BrahMos technicians working on NG variant of the cruise missile at the new Lucknow plant

India's defence sector is extending a significant olive branch to the Philippines, proposing the establishment of local production facilities as Manila accelerates its military modernisation program. 

This initiative aims to align with the Philippines' ambition to build self-reliant defence capabilities amid escalating tensions in the South China Sea.

Ashish Kansal, co-chairman of the Federation of Indian Chambers of Commerce and Industry’s (FICCI) defence committee, articulated this offer during a defence expo in Makati City. He emphasised that Indian manufacturers are prepared to supply the same advanced systems deployed by India's own armed forces and to create production bases within the Philippines.

“We are more than willing to set up actual production bases within the Philippines, so it has the right surge capacity to produce products for its own demand,” Kansal stated. He assured attendees that India would provide “not just the second best, but the best we give our armed forces,” underscoring a commitment to high-quality transfers.

This proposal arrives at a pivotal moment for the Philippines, which has allocated approximately $35 billion (P2 trillion) over the next decade for acquiring warships, missiles, and other platforms. Primary suppliers have included South Korea, Israel, and the United States, driven by the need to enhance deterrence against China's assertive actions in disputed waters.

Philippine Major General Ivan DR. Papera, chief of the military’s modernisation office, reinforced the strategic imperative of industrial partnerships. “Modernization, however, cannot stop at acquisition,” he declared at the event, organised by the Indian Embassy in Manila. “Modernization must be sustained, and sustainment requires industrial partnership.”

Reading from a statement by military chief General Romeo S. Brawner Jr., Papera warned that “modernization without industrial capacity creates dependency.” This perspective highlights Manila's determination to foster domestic production and reduce reliance on foreign imports.

The Philippines' strategy is bolstered by a 2024 law that incentivises foreign suppliers to collaborate with local firms, promoting self-reliance through partnerships with reliable allies. Papera explicitly hailed India as a “natural and strategic partner,” praising its expertise in missile development, shipbuilding, aerospace, cyber systems, and defence electronics.

A tangible example of this burgeoning ties is the Philippines' procurement of BrahMos supersonic cruise missiles from India. In 2022, Manila placed three orders totalling $375 million to bolster its anti-ship capabilities, particularly in response to repeated skirmishes with Chinese vessels in contested areas.

These incidents underscore the volatile security environment. Despite a 2016 arbitral ruling under the United Nations Convention on the Law of the Sea that invalidated Beijing's expansive claims, China maintains sovereignty over much of the energy-rich South China Sea. Manila has repeatedly accused Chinese ships of deploying water cannons and engaging in hazardous manoeuvres to harass Philippine resupply missions.

India's offer represents a strategic diversification for the Philippines, complementing its existing suppliers while leveraging New Delhi's proven track record in indigenous defence manufacturing. Indian firms, through initiatives like 'Make in India', have honed capabilities in co-production, technology transfer, and rapid scaling—skills directly applicable to Philippine needs.

The BrahMos deal exemplifies successful Indo-Philippine collaboration. Jointly developed by India's DRDO and Russia's NPO Mashinostroyeniya, the missile's coastal variant enhances Manila's littoral defence posture. Deliveries are progressing, with integration into Philippine Navy assets expected to yield operational readiness soon.

Broader geopolitical dynamics further incentivise this partnership. Both nations share concerns over Chinese expansionism—India in the Indian Ocean and Ladakh, the Philippines in the West Philippine Sea. Aligning defence industries could foster deeper quadrilateral cooperation, potentially involving the US, Japan, and Australia.

For Indian industry, the Philippines presents a lucrative market in Southeast Asia. FICCI's involvement signals coordinated efforts by public and private players, including heavyweights like BrahMos Aerospace, Tata Advanced Systems, and Larsen & Toubro, to penetrate emerging defence markets.

Challenges remain, including aligning regulatory frameworks, securing intellectual property protections, and overcoming logistical hurdles in setting up overseas lines. Yet, the mutual emphasis on self-reliance—echoing India's Atmanirbhar Bharat and the Philippines' modernisation law—provides a strong foundation.

Papera's endorsement positions India ahead of competitors, capitalising on trust built through prior deals and shared strategic outlooks. As Manila seeks to indigenise sustainment, Indian production footprints could ensure long-term ammunition, spares, and upgrades without external dependencies.

This development also reflects India's rising stature as a defence exporter. From negligible shares a decade ago, India now ranks among the top 25 globally, with exports surging to over $2.5 billion in FY2024. Partnerships like this one amplify that trajectory.

In the context of South China Sea flashpoints—such as the Second Thomas Shoal standoffs—timely industrial ties could prove decisive. Enhanced Philippine capabilities, powered by Indian technology, would deter aggression and safeguard vital sea lanes.

Ultimately, this overture heralds a new chapter in Indo-Pacific defence cooperation, where production sharing transcends mere sales to forge resilient supply chains. Both nations stand to gain from a symbiotic relationship rooted in strategic necessity and mutual capability enhancement.

Agencies