India, Philippines ink defense deal amid South China Sea tensions
India's SMPP Limited and the Philippines's Asia Defence and Firepower Corporation (ADFC) just signed a deal during President Marcos Jr's August 2025 visit to India.
They're setting up a joint venture in the Philippines to make, assemble, and distribute advanced defense gear—part of a bigger push for the Philippines to build more of its own military equipment.
What's in it for both countries?
This partnership means Filipino workers will help run things locally, while SMPP brings in tech know-how.
With Filipino majority ownership, the project gets local perks like tax breaks and easier access to government contracts.
For the Philippines, it's a step toward relying less on imports—especially important with tensions rising in the South China Sea.
For India, it's about sharing Made-in-India expertise and growing its influence in Southeast Asia.
This move also tightens strategic ties between both countries at a time when regional security really matters.