Department of Finance (DOF) secretary Ralph G. Recto urged Indian companies to explore investment opportunities in the Philippine technology and services sectors during the Philippine-India Business Forum last Aug. 7.
Speaking before about 160 Indian investors from industries including IT-BPM, manufacturing, infrastructure, and healthcare, Recto outlined the Philippine position as a major hub for information technology, financial technology, artificial intelligence, blockchain, and business process outsourcing in Southeast Asia.
He noted that the Philippines accounts for 16% to 18% of the global IT-BPM workforce, providing services across customer experience, healthcare, finance, human resources, IT development, and infrastructure.
Recto cited the country’s high rate of AI adoption, with 86% of knowledge workers using AI tools, and emphasized the availability of a young, English-speaking workforce with skills in technology, science, and finance.
To encourage expansion, he presented investment incentives under the Create More Act, including income tax holidays, additional deductions on power costs, reinvestment allowances, and VAT exemptions for export-oriented firms.
He also promoted opportunities in Public-Private Partnership projects in digital and physical infrastructure, renewable energy, and transportation. These include upcoming airport projects and the planned Philippine Spaceport, envisioned as a launch site for the space industry.
Other measures highlighted include recent tax reforms through the Capital Market Efficiency Promotion Act, which lowered the stock transaction tax, and tourism incentives such as VAT refunds for foreign visitors and visa-free entry for Indian nationals.
Recto’s presentation took place alongside President Ferdinand R. Marcos Jr.’s state visit to India from August 4 to 8, aimed at strengthening bilateral trade, investment, and technology collaboration.
