BILATERAL RELATIONS BETWEEN INDIA AND THE PHILIPPINES

Historical Perspective:

Contacts between India and the Philippines could be traced back to Malay culture, which has a clear imprint of Indian and Islamic influence. Archaeological evidence suggests that the two countries had trade relations as early as the beginning of the Christian era. Coinage of Indian origin going back to 1800 years, have been found in the Philippines. Sanskrit words are found in abundance in the local languages, indicating deep cultural and linguistic ties. Ramayana is still a popular play in some parts of the country. In the recent times, during 1762-64. Great Britain occupied Manila as part of the Anglo-Spanish wars. Most of the 600 Indian soldiers, who formed part of the military expedition of the East India Company, stayed back in the Philippines and settled down in Cainta, about 50 km. away from Manila.

After the Independence of the Philippines in 1946 and that of India in 1947, the two countries established formal diplomatic relations on November 16, 1949. Based on the shared values of anti-colonialism, the two countries have maintained good cordial relations.  As members of various multilateral fora, the two countries have coordinated their positions on several regional and international issues.

Framework for bilateral relations:

Over the years, the two countries have signed several agreements, which provides a broad framework for our bilateral ties. The agreements/MOUs signed between the two countries include Air Services Agreement (1949), Cultural Agreement (1969), MOU for Scientific and Technical Cooperation in Agriculture between ICAR and PCCARD (1976), Trade Agreement (1979), Basic Agreement on Scientific and Technological Cooperation (1987), Basic Agreement on Economic and Technical Cooperation (1990), Convention for Avoidance of Double Taxation and the Prevention of Fiscal Evasion (1990), Agreement for Cooperation for the Utilization of Atomic Energy for Peaceful Purposes (1991), MOU on Scientific and Technological Cooperation with Focus on Pharmaceuticals (March 1997), MOU between the National Small Scale Industries Corporation Ltd. and the Bureau of Small and Medium Business Development (March 1997), MOU on holding of Annual Policy Level Foreign Office Consultations (2000), Agreement for Promotion and Protection of Investments (2000), MOU between Jawaharlal Nehru University and University of Philippines (2003), MOU between the Gas Authority of India Limited (GAIL) and the Philippine National Oil Company (PNOC) (Sept. 2003), MOU between GAIL and the Department of Energy (2003), MOU between Pharmexcil and the Philippine International Trading Cooperation (November 2004), Extradition Treaty (March 2004), Agreement on Defence Cooperation (February 2006), Agreement on Cooperation in the Field of Tourism (February 2006) and MOU on Cooperation in the Field of Agriculture and Related Fields (February 2006).

High Level Visits:

          Exchange of high level visits between the two countries have been comparatively limited. Prime Minister Indira Gandhi came on a stopover visit to Manila in 1981 on her way back from Australia. President Shri R. Venkataraman paid a state visit to the Philippines in 1991. From the Philippines side Vice President Diosdado Macapagal visited India in 1961. President Fidel V. Ramos paid a state visit to India from March 2-5, 1997. Former President Ramos visited India in June 2001 as special envoy of President Arroyo.

Minister of State for External Affairs Smt. Vasundhara Raje visited the Philippines in June 1998.  Shri Jaswant Singh, in his capacity as Deputy Chairman, Planning Commission, led the Indian delegation to the ASEAN Regional forum and the ASEAN Post Ministerial Conference held at Manila in July 1998.  Shri V. Dhananjaya Kumar, Minister State for Finance, visited Manila in January 2000 when the Indo-Philippine Agreement on Promotion and Protection of Investments was signed. Mr. Orlando Mercado Secretary of National Defence visited India in October 1999 to visit DEFEXPO held in New Delhi. Angelo Reyes, Secretary National Defence visited India for DEFEXPO 2002 from February 18-21 2002 at the invitation of Raksha Mantri.

The Speaker of Lok Sabha, Shri. Somnath Chatterjee led an 8-member Parliamentary delegation, including Deputy Speaker, Shri. Charanjit Singh Atwal, and Deputy Chairperson, Rajya Sabha, Shri. K. Rahman Khan, to the Philippines to attend the 112^th Assembly of the Inter-Parliamentary Union, from 3-8 April, 2005.  The Speaker was awarded a Congressional Medal of Achievement and honoured with a Citation by the Philippine Speaker, Mr. Jose de Venecia.  Shri E. Ahamed, Minister of State for External Affairs visited Manila on a goodwill visit from 8-10 September 2005.  During his visit he met A. G. Romulo, Secretary, Department of Foreign Affairs and called on former President Fidel V. Ramos.

Visit of President Dr. APJ Abdul Kalam to the Philippines:  President Dr. APJ Abdul Kalam paid a state visit to the Philippines from 3-6 February 2006.  President Kalam held talks with President Arroyo.  Two Agreements and a MOU were signed during the visit:  Agreement on Defence Cooperation, Agreement on Cooperation in the Field of Tourism and MOU on Cooperation in the Field of Agriculture and Related Fields.  President Kalam addressed the Joint Session of the Philippine Congress.  His other programme included visits to: College of Nursing, University of Philippines, Manila; Philippines Science High School; University of Philippines, Diliman; International Rice Research Institute; and Philippines Institute of Volcanology and Seismology (PHILVOLCS).

Bilateral Trade

According to statistics of DGCIS (Directorate General of Commercial Intelligence and Statistics of India), bilateral trade between India and the Philippines increased from US$ 265.65 mn. in 2000-01 to US$ 577.08 million in 2004-05.  Indian exports to Philippines recorded a 22.90% rise in 2004-05 to US$ 395.16 (from US$ 321.53 mn. in 2003-04) and imports a 48.98% rise to US$ 181.92 mn. (from US$ 122.11 mn. in 2003-04).    During April-December 2005-06, our exports recorded an impressive growth of 23.83% to US $ 348.67 million from US $ 281.56 million during the corresponding period of 2004-05. Imports in the same period were up by 11.39% to US $ 163.35 million from US $ 146.64 million a year earlier.

Major items of Indian exports are:  frozen buffalo meat, pharmaceuticals, iron and steel manufactures and tools, textile yarn, petrochemicals, auto and motorcycle parts, cereals, organic chemicals, electronic components, etc.

Major imports from Philippines are: semi-conductors, inorganic chemicals, auto parts, newsprint, minerals, garments and miscellaneous industrial products.

BILATERAL TRADE STATISTICS

(Value in Million US$)

(Source: Directorate General of Foreign Trade, India)

Major Exports from India to Philippines

(Value in Million US $)

(Source: Directorate General of Foreign Trade, India)

Major Imports to India from Philippines

(Value in Million US $)

(Source: Directorate General of Foreign Trade, India)

Investments and Joint Ventures

·        India and Philippines signed an Agreement on Avoidance of Double Taxation and Prevention of Fiscal Evasion in 1990, and an Agreement for Promotion and Protection of Investments in 2000.  Indian investments in the Philippines are mainly in the field of textiles, IT and recently steel and oleo-chemicals.  Philippine investments in India are in telecommunications, IT, reprocessing of waste and human resource development (management education).  Following is the list of investments between the two countries:

·        Global Steelworks International Inc.(GSII): In 2004, Ispat Group, took over the defunct National Steel Corporation in Iligian City, Mindano province.  The deal is valued at approximately US$ 225 million payable over a period of 8 years. The plant was inaugurated on 3^rd February 2004 and has since started exporting cold rolled coils.

·        Indo-Phil Textiles:  A joint venture of Birla Group, established in 1975 is primarily engaged in knitting and weaving of yarn.  About 40% of Philippine consumption of yarn is sourced from Indo-Phil.

·        Kewalram Philippines:      A joint venture of Kewalram Chanrai Group established in 1989 was engaged in production of yarn.  This has since closed down presumably due to non-viability following removal of textile quotas.

·        In 2003, the Hinduja TMT acquired controlling interest and management control in C-Cubed, a call center in Manila with 700 seats and employing over 1200 people.

·        NIIT: NIIT, in partnership with Mindstream, operated five IT educational institutions in Manila under a franchise agreement from 2001 to 2004.  However, due to differences with the Filipino partner, NIIT did not renew its partnership with Mindstream, and the centres have been closed.  NIIT has, in partnership with another Filipino company, opened one centre in Baguio in 2004, which is running successfully.  NIIT is now in the process of finding a new stable partner for opening centres in Manila and Cebu.

·        APTECH India-Ascent Network Solutions was established in 2000, as a franchise agreement for opening of IT educational institutions in the Philippines. The joint venture ran successfully for about three years, but was closed down in 2004 owing to internal problems of APTECH in India.

·        In July 2005 M/s Lakshmi Organics Ltd., was awarded a contract for oil exploration in Mindoro Island.

·        Pan Century, the Malaysian coy of the Aditya Birla Group has aquired M/s. Primo-Oleo-chemical plant in Jose Panganiban, Camarines Norte in January 2006.  The plant’s new name is Pan Century Surfactants Inc., and it is expected to commence production by mid-2006.

Philippine investments in India:

·        J.V. Merida Ecological Industries:    This joint venture was set up in 2001 in Bangalore, India, for processing of waste.

·        Ayala Group teamed up with L&T for consultancy for construction of the Howrah road bridge.

·        Philippine Wireless Inc. - Usha India Ltd: Set-up in India in 2000, the joint venture was primarily engaged in providing paging services.

·        Thapar Institute of Technology, Pune and Asian Institute of Management:  signed an agreement in 2001, which provides for collaboration between the two institutions in management education in Pune, India.

·        SPI Technologies Inc., a provider of IT-enabled business process outsourcing solutions, expanded book services capabilities in India through the acquisition of Kolam Information Services in 2003.

Commercial delegation visits:

A delegation sponsored by the Electronics and Computer Software Export Promotion Council (ESC) visited Manila From 16^th to 18^th January 2005.  A Buyer Seller Meet between the delegation and Philippine companies was organized on 17^th January.

An Indian trade mission sponsored by the Basic Chemicals, Pharmaceuticals & Cosmetics Export Promotion Council (CHEMEXCIL) and the Pharmaceutical Export Promotion Council (PHARMEXCIL) visited Manila From 6-8 March 2005 to promote export of Indian drugs and pharmaceuticals, herbal medicines, chemicals, dyes and cosmetics.  A Business Meeting and One-on-One Business Meeting was organized on 7^th March by the Embassy of India, in association with the Philippine Chamber of Commerce and Industry (PCCI) and the Philippine International Trading Corporation (PITC). 

A 10-member delegation of paper, paper board and paper products, sponsored by CAPEXIL, visited Manila From 5-9 August 2005, A Buyer Seller Meet was organized by the Embassy on 8^th August 2005 Mission, in association with the Philippine Chamber of Commerce and Industry (PCCI). 

A 7-member delegation sponsored by CII (Goa Council) visited Manila From 8-10 August 2005.  The Philippine Government organized briefings for the delegation by the Board of Investments, Bureau of Mines, Philippine Economic Zone, Philippine Chamber of Commerce and Industry and by Undersecretary Edsel Cusodjo in the Department of Foreign Affairs. 

Senator Richard Gordon, former Tourism Secretary of Philippines, visited India from 26^th November to 2^nd December 2005, at the invitation of the Commerce & Industry Minister of India.   During his visit, the Senator addressed the India Economic Summit at the Plenary Session on “India and the World”.

A business delegation led by former President of the Philippines, Mr. Fidel V. Ramos, visited India from 15^th to 20^th January 2006.  The delegation comprised Government officials from the Departments of Trade & Industry and Foreign Affairs, Chairman of Philippine International Trade Corpn (PITC) Secretary Roberto Pagdanganan, representatives of Philippine companies from pharmaceuticals, IT, TV/movie production, telecom, logistics, etc. and representatives from Filipino Indian Chamber of Commerce, Ramos Peace and Development Foundation and Asian Institute of Management.  The delegation visited Mumbai, Kolkata and New Delhi.  In Kolkata, President Ramos addressed the Partnership Summit organized by CII.

Technical Cooperation:

The Philippines is one of the largest beneficiaries of Indian Technical Economic Cooperation (ITEC) and Colombo Plan.  Each year 25 ITEC slots and 43 Colombo Plan slots are earmarked for the Philippines, with their utilization ranging over 90% in the past three years.  More than 760 Filipino nationals have benefited under these schemes, covering a wide range of technical courses e.g. computer software, agriculture and rural development, water resources management, small scale industries, banking, finance and accounts, quality control and marketing, planning and public administration, research and development, textiles, etc.

Cultural and Educational Exchanges:

A Cultural Exchange Agreement between the two countries was signed in 1969, under which the last Executive Program of Cultural Exchanges (CEP) was implemented during 1995-97.  Despite absence of formal CEP, cultural and educational exchanges from either side have taken place regularly.  These include:-

i.        Three classical dance troupes (Kathakali, Odissi and Manipuri) sponsored by Indian Council for Cultural Relations (ICCR) visited Philippines 2002-04.  A 35-member ASEAN Production “Realizing Ramayana” Troupe, led by the President of Cultural Centre of the Philippines (CCP), toured India in 2002.  Two 10-member theatre troupes from Davao in the Southern Philippines visited India in 2002 and 2003.

ii.       A 5-member Percussion Group sponsored by ICCR, visited Manila from 24 to 27 January 2006 and gave three performances including one in collaboration with the Cultural Centre of the Philippines in their ‘Experimental Theatre’ on 25 January 2006.

iii.      ICCR offered three scholarships to Filipinos for 2005: two for learning Indian classical dance and the third for doing a Ph.D course.  A Filipino Film Director was sent to study at the Pune Film Institute under ICCR’s Scholarship.

iv.      One student attended one-year Hindi language course at the Kendriya Hindi Sansthan, Agra in 2004.

v.       Dr. Evasco Pernia Marjorie, a renowned Filipina writer visited New Delhi from 14 to 17 February 2006 to attend the International Literary Conference – Continents of Creation: Legacy, Identity, Assertion”.  The visit was sponsored by ICCR.

vi.      An Exhibition of Books on Mahatma Gandhi was organized at the National Library, Manila from 16 to 31 August 2004.  Shyam Benegal’s film ‘Making of Mahatma’ was screened on the inaugural day.  Other films show during the Book Exhibition included: Mahatma: Life of Mohandas Karamchand Gandhi 1869-1948; Gandhi: Apostle of Peace and Nonviolence; and Richard Attenbrough’s Gandhi.  The Embassy gifted 535 Volumes (274 titles) of books about Mahatma Gandhi to the National Library, Manila.

vii.     A Coffee Table Book “The Philippine-Indian Encounter” partly sponsored by ICCR, was launched on 7 September 2005.

viii.    Two textile exhibitions were organized by the Embassy: (1) Indian Textile Exhibition at the National Museum – 27 October 2004 to 14 January 2005 and (2) Indian Textile Exhibition of Fashion Garments at the Metropolitan Museum – 27 October 2004 to 27 January 2005.

ix.      Mr. Sant Singh Virmani, a senior scientist at the International Rice Research Institute was conferred the Pravasi Bhartiya Samman at the PBD celebrations in Bombay on 9 January 2005 by the President of India.

x.       Mrs. Pratima Kale, President of the International Institute for Rural Reconstruction, Manila was awarded the Pravasi Bhartiya Samman at the PBD celebrations in Hyderabad on 9 January 2006.

xi.      Indian feature films have formed an impressive and essential part of the Indian cultural activities in the Philippines. Two Indian feature films – ‘Swaraj’ and ‘Mitr, My Friend’ were screened by the UP Film Institute in March 2005 in the International Women’s Film Festival.  The Embassy organised screening of two Indian feature films: “Devdas” and “Mangal Pandey – the Rising” which were well received by the invited audience. Cinemania screened two Indian films – Black, Bow Barracks Forever and Matrubhoomi:  A Nation without Women during the 7^th International Film Festival held in Manila from 12-25 October 2005.  On this occasion, ICCR sponsored the visit of Ms. Latika Padgaonkar, well known Indian columnist and film critic to Manila (13-22 October 2005) to participate in the Festival.  In the International Feminist Film Festival which took place from 23 to 29 November 2005, the Indian feature film “Manthan” – (about milk cooperatives in India) directed by Shyam Benegal was screened on 28 November 2005.  The other Indian film “Phir Milenge” (on AIDs) by renowned film actress and Director Ms. Rewaty was shown on 24 November 2005.  The Embassy also participated in the UP Film Institute’s 16^th Women Film Festival with the feature film “Sancharam – the Journey” by Mrs. Ligy Pullapally which was shown on 9 March 2006.

Ramon Magsaysay Award

          Ramon Magsaysay Award was established in April 1957 by the Rockefeller Brothers Fund in honour of Ramon Magsaysay, the late President of the Philippines.  The award is managed by Ramon Magsaysay Foundation and is given to distinguished individuals from Asia in six categories: (i) Government Service, (ii) Public Service, (iii) Community Leadership, (iv) Journalism, Literature and Creative Communication Arts, (v) Peace and International Understanding and (vi) Emergent Leadership.  So far, 43 distinguished Indian citizens have been honoured with this Award; the largest number from any single country.  Prominent recipients include: Vinoba Bhave, Baba Amte, C. D. Desmukh, T. N. Seshan, M. S. Swaminathan, J. M. Lyngdoh and Admiral Laxminarayan Ramdas and recently to Dr. (Mrs.) V. Shanta, Director, Adyar Cancer Institute, Chennai (Tamil Nadu).

Indian Community:

Indian Community in the Philippines is estimated to be around 50,000, mostly belonging to Punjabi and Sindhi community.  While the Sindhi community is primarily engaged in business, most of the Punjabi community are engaged in money-lending activities.  There is a small but very respectable community of Indian Christian Priests, nuns and religious scholars working in the Philippines. There are also professionals working in the multi-national companies, Asian Development Bank and the International Rice Research Institute.  There is small but growing Indian student community in the Philippines.  Indian students constitutes more than 45% of the students in Asian Institute of Management.  Other students are pursuing studies in the field of IT, Medicine, Nursing, Christian Theology and Divinity, Church Music, among others.

There are many Gurudwaras / temples in towns all over Philippines.  Sikh Gurudwara in Manila has been in existence for over 70 years, while the Hindu Temple has completed 21 years.

The Filipino-Indian Chamber of Commerce, which has about 250 members, has recently completed 51 years of its existence. The Chamber has helped in bringing the members of Indian community closer together.  It has offered free services and guidance to Indian students as well as visiting Indian businessmen.  It invites senior government officials to its general body meetings to speak on issues affecting business and foreign community.  It is affiliated to the Philippines Chamber of Commerce & Industry, the Employer Confederation of the Philippines as well as the Asia Pacific Indian Chambers of Commerce & Industry.

The New India Assurance Company has a full fledge branch office in Manila since 1956.  The State Bank of India has a Representative Office.  Air India and Jet Airways have general sales agents in Manila.

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April 2006