Filipino exporters, particularly those of food, are encouraged to increase trade with India and unlock export potential in the huge market estimated at US$566.92 million.
Dr. Jhino Ilano, Assistant Director of the Department of Trade and Industry-Export Marketing Bureau (DTI-EMB), said India is a “very promising” market given its population which can be considered a good consumer base.
“(And) if you look at the value of imports versus exports, they are both at 4 percent so there is an opportunity for us to really make our exports higher than what we are importing from it,” he said during the info session organized by the DTI-EMB.
Ilano said machinery and electronic equipment are already equivalent to $436.96 million out of the total unrealized export potential in India.
He said other products which the Philippines can export to India include processed food with unrealized export potential of $3.94 million, personal care and beauty products, horticulture, services and franchising.
“A simple logic would tell you that even if this is mostly on the electronics industry, this will have a ripple effect on the food manufacturers… If, for example, Toshiba decides to invest in the Philippines, it will locate here, obviously, many will have jobs. If people have jobs, they will need something to replenish all the energy that they have lost and they will get it from food that many of you are actually producing,” he told exporters.
Ilano said the Philippines is a good country that sells pineapple and other jams which are processed foods –a mixture of fruits or edible plants.
“Simply saying that if you want to sell products to India, the best thing to sell to them would be food. Because the major observation is this: people in India are not actually fond of cooking food for themselves because they are very busy trying to get two to three jobs to maintain a lifestyle. So that’s the reason why in India, there are a lot of vendors that are actually selling food,” he added.
Ilano also urged local firms to unlock the $1.40 million export potential for personal care and beauty products in India.
“Indian consumers actually believe that coconut oil has a more moisturizing effect than a usual lotion. So this would tell you that coconut is a very good product that can be sold in the Indian market and coconut is considered to be a tree of life here in the Philippines because nothing is wasted in our coconut products. Now, another important aspect is that in terms of Indian color cosmetics, the market is expected to grow strongly than other beauty products in the country. So coloring in terms of the hair, for the skin, they are very fond of it…,” he said.
For horticulture with total unrealized export potential at US$1.12 million, Ilano said export products include desiccated coconut, seaweeds and algae, cashew nuts and mangoes that are either fresh or dried.
“Let’s get back to agriculture. We have lots of products that would have great potential but sometimes our farming is just focused primarily on specific products so we really need to look at what products can actually sell,” he said.
Ilano said the country can also export its services such as education and training and creative services, adding that India’s famous Bollywood can be a good opportunity for the local companies to engage in.
He said the franchising sector is another sector that presents business opportunities.
“Obviously, the food manufacturers would be part of the franchising that can be promoted in India. According to the Philippine Franchise Association which is a self-regulating governing body of franchising for the Philippines, the Indian franchise business is expected to touch (US$) 140 (billion) to 150 billion in the next five years so this is a good opportunity for food manufacturers to venture in,” he added.