PH lures investment pledges, eyes entry of cheap meds from India

Rodney N. Artida, Arem Bolalin | January 30, 2018

Photo from Philstar.com

The Philippines secured 1.25-billion-dollar worth of investment pledges from Indian Companies President according to Trade Secretary Ramon Lopez.

The investment pledges come after President Rodrigo Duterte’s official visit to India for the 2018 India – ASEAN Summit.

Presidential Spokesperson Harry Roque said in a press briefing with Trade Secretary Lopez that the new Indian trade and investment commitments would generate 105,000 jobs for Filipinos.

However, Lopez clarified this figure was just the minimum as the numbers could increase as companies who have pledged for investments and expansions have yet to finalize their plans.

Business engagements between the Philippines and India have also led to 12 business agreements, two Memorandum of Understanding (MOUs), and 10 letters of intent with the majority of the commitments would be in IT-BPM (Information Technology-Business Process Management) firms.

Trade Secretary Lopez pointed out that a bulk of investment pledges came from Indian renewable energy giant Adani Green Energy Limited with $1 billion investment plans to expand their operations in the Philippines, generating 3,000 jobs.

There were also plans for business expansions in the sectors of infrastructure development, customer service, tourism, software services, wellness and pharmaceuticals.

Other companies that signed letters of intent to invest in the Philippines were aviation firm Interglobe Air Transport Ltd., IT consulting firm KG Information Systems Private Ltd, The Farm at San Benito (Narra Wellness Resorts Inc.) which is planning to expand their operations in Davao and Palawan, Tech Mahindra and Hinduja Global Solutions which committed 2000 jobs each.

The National Association of Software and Services Companies of India (NASSCOM) and the IT Business Processing Association of the Philippines (IBPAP) signed a memorandum of understanding to promote development and growth of the information technology industry.

The IBPAP vowed to increase growth and employment for the IT-BPM industry in the country. The IT industry is projected to have a $38.3-billion-dollar revenue and an estimated 1.8 million jobs by 2022.

Meanwhile, the Philippines’ Board of Investments signed an agreement with Invest India which aims to encourage direct investment between the two countries.