In the dynamic landscape of international relations, India and El Salvador have embarked on a journey of collaboration that spans political, diplomatic, economic, and cultural spheres. Despite the challenges posed by the global COVID-19 pandemic, both nations have intensified their engagement across various sectors, fostering a robust partnership.
While El Salvador’s market may not be the largest in the region, the exponential growth witnessed in bilateral trade underscores its significance. With India emerging as the 11th largest import partner for El Salvador in 2022, surpassing traditional players like Germany and Colombia, the trajectory of their relationship is on an upward trajectory. Notably, sectors such as textiles, automobiles, pharmaceuticals, and medical devices have emerged as key areas of cooperation, showcasing India’s pivotal role as a strategic partner for El Salvador’s economic development.
Against the backdrop of political stability under President Nayib Bukele’s leadership, El Salvador presents itself as an attractive destination for investment, offering incentives across various sectors including energy, textiles, tourism, and renewable energy. As the two nations explore avenues for collaboration in Information Technology, cybersecurity, renewable energy, and infrastructure development, the foundation is laid for a mutually beneficial partnership that transcends geographical boundaries. In this evolving landscape, India emerges not only as a reliable ally but also as a catalyst for driving innovation, economic growth, and sustainable development in El Salvador.
“We consider India as a reliable and strategic partner to undertake important business and trade projects of benefit to both nations,” Deputy Minister of Foreign Affairs, Adriana Mira tells Financial Express Online.
For the first time ever a top minister of the Bukele’s team, Deputy Minister of Foreign Affairs, Adriana Mira interacts with Indian media.
Following are excerpts from an interaction of Minister Adriana Mira with Huma Siddiqui:
What are the sectors that the government has identified for deepening cooperation with India?
In addition, renewable energy alternatives have been explored through the International Solar Alliance (ISA), which is based in India. We see ISA as a platform with a lot of experience in solar energy technologies to provide energy access, ensure energy security and drive the energy transition.
In this regard, we reiterate our interest in strengthening cooperation in this area with the aim of improving our national energy supply. We have also participated in virtual events where we have been approached by Indian trade associations with whom we are aiming to boost economic relations between our countries.
The Government of El Salvador is also interested in seeking financing for the execution of strategic infrastructure projects, such as the San Salvador Metropolitan Area metro line, the Pacific airport, the Pacific Train, among other initiatives, as well as road restoration.
What about areas such as education, information technology, agriculture, pharmaceuticals, health, and interpersonal relations?
The government is interested in benefiting from India’s experience in areas such as the development and technification of agriculture, as well as in the technology sector, where it is a leader in the production of electronic components and software development. Our country recognizes India as a pioneer in the field of pharmaceuticals and as one of the greatest examples to follow.
Your country recently hosted the Miss Universe pageant. What kind of security system has the government adopted and how can the two countries work together on defence and security matters?
El Salvador is now a leader in high-level international events. We have become the venue for many international events in recent years, thanks to the new climate of security, post-pandemic economic recovery and the tourist attraction for the beauty of our country. This path of transformations that our government has undertaken has been key for these world-class events to take place in the country.
For example, the Miss Universe pageant has had a positive impact on our country, as it has been a window of opportunity to show the world the beauty of our country, but also the results of the transformation process underway in favour of our people. It has also allowed us to position ourselves as an attractive and reliable destination for tourists, investors, and the general public.
The government has restructured the security system to host world events with high standards, thanks to the acquisition of cutting-edge equipment that contributes to the security plans promoted by the current administration. It would therefore be important to learn about projects that strengthen national defence and security systems through the exchange of best practices and technical cooperation.
Also, the development of international events has increased the number of foreign visitors, receiving more than 3.4 million tourists by the end of 2023, which contributed to local economic growth. This transformation is part of the new security context; previously, the panorama was so complex because the criminal phenomenon was serious and deeply entrenched in El Salvador’s reality.
This is how the Territorial Control Plan, and the Emergency Regime were implemented, which have been key to ensuring that Salvadoran society enjoys peace and tranquillity. The Territorial Control Plan was launched on 20 June 2019 with a series of phases: Territorial Control, Opportunities, Modernization, Incursion and Extraction.
In almost 5 years of President Nayib Bukele’s administration, homicides have been reduced in 70% of the national territory through the Territorial Control Plan.
What incentives does the government offer to foreign investors to set up manufacturing bases or even to make films?
El Salvador has identified priority sectors for attracting investment, including innovation and technological manufacturing, which may be of interest to companies that manufacture high-end equipment used in the film industry.
The government through the Ministry of Culture, is also developing a series of initiatives in favour of film production and training. Thus, training and workshops on the seventh art are held for national filmmakers, such as the Film Project Development Workshop for Central America and the Caribbean, held in San Salvador from 22 to 29 October last year, during which time filmmakers from 12 countries gathered for this activity organized by the Ibermedia program and the Ministry of Culture, with the support of the Spanish cooperation agency, AECID.
El Salvador is part of the Ibermedia program, in which we are 22 member countries, including Latin American countries, Italy, Portugal and Spain, the investment processes are in film co-production, where countries invest in their productions generating joint contributions for the realization of a film. Countries from all over the world can participate, as long as they are working with a member country, the investment must be financial as well as technical and talent participation. The backing of the Ibermedia brand opens the door to financing possibilities in other sectors, as the films are supported by this prestigious program.
On the other hand, in addition to having the support of this cooperation partner, El Salvador is a small country and, geographically speaking, it has the competitive advantage of having various locations such as beaches, mountains, cities, among others, which are close by. This is an advantage in terms of production, given that it does not require much investment in mobility or logistics for film equipment.
Another important topic around film production or film investment is that our country has adopted bitcoin as legal tender, so El Salvador has this incentive for the film sector, especially for specialists in this field who come from other countries, including India.
We know that India is a world power in filmmaking, and we are interested in learning more about their experience and, of course, inviting filmmakers from this friendly nation to make their productions in our country.
India is focusing on defence exports: has there been any dialogue related to this sector?
At this stage, no defence or arms issues have been explored between El Salvador and India.