MANILA - India is hopeful that it could be part of the Philippines’ third phase of the Armed Forces’ modernization after the successful deal on the BrahMos cruise missile system.
This is according to Indian Ambassador to the Philippines Shambhu Kumaran during the Indian Embassy-led defense industry seminar held in Makati City last Friday, where at least 18 leading Indian companies presented possible defense exports, such as aircrafts, drones, helicopters and AI- based technologies to Filipino stakeholders and officials of the Department of National Defense.
“We obviously had a successful conclusion of contract on missile systems. We hope that this could be considered,” Kumaran said.
“We have naval systems, we have fighter aircraft, we have a broad range of capabilities on the Indian side— helicopters, attack helicopters, land systems, artillery systems— and some of those would match with the capabilities you are looking to acquire in the Horizon 3,” he added.
Horizon 3 was initially scheduled from 2023 to 2028 while Horizon 2 was from 2018 to 2022.
The defense industry seminar was also an opportunity for possible partnerships as the Philippines is focused on creating a self-reliant “defense posture”.
Kumaran emphasized that India is committed to “walk the talk” and help the Philippines enhance its capabilities.
“As two democracies, India and the Philippines have to work together to ensure that we create a regional and global environment that will allow us to address the fundamental requirements of our two nations— that is to create the enabling environment for our countries to grow,” he said.
“We are both peaceful nations. We do not crave other people's territory, other people's waters, but we will not see efforts that try to limit our access to our territory and our resources either. So we have to go beyond the talk,” he added.
“SOFT LOAN ON THE TABLE”
During the same event, Kumaran mentioned India’s offer to help the country fund its defense modernization through a “soft loan” for defense procurements as such activities could eventually extend to some sort of “joint industrial activity” in the future.
“Our offer is very much on the table. We have announced our intent to offer a soft loan for defense procurements and this could also cover activities that would eventually extend to some sort of joint industrial activity,” Kumaran said.
The line of credit being offered by India is a soft loan provided on concessional interest rates to developing countries based on the national priorities of the borrowing countries.
The broad terms of the Export-Import Bank of India (EXIM Bank) line credits are 1.75 percent, with a 20-year tenor and five-year moratorium.
