- SMPP, ADFC to make Indian defence systems in Philippines.
- SMPP provides tech; ADFC manages local ops and training.
- Boosts Philippines’ SRDP and India-ASEAN defence ties.
India-based SMPP Limited - an established leader in defence equipment manufacturing - has entered into a significantly groundbreaking Memorandum of Understanding (MoU) with the Philippines-based Asia Defence and Firepower Corporation (ADFC) to create a joint venture company (JVC) in the Philippines. The MoU was signed in a ceremony that took place during the recent visit of President Ferdinand Marcos Jr. to India and reflects growing bilateral defence industrial collaboration.
Pursuant to the terms of the MoU, the joint venture will be located in the Philippines and will focus on constructing, assembling, and distributing locally Manufactured-in-India defence systems. This new company is an import reduction mechanism to assist the Philippines' Self-Reliant Defence Posture (SRDP) framework and increasing local production capabilities.
Also Read: FPI Urges Reforms to Drive Growth in Manufacturing Sector
SMPP would render enhanced defence manufacturing technologies, engineering expertise, and quality assurance processes that would ensure product quality meets the requirements of the world. The ADFC will manage local operations, hire and train people, and oversee all training programs to create a workforce capable of operating the indigenous manufacturing and R&D centres and becoming competent enough to lead them.
This relationship is expected to provide additional resilience for the Philippines' defence supply chain, create jobs, and transfer technology. It will further expand India's defence manufacturing footprint into the Southeast region, consistent with New Delhi's Act East strategy, as it also seeks to develop into a global defence exporter.
This development represents a continuation of a growing trend of India operationalising strategic industrial partnerships with another country and the defence, shipbuilding, aerospace, and heavy industry sectors are among the first with is also a growing space for Southeast Asian countries working directly with India. For India this represents a new area of export expansion and ability to strengthen security and develop economic partnerships with ASEAN members.