Over 65 years, strong economic and commercial ties have been built between South American nation Colombia and India. This is evidenced by the growth in bilateral trade, highlighting that Colombian non-mining exports have increased by 80 percent from 2022 to 2023.
There has been an increase in the trade of Auto parts (121%); Fresh flowers (81.5%); Chemicals (55.3%); Plastics and rubber (54.16%); Furniture and Wood (37.5%). This indicates that Colombian products find great opportunities in the process of transformation and industrialization that India is currently undergoing.
In an exclusive conversation with FinancialExpress.com, Victor Echeverri Jaramillo, Ambassador of Colombia to India, said: “Regarding trade agreements, commitments have been made in several areas, including health and pharmaceuticals, agriculture, mining exploration, education and skills development, science, technology, culture, and aerospace development. Thanks to these agreements, Colombia has become the third most important destination for Indian investment in Latin America, with more than 30 Indian companies present in sectors such as automobiles, agrochemicals, pharmaceuticals, BPO, software, telecommunications, consulting, mining, and hydrocarbons.”
Currently, according to Ambassador Jaramillo, “our Ministries of Commerce are considering an agreement to promote and facilitate investments, with the aim of further strengthening our economic ties and fostering mutual investment. Our bilateral trade has grown significantly, with a notable increase in the last decade, reaching 4 billion dollars in the fiscal year 2022-2023.”
Following are excerpts:
How do the new limitations and regulations affect coal exports? And how much oil is India importing?
In 2023, Colombia’s coal and oil exports to India were significant. India became one of the main export destinations for these Colombian products. In terms of oil, Colombia exported approximately 15.6 billion dollars in crude oil, with a 17 percent drop compared to the previous year. As for coal, global exports amounted to around 27 million tons, representing a slight decrease of 2.6 percent. While there is a decrease in bilateral trade, it is clear that there is a close relationship between the two countries, which are also making great efforts to meet international commitments that lead to industrial transformation towards clean and green economies.
Space: An MoU was signed with ISRO. Are there any updates on this?
We are pleased to cooperate with India due to their superiority in aerospace matters and their significant satellite and digital advancements with civil applications in disaster risk management, infrastructure, and agriculture. For this reason, we signed the MoU in 2021, and we will be holding the 3rd Joint Working Group Meeting in the coming weeks, in which the main authorities from Colombia’s Ministry of Science and Technology and ISRO will follow up and set new commitments under the MoU.
Food Security: How are both countries working together in the agro-industrial sector?
It is important to highlight the efforts of both countries to include food security as a fundamental element in their political relationship. Despite India being the most populous country in the world, facing enormous food demand, and Colombia being a country with great agricultural potential, both nations are vulnerable to climate change, which challenges the strategies established by each of them.
For example, in India, the Public Distribution System (PDS) and the School Feeding Program are fundamental pillars in the fight against malnutrition, but it remains a significant challenge in combating this scourge. Colombia has great potential to cultivate a wide range of products but faces barriers such as the lack of technological implementation in rural areas, the absence of infrastructure to connect these agricultural zones with major cities, and the presence of armed conflict in some regions with high agricultural potential.
Authorities like Plant Protection in India and ICA in Colombia, that deal with agriculture regulations, keep in permanent contact regarding a series of products that could contribute not only to the bilateral commerce, but also offer an opportunity to improve production processes in both countries.
All of this demonstrates that both countries could work together to combat inequality, improve access to food, and fight against the marginalization of rural areas.
Automotive Industry: Are companies from India setting up their base in your country?
It is important to highlight that several Indian companies have chosen Colombia as their hub to expand motorcycle manufacturing in the region. Companies like Hero Motors, Royal Enfield, and Bajaj are present in Colombia, producing high-quality, high-tech products that are well received in the local market and have great potential for export in the region, considering the free trade agreements that Colombia has signed in the region.
Despite a decline in car sales in 2023, according to some analysts the automotive market in Colombia is expected to grow in the coming years, driven by factors such as the declining of interest rates and inflation. In accordance with global trends regarding sustainable mobility, the sales of electric vehicles continue to grow in Colombia, as technology advances and production costs are reduced.
TCS has set up its new service center in Bogotá: Tell us more about it.
Tata Consultancy Services (TCS) has expanded its presence in Latin America by establishing a new service center in Bogotá, Colombia, which is seen as a sign of confidence in Colombia and its authorities, as it expands its services that were initially located in Medellín.
At this center, TCS offers advanced information technology services, including consulting, systems development and maintenance, BPO services, and the implementation of technology products. These efforts have been rewarded with the recent certification as a “Top Employer 2024” in Colombia, a recognition awarded due to its innovative talent management practices and its positive impact on the country’s IT sector. We highly appreciate the presence of TCS in Colombia which is of mutual benefit.
Pharmaceutical Sector: An agreement was reached to cooperate in the production of critical vaccines. Has the process begun?
Cooperation in the areas of health, science, and technology has been a special priority on our bilateral work agenda. Regarding vaccine production, we have made progress in establishing joint ventures between Indian pharmaceutical laboratories and Colombian pharmaceutical laboratories for the production of critical vaccines in our country.
Additionally, we are in the process of signing three cooperation agreements in the areas of biotechnology, medical research, and cooperation in the pharmaceutical field. These agreements aim to accelerate overall scientific development in biotechnology, promote R&D and investment flows in health and technology areas, encourage joint medical research, and advance regulatory and medical licensing issues.
Also in the Health Sector, the implementation of the MoU on Traditional Medicines has progressed with the visit of a delegation from India’s Ministry of AYUSH to Bogotá in October 2023, which advanced objectives in deepening relations and exchanging best practices. Additionally, both countries are now preparing an Ayurvedic Medicine Chair in some Colombian universities that are interested in this kind of traditional knowledge.
Information and Communication Technologies:
A new line of bilateral cooperation has been initiated with the signing of an MoU on Cooperation for Digital Transformation during the visit of Colombian Minister of Information Technologies and Communications, Mauricio Lizcano in February 2024. This cooperation aims to foster a closer relation with India and learn from its digital innovations on banking, trade, and government services.