A promising time for India, Latin America trade

By:

Mr R Vishwanathan, Veteran Diplomat

Speaking on the occasion R Vishwanathan, Veteran Diplomat said, "India's exports to some Latin American countries were more than the exports to neighbouring countries and traditional trade partners. India exported more to the distant Costa Rica than to the neighbouring Cambodia: more to Mexico than to Thailand, Canada or Russia which is self-evident of the importance of the Latin American market for India."

The Confederation of Indian Industries organized an interactive session with the industry leaders, journalists, and academia on Thursday with an aim to promote India's trading ties with Latin America and the Caribbean overcoming the distance barrier.

Speaking on the occasion R Vishwanathan, Veteran Diplomat said, " India’s exports to some Latin American countries were more than the exports to neighbouring countries and traditional trade partners. India exported more to the distant Costa Rica than to the neighbouring Cambodia: more to Mexico than to Thailand, Canada or Russia which is self-evident of the importance of the Latin American market for India. "

India's trade with Latin America grew by 24% in 2017 to 35 billion dollars, after the decline in 2015 and 2016. The exports have increased by 15% to 11.6 billion dollars and imports by 28 % to 23.4 bn dollars in 2017 from the previous year. The trade is poised to grow in the coming years in view of the increase in the economic growth forecast for the region and the higher global prices of commodities. Few of the items which dominate the Latin American export to India include Vegetable Oil and Crude Oil, while Indian exports include Vehicles and Machinery and Equipment.

There are many advantages of trading with the Latin American countries which include middle-income population, location advantage as it is close to developed economies like the USA and having the abundant natural resources," said Deepak Bhojwani, Former ambassador to Latin American countries.

Despite a very promising destination for Indian exports, the absence of indigenous banks in Latin America is the biggest obstacle to increasing trade relations.

"The absence of Indian banks in Latin America is a huge problem which is not present even at the multilateral level," said Bhojwani.

The discussion was organized under the theme, India’s Strategic and Economic Agenda for the Latin American and Caribbean Region (LAC).”

Participants from the Latin American countries were also present during the event who shared about their experience of working in India. Terming their Indian experience as very exciting they called upon the two cultures to break the traditional stereotype perception of each other, popularize the Latin American language courses in India and encourage the Indian professionals to take jobs in Latin America and vice versa as a way to end the unfamiliarity to promote the trading ties.

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Diplomatist Magazine was launched in October of 1996 as the signature magazine of L.B. Associates (Pvt) Ltd, a contract publishing house based in Noida, a satellite town of New Delhi, India, the National Capital.

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