By IANS
New Delhi : With the Philippines aggressively wooing Indian companies, major Indian investors have lined up to explore possibilities and invest in the Southeast Asian nation, which has been witnessing steady economic growth for several years.
At the top of the queue is Pramod Mittal-promoted Ispat group, which has announced plans to set up an integrated steel plant worth $1.6 billion in southern Philippines.
This was officially announced by the Philippines president, Gloria Macapagal-Arroyo, at a business meet Friday afternoon as she welcomed the Indian steel group to the “billion dollar club”. Arroyo was referring to the select group of multinationals who have made investments of over billion dollars in the archipelago nation.
Earlier in 2004, the Ispat group had acquired Global Steel Holdings limited, which is the operator of Philippines’ largest steel plant in Iligan in south Philippines.
On her first ever visit to India, Arroyo was fulsome in her praise for India’s “impressive growth fuelled by knowledge economy”.
In both her interactions in Mumbai Thursday and in the capital Friday, her focus seemed set on the pharmaceutical industry, especially with the Philippines senate recently passing a bill to making medicines cheaper.
“Our massive healthcare spending includes a significant portion for import of pharma from India,” she told the business leaders at the function, jointly organised by three chambers of commerce.
In fact, the Philippines International Trading Corporation Friday signed an agreement with India’s State Trading Corporation to buy $35 million worth of medicines.
Arroyo’s aggressive wooing of the Indian pharmaceutical industry seems to be the most prominent trait of her visit’s business component.
But, there are still some hindrances to Indian drug companies setting up shop in Philippines. “While it should take only one year to get registered, in actual fact, it can stretch from 16 to 18 months,” said Subodh Bhargava, former president, Confederation of Indian Industry.
Bhargava said the Indian pharma industry, which has already passed the strict standards of the food and drug administrations of Europe and United States, should receive fast-track treatment in the Philippines towards approval.
This suggestion was received favourably by the Filipino leader, who said she was keen that Indian pharmaceutical companies should set up their hub for Far East and Southeast Asia in the Philippines.
Another area of potential cooperation was dairy and livestock. “We import 99 percent of our milk requirements, while the Indian milk industry is the biggest producer in the world. So, there is a possibility of a good symbiotic relationship,” Arroyo said.
The Filipino president announced that the Indian ministry of animal husbandry had approved the procurement of genetic material to strengthen livestock in her country.
The two countries signed a memorandum of understanding on renewable energy Friday. “We would also like to explore a joint venture in the field of development of bio-fuels from sweet sorghum and jatropha,” said Arroyo.
In the conventional energy sector, Kalpataru power of India said it would take part in the bid for privatisation of Philippines national transmission grid.
Informed about the need for investment in Indian infrastructure, Arroyo pointed out that there were several Filipino construction companies that had undertaken projects around the world.
“Next time in our business mission, we will certainly get some construction companies,” she said.