Bridging the Gap: India-Latin America Trade Partners

Bridging the Gap: India–Latin America Trade Partners

• India’s bilateral trade with Latin America reached US$43.22 billion in 2023, demonstrating potential for growth but still lagging behind China’s US$487.2 billion trade with the region.
• India aims to achieve $100 billion bilateral trade in the next five years, requiring strategic efforts in diplomacy, infrastructure, trade agreements, and export promotion.

Trade Highlights (2023)

• India’s exports to Latin America: US$20.09 billion
  • Top commodities: petroleum oils & oils derived from bituminous minerals (HSN 2710) – US$2,127.23 million, motor vehicles (HSN 8703) – US$1,916.97 million, pesticides & plant growth regulators (HSN 3808) – US$1,374.48 million.
• India’s imports from Latin America: US$22.93 billion
  • Top commodities: petroleum oils & oils obtained from bituminous minerals (HSN 2709) – US$5,875.62 million, gold (HSN 7108) – US$5,776.54 million, soybean oil (HSN 1507) – US$3,536.67 million.

Key Trading Partners in Latin America (2023)

1. Brazil: Exports US$6,670 million | Imports US$6,125 million
2. Mexico: Exports US$5,283 million | Imports US$3,034 million
3. Colombia: Exports US$1,198 million | Imports US$2,878 million
4. Chile: Exports US$1,169 million | Imports US$1,376 million
5. Argentina: Exports US$996 million | Imports US$2,662 million
6. Peru: Exports US$916 million | Imports US$2,766 million
7. Others: Guatemala, Ecuador, Uruguay, Dominican Republic

Strategic Measures

• Reactivation of Focus:LAC Programme: Initiated in 1997 to strengthen trade links with Latin America, with emphasis on:
  1. Institutional mechanism
  2. Improved market access
  3. Economic infrastructure facilities
• Policy and Infrastructure Support: Essential for export promotion, investment facilitation, and competitiveness in the region.
• Goal: Diversify India’s trade, enhance diplomatic ties, and close the gap with China’s dominance in the region.

Significance

• Strengthening India–Latin America trade contributes to economic diversification, job creation, and foreign exchange earnings.
• Facilitates collaborative ventures, cultural exchange, and technological partnerships, supporting India’s broader foreign trade and diplomatic objectives.
  
  
  
  

Updated - December 27, 2024 3:11 PM