NEWS

By Louella Desiderio

REUTERS/Cathal McNaughton

Six Indian firms have expressed interest to explore opportunities to collaborate in the infrastructure sector in the Philippines.

During the Business Conference on India Philippines-Infrastructure Cooperation organized by the Philippine Chamber of Commerce and Industry and the Confederation of Indian Industry, Indian firms GMR Group, Larsen and Toubro, IRCON International Ltd., Shapoorji Pallonji, Adani Group and RITES Ltd. presented their experience and conveyed interest to work with local firms.

The firms are interested to tap opportunities in shipbuilding, railways, highways, airports, ports and metros.

In the same event, Trade Secretary Ramon Lopez invited Indian firms to look into possible partnerships with local construction companies for the development of infrastructure and construction projects.

He said construction and related engineering services were among the country’s top exports in the 1970s and as a result, local companies have been engaged and continue to build famous landmarks and structures worldwide.

While the construction industry has been heavily affected by the pandemic, the DTI is pushing for the sector as it is seen to significantly help the economy recover.

“Our National Economic and Development Authority estimates the contribution of the construction industry to our country’s GDP (gross domestic product) to reach as much as $1.3 trillion by 2022. This shows that our construction industry still remains one of the best drivers for our country’s economic recovery and employment-generation with multiplier effect on jobs through business transformation and internationalization,” Lopez said.

He said there are opportunities in the construction industry in the country as restrictions are being eased on foreign participation.

In addition, he said the Philippine government continues to pursue reforms including the proposed Corporate Recovery and Tax Incentives for Enterprises (CREATE) which is expected to benefit businesses.

He said CREATE would encourage more investments as it would lower the corporate income tax rate and modernize the incentives system.

As India did not pursue its membership in the Regional Comprehensive Economic Partnership, Lopez said Indian businesses could benefit from the mega free trade deal through the Philippines.

Under the Philippine construction industry roadmap 2020 to 2030, the aim is to have a globally competitive industry and increase jobs generated in the sector to seven million from four million.

“As the Philippines and India continues to build stronger trade and investment ties, we hope that you will partner with us in pushing the Philippines’ economic recovery in the post-COVID future,” he said.

Source: The Philippine Star