In the age of interconnected global economies, the bilateral relationship between India and Argentina serves as a testament to the potency of collaboration. From trade and energy partnerships to defense and cultural exchanges, the links between these two nations have steadily evolved into a strategic alliance that is set to make a lasting imprint on the international stage. At the forthcoming BRICS Summit in South Africa, the expansion of the bloc is on the agenda, with Argentina’s membership anticipated to gain approval.
Flourishing Bilateral Trade
India’s stature as Argentina’s fourth-largest trading partner highlights the robust economic bonds shared between these two countries. The volume of bilateral trade surged to USD 6.4 billion in 2022, setting the stage for even more profound cooperation.
In an exclusive conversation with Financial Express Online in New Delhi, Ambassador Hugo Javier Gobbi of the Argentine Republic to India affirmed, “This will further deepen and expand connections with the emerging global economies, as three of the five BRICS members – India, Brazil, and China – are key partners.”
Expansion of the BRICS Consortium
Argentina’s imminent inclusion in the BRICS group signifies a significant stride in its global engagement strategy. Ahead of the BRICS Summit, according to Ambassador Gobbi, with major partners like India, Brazil, and China within the bloc’s fold, Argentina aims to align itself with emerging economies and capitalize on opportunities spanning communication, economy, politics, science, and technology. The country’s diverse resources and strategic partnership with India position it as a valuable asset to the BRICS discourse.
Economic Dynamics
“India ranks as Argentina’s fourth largest trading partner, with bilateral trade reaching an all-time high of USD 6.4 billion in 2022, and the potential to reach USD 25 billion in the next decade,” observed Ambassador Hugo Javier Gobbi.
The exchange of goods between India and Argentina encompasses a diverse array of commodities. India exports petroleum oils, agrochemicals, yarn-fabric-made ups, organic chemicals, bulk drugs, and two-wheelers to Argentina. Conversely, Argentina exports vegetable oils, finished leather, cereals, residual chemicals, allied products, and pulses to India. This mutually beneficial trade arrangement forms a robust foundation for their economic collaboration.
Key Pacts and Collaborative Ventures
The spirit of collaboration is further exemplified through strategic pacts signed between the two nations. Particularly, the Oil and Energy sector has witnessed cooperation through agreements between OVL Ltd and YPF (the Argentine Oil and Energy public sector company). Additionally, groundbreaking agreements have been forged in the defense sector, where Hindustan Aeronautics Limited and the Argentine Air Force have established commercial connections for helicopter spares and engine maintenance. Such partnerships underscore the commitment to expanding cooperation in pivotal sectors.
Shared Ground in Global Arenas
India and Argentina share common perspectives on international matters, amplifying the significance of their partnership on the world stage. Their collaborative efforts in South-South cooperation, alignment in international forums, and harmonized viewpoints underscore the resilience of their alliance. These countries not only collaborate in areas like agriculture, trade, investment, science, and technology but also venture into novel domains such as civil nuclear energy, infrastructure, space, and oil and gas.
Strategic Partnership and Prospects Ahead
The elevation of bilateral relations to a strategic partnership since 2019 has paved the way for exploring novel avenues of collaboration. Crucially, identified areas for mutual engagement encompass pharmaceuticals, renewable energy sources, nuclear medicine, and defense cooperation. Furthermore, the potential of soft power surfaces as a promising channel, with Indian practices like yoga, alternative healing, and dance resonating with the Argentine audience.
Oil and Gas: Collaborative Vistas
The energy sector emerges as a pivotal point of convergence, marked by significant strides in gas exports. A new pipeline linking Argentina and Brazil facilitates gas exports worth approximately USD 10 billion. This collaboration not only augments Argentina’s gas exports but also offers Indian enterprises investment opportunities within the sector. The collaboration between ONGC and YPF exemplifies the momentum driving this strategic domain.
As Ambassador Gobbi put it, “We have recently completed a pipeline that extends to Buenos Aires and connects to Brazil. This implies that we will be exporting gas to Brazil worth around US$ 10 billion.” The vision extends to eventually exporting to other countries in the region, including Bolivia and Chile.
The pipeline, known as Gasoducto Presidente Néstor Kirchner, is designed to transport liquefied natural gas (LNG) from the extensive Patagonian non-conventional gas and oil reservoirs of Vaca Muerta to Buenos Aires Province. Its initial segment spans 573 kilometers.
Argentina’s substantial oil and gas exports and India’s role as a primary diesel exporter to Argentina foster a complementary dynamic that is poised for further growth.
Ensuring Food Security and Boosting Manufacturing
Argentina’s exports of soy and sunflower play a pivotal role in India’s food security. Collaborations in the agricultural sector, including advancements in sunflower seed technology by UPL, underscore the symbiotic essence of their partnership.
In 2020, a new assembly line for Royal Enfield motorcycles was inaugurated by Argentine President Alberto Fernandez at the production facility of the SIMPA Group in Buenos Aires Province. This marked the first instance in Royal Enfield’s 119-year history where their bikes were manufactured outside their own plants.
Defence & Security
According to Ambassador Gobbi a groundbreaking agreement in the defense sector was signed in February 2023 for the supply of helicopter spares and engine maintenance between HAL and the Argentine Air Force. A cooperation agreement between HAL and FAdeA (the Argentine Public Sector Company in Aeronautics) was also inked in June 2023.
For the very first time, Argentina’s Defense Minister Jorge Taiana visited India and, accompanied by his senior officers, toured the BrahMos facility. The visit left a deep impression, with Ambassador Gobbi sharing, “We were thoroughly impressed with what we witnessed. We are in discussions with BrahMos Aerospace Pvt Ltd.”
This capacity-building drive also marked the first time that 30 NDA officials visited Argentina. They have also visited Brazil as part of this initiative.
Argentina’s Chief of Staff of the Air Force visited India twice for the first time, engaging in meetings with the authorities of Hindustan Aeronautics Limited. Financial Express Online has reported earlier that Argentina is interested in buying helicopters from India and has also expressed interest in fighter jets.
Nuclear Synergy and Beyond
The collaboration between India and Argentina in the nuclear domain is gaining momentum, with discussions encompassing the procurement of Heavy Water and the inauguration of the Isotope plant in Mumbai. South-South Cooperation in nuclear technology augments their partnership. Additionally, engagements in science and technology, including space endeavors, signify a shared vision for exploration and innovation.
Advances in Science & Technology
Rapid strides are being made in this realm. The Indian space agency, ISRO, and its Argentine counterpart, CONAE, are engaged in discussions to explore potential opportunities for expanding space cooperation between the two nations. The Argentine agency is actively developing its orbital-class rockets and has undertaken several satellite missions in collaboration with other space agencies.
Representatives of the Indian Armed Forces participated in the Antarctic Programme for the first time, marking a notable milestone.
Trading in Local Currencies
Efforts are underway to initiate discussions between the Central Bank of Argentina and the Reserve Bank of India regarding the use of local currencies for trading. Upon approval, this move is expected to bolster trade between the two countries.
India & MERCOSUR Trade Agreement
Both parties are actively discussing the expansion of the existing trade agreement, and these discussions are expected to resume soon. This move holds the potential to further strengthen trade ties between India and the MERCOSUR bloc.
Education and Skill Development
Education and skill development also form a pivotal aspect of their partnership. Scholarships, training programs, and educational exchanges contribute to the growth of human capital in both countries. These initiatives empower individuals with knowledge and skills that transcend borders, thereby contributing to the progress of both nations.
According to the Argentine envoy, there are opportunities for Indian students for higher studies in medicine, science and technology, business management, engineering.
Collaborations between educational institutions in India and Argentina are broadening horizons and encouraging cross-disciplinary learning. The exchange of best practices in pedagogy, curriculum development, and research methodologies is expected to contribute to the quality of education in both nations, resulting in graduates who are equipped to tackle complex global challenges.
Do they need to know Spanish?
“The students will get a chance to learn the Spanish language when they join for the course of their choice,” he added.
Climate Change and Sustainability
In the face of global challenges like climate change, India and Argentina are exploring avenues for cooperation in sustainable development and environmental conservation. Collaborative efforts to mitigate climate change, promote renewable energy, and preserve biodiversity reflect their shared commitment to a better future for the planet.