India, one of the largest economies in South Asia, has been identified as a destination for Filipino exporters with its growing market for Philippine products and the existence of preferential trade agreements.
During the Markets of the World forum hosted by the World Trade Center Metro Manila, Dr. Jhino B. Ilano, assistant director of the Export Marketing Bureau of the Department of Trade and Industry (DTI), reported unrealized export potential in India estimated at $566.92 million.
These exports could come from electronics, Halal-based products, personal care and beauty products, coconut products, and other organic products such as dairy products and eggs.
Filipino exporters can also take advantage of the ASEAN-India Free Trade Agreement (AIFTA) where the Philippines enjoys reduced tariffs for 94 percent of exports to India.
Speaking before over 60 participants, Dr. Ilano said total trade with India has been growing by 4.2 percent (CAGR) from 2018 to 2022, reaching $2.8 billion in 2022. Total exports were at $2.1 billion while imports totaled $701.4 million.
India ranks as the country’s 15th largest trading partner with a 1.31 percent share of total trade with the Philippines. It is 16th among the country’s export markets with a 0.89 percent share of total exports, and 14th among import suppliers with a 1.53 percent share of total imports.
Raju Mandhyan, former chairman of the Philippines India Business Council (PIBC), meanwhile said India is the fastest growing large economy in the world before and after the pandemic.
He said India has large domestic demand, with demand outpacing supply. Two-thirds of GDP is reportedly accounted for by domestic demand, driven by a large market of 1.4 billion population – the largest human resource in the world.
Mandhyan said the potential investment areas in India are in the field of beauty and wellness, tourism and travel, luxury goods, food and beverages, and aqua and seafood products. Imports from India meanwhile, include engineering goods like machinery, equipment and components, pharmaceuticals, and educational content.
“India is such an exciting market with many positive developments happening in various sectors,” said WTCMM chairman Pamela D. Pascual. “Progress is seen in trade, investment, economic, scientific, and technical cooperation. With the world’s exponential growth in digitalization and globalization, both countries have emerged as frontliners in the service sectors, particularly in the business process outsourcing industry. WTCA alone has over 60 license holders acro
Pascual said the WTCMM is putting together a Philippine delegation to participate in the annual World Trade Centers Association (WTCA) Global Business Forum hosted by WTC Bengaluru, India in March 2024. At these annual WTCA gatherings, trade delegations from different parts of the world participate in B2B meetings and collaborations.
