in the Philippines has become an integral part of the population. The Philippines is also beginning to emerge as a destination for Indian students.
  • The Indian community in the Philippines, according to the Bureau of Immigration, is estimated to be about 1, 30,000. Around 5,000 persons of Indian origin have acquired Filipino citizenship.

Economy & Growth Trajectory:

• India: 
  • India’s economic trajectory is highly promising, with projections indicating it will become the world’s third-largest economy by 2027. 
  • With an average GDP growth of 5.5 per cent over the past decade, India is the fastest-growing among the large economies.
• Philippines:
  • The Philippines is on the threshold of achieving upper-middle-income status and becoming a trillion-dollar economy by 2033. 

Similarity of Goals between the Two Countries: 

• Socio-Economic Agenda: To facilitate conditions for reducing poverty, and for sustaining economic growth, and resilience in sectors like agriculture, energy, and infrastructure. 
• Inclusion & Empowerment: Both nations are deep into fostering greater inclusion and the empowerment of the growing populations, and driving smarter strategies for a prosperous and climate-proof future.

Challenges in the Relations:

• Even as India and the Philippines are inching closer on security and defense cooperation, the China influencing factor would be a challenging one.

Unlocking of Synergies:

• Innovation & Technology: There is huge potential for expanding trade and economic cooperation in innovation and new technologies.
  • The opportunities in, and complexities of the cyber- and outer-space domains also present potentials for expanding our bilateral cooperation.
• Food and Energy Security: Both nations confront the challenge of meeting the needs of our expanding populations in the face of climate change. Collaborations on latest research and application of new technologies to enhance agricultural output and bolster resilience against natural disasters. Aspire to expand collaboration on fisheries and marine culture, tapping into the vast potential of our coastal resources for sustainable development.
• Clean & Renewable Energy: Business-to-business partnerships can be upscaled to leverage synergies in the development of renewable energy, particularly wind and solar power. 
• Maritime Security: The maritime nations situated at the crossroads of the world’s busiest sea lanes, the Philippines and India share a vested interest in maritime security and the preservation of invaluable marine resources. 
  • Intensify engagement on knowledge-sharing and capacity-building initiatives to uphold seafaring standards, promote adherence to maritime trading rules, and enforce marine environmental protection measures. 
• Digital Connectivity: Synergies can also be unlocked in the context of the “Digital India” project and the Philippines’ spirited shoring up of our digital infrastructure. 
• Space Collaboration: The Philippines works to become a spacefaring country by 2030, more vigorous capacity-building and collaboration between the Philippine Space Agency and the ISRO are on the horizon.
• Economic Partnership: The pursuit of a more robust economic partnership in the coming years draws vigor from recent reforms in the Philippines’ business regime, covering foreign investment, public service, and retail trade.
• Defence & Security: The signing of a $374-million contract for the procurement by the Philippines’ defense forces of India’s BrahMos Shore-based Anti-Ship Missile System in January 2022, signals only a first step and many more deals are in near future to be done.
• Constructive Dialogue Partnership: Both countries are reshaping the contours of the relationship across many aspects.
  • It is also driven by engagements within the framework of ASEAN, which enjoys a constructive dialogue partnership with India.
  • India’s Act East Policy aims to strengthen economic, strategic, and cultural relations in the Indo-Pacific region.

Conclusion:

To harness the power of the Indo-Pacific as a catalyst for growth, more intensified regional cooperation is essential. Stronger economic integration, improved connectivity, and increased innovation are key to buttressing the region as a global economic powerhouse. As champions of the rule of law and inclusive multilateralism, the Philippines and India play important roles in this respect.

News Source: Indian Express