Finance Secretary Ralph G. Recto has pitched the Philippines as the perfect partner for digital and services expansion in Asia to Indian investors, citing the country’s status as the fastest-growing digital economy in ASEAN and the world’s second-largest hub for services delivery.

“This makes the Philippines the natural hub for Indian companies in IT, fintech, blockchain, AI, and BPO looking to expand their operations in Southeast Asia,” he said in his speech at the Philippine-India Business Forum held on August 7, 2025 in Bengaluru, India.

The Forum brought together around 160 Indian investors from key sectors such as IT-BPM, manufacturing, infrastructure, and healthcare, among others.

In his speech, Secretary Recto spotlighted that the Philippines accounts for 16% to 18% of the global IT-BPM workforce, offering end-to-end services across customer experience, healthcare, finance and accounting, human resources, IT development, infrastructure, and other high-value, industry-specific digital solutions that Indian investors can rely on.

Currently, 22 Indian-registered enterprises operate under the Philippine Economic Zone Authority (PEZA), with 82% engaged in the BPO sector, including industry giants like Infosys BPM Limited and HCL Technologies Philippines, Inc.
“We are eager to grow this number even further as we shift to higher value-added BPO services. And we have the right talent to make this happen,” he stressed.

Secretary Recto emphasized the strength of Filipino talent to Indian investors, noting that the Philippines ranks among the world’s leaders in AI adoption—with 86% of knowledge workers integrating AI into their daily work, surpassing the global average of 75% and the regional average of 83%.

This, he emphasized, reflects the country’s readiness to power the future of intelligent, tech-driven services.

“This should come as no surprise. As Filipinos are one of the most sought-after workers in the world. We have a young, tech-savvy, and English-speaking population with a median age of just 25 years old. Our talent is abundant— whether it’s tech, science, finance, or service excellence,” he said.

“And in our people, you will not only find workers. You will meet innovators, partners, and dreamers,” the Finance Chief added.

To help Indian investors fast-track their entry into the Philippines, Secretary Recto outlined the country’s modern, transparent, and investor-friendly reforms under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.

These include a four to seven-year income tax holiday, depending on the type and location of the project. For large-scale, strategic projects with at least USD 860 million (PHP 50 billion) in capital or 10,000 direct local jobs created, tailored incentives may extend up to 40 years.

Other perks include the additional 100% deductions on power expenses and up to 50% reinvestment allowance for the manufacturing and tourism sectors.

Export-oriented enterprises also benefit from zero-rated VAT on local purchases and VAT exemptions on importations.

The Finance Chief likewise invited Indian investors to take part in Public-Private Partnership (PPP) projects, which range from physical and digital connectivity to renewable energy and transport systems.

He specifically encouraged India’s involvement in airport PPPs, citing the successful track record of Indian conglomerate GMR in the development and operation of both Mactan-Cebu International Airport and Clark International Airport.

Secretary Recto also announced the development of the country’s first-ever Philippine Spaceport, which is open to private sector participation.

“This bold initiative aims to position the Philippines as a strategic launch hub in the rapidly expanding global space economy,” he said.

Meanwhile, the Secretary promoted the newly enacted Capital Market Efficiency Promotion Act (CMEPA), which reduced the stock transaction tax from 0.6% to just 0.1%, making the Philippine capital markets leaner, more liquid, and more attractive for investors.

Apart from these, Philippine tourism has much to offer, as the country is now offering a value-added tax (VAT) refund for foreign tourists.

“And now that Air India is set to offer direct flights between Delhi and Manila this October, our people are bound to get closer. Even better, Indian tourists can now visit the Philippines visa-free—a move that not only boosts tourism, but deepens the cultural and economic ties between our countries,” Secretary Recto said.

The Finance Chief also thanked India for its support to the modernization of the Philippines’ defense infrastructure, and expressed the government’s commitment to deepening the partnership through joint manufacturing, technology transfer, and local production to help grow the Philippine defense industry and ensure long-term regional stability.

“As you can see, there are a lot of complementarities and opportunities for both our economies to dream bigger together.
For when Indian capital meets Filipino talent and grit, there are no limits to what we can create,” he said.

“Now I ask you: Let’s build something bigger than business. Co-create the future with us. Let us build a legacy of shared prosperity for generations of Filipinos and Indians,” Secretary Recto said in closing.

The Forum was held on the sidelines of President Ferdinand R. Marcos, Jr.’s state visit to India from August 4 to 8, 2025.