India–Philippines Defence Alliance Forms Through New Joint Venture
A new chapter in bilateral defence cooperation opened in August when Indian defence manufacturer SMPP Limited and the Philippines’ Asia Defence and Firepower Corporation (ADFC) signed a memorandum of understanding to establish a joint venture corporation (JVC) in the Philippines. The agreement was concluded during President Ferdinand R. Marcos Jr’s first state visit to India in August, coinciding with the 75th anniversary of diplomatic relations between the two nations.
The JVC will be headquartered in the Philippines and will focus on manufacturing, assembling and distributing a range of defence products developed by SMPP. The initiative directly supports Manila’s Self-Reliant Defence Posture (SRDP) programme, which aims to build a sustainable, local defence manufacturing base. Under the arrangement, SMPP will provide its established “Made-in-India” technologies, along with quality assurance systems, while ADFC will manage local operations, workforce recruitment and skill development. The long-term goal is to create a locally led ecosystem capable of research, innovation and full-scale production.
Shared Expertise and Local Empowerment
SMPP, a trusted Indian producer of advanced defence equipment, has over three decades of experience supplying protection systems for the military, police and security agencies. Its product range includes bulletproof jackets, ballistic helmets, armour kits for vehicles and aircraft, and ammunition components. The company is also among the few in the world to manufacture Boron Carbide for ballistic protection and combustible cartridge cases for heavy weapon systems, technologies critical to modern defence operations.
The partnership with ADFC brings this expertise to Southeast Asia. ADFC, which acts as a defence integrator and technology partner for the Philippine government, has been actively working to localise production capabilities. Its collaboration with SMPP is seen as a practical step toward reducing reliance on imports and strengthening the Philippines’ capacity to meet its own defence needs.
Ashish Kansal, CEO of SMPP, described the agreement as “the best of Indian defence innovation meeting the needs of a friendly partner nation.” He emphasised that sharing SMPP’s proven technologies will not only strengthen the Philippines’ self-reliance but also lay the groundwork for a resilient regional defence supply chain.
Legal Structure and Economic Benefits
The joint venture will be majority-owned (at least 60 percent) by Filipino stakeholders, in line with national regulations. This structure ensures that the company qualifies as a domestic defence manufacturer, granting access to incentives under the Philippines’ Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. These benefits include multi-year tax holidays, duty-free import of capital equipment and fast-tracked government approvals.
By operating under a local corporate structure, the JVC may also benefit from provisions allowing the Department of National Defence to award contracts directly, without public bidding, for urgent or strategic procurements. This streamlined process is expected to boost responsiveness and encourage private investment in defence innovation.
The announcement comes amid growing regional security concerns, particularly in the South China Sea. During President Marcos’s visit, India and the Philippines reaffirmed their strategic partnership, highlighting defence cooperation as a key pillar. The Philippines’ earlier purchase of three shore-based BrahMos supersonic cruise missile batteries from India, valued at around €350 million, was the first such export of the system. Deliveries began in 2024 and will continue through 2025, further underlining the countries’ expanding defence ties.
Innovation and Long-term Strategy
SMPP’s philosophy is built around four pillars: ethics, innovation, research and people, which have guided its steady growth into a globally recognised defence supplier. The company holds multiple patents and design registrations through its in-house R&D division and has been awarded three National Awards by India’s Ministry of Defence for its quality and dedication.
For the Philippines, the joint venture represents more than an industrial partnership. It signals a transition toward local capability, creating jobs, fostering knowledge transfer and aligning with the government’s ambition to build a domestic defence industry that can both serve national needs and participate in regional supply chains.
India, meanwhile, continues to pursue its goal of expanding its defence manufacturing footprint across Asia. The partnership with ADFC demonstrates how Indian firms can export not only equipment but also production expertise, helping partner nations build their own strategic resilience.
As both countries deepen their cooperation, the SMPP–ADFC venture stands as an example of defence diplomacy transforming into industrial collaboration, a model that could be replicated across the region in the years ahead.
SMPP will showcase its latest defence technologies and ballistic protection solutions at Milipol Paris, taking place from 18 to 21 November 2025.