India is expanding its engagement with the LatAm region in various sectors especially in trade and investment, climate change, energy security, capacity building and more.
Speaking at an event in New Delhi ahead of his four nation’s tour in the region in April, External Affairs Minister Dr S Jaishankar presented a detailed account of India’s ongoing engagements with the Latin American and Caribbean countries (LAC). The event was an international conference on Latin America and Caribbean –“Connected Histories, Shared Present’ in New Delhi at India International Centre.
In his address he highlighted the volume of India’s annual trade with the LAC region which today stands at more than USD 50 billion and is growing more.
According to him India’s four big trade accounts are – the US, ASEAN, European Union and China and the trade stands at around US$ 100-110-115 bn. And the LAC region has already touched the half way mark and is expected to grow further. He also stated that India and some countries of the LAC region have similar views on key issues.
Development in the region
According to Jaishankar over the years India has carried out major development partnerships overseas and these were either in the immediate neighbourhood or in developing countries. As far as the LAC region is concerned India has around 40 Lines of Credit and has committed US$ 900 million in development projects. Adding that there is a natural convergence of interests between the two sides.
The minister also shared that he has contact details of almost everybody barring a few foreign ministers of the region on his WhatsApp and that during COVID pandemic he was in touch with the ministers of the region.
In his address the external affairs minister also emphasized how India has set a goal to become a leading power and it has to start developing at least the footprint of being global and that means reaching every region.
Trade with the region
He cited two examples — of Brazil where India is either the fourth or the fifth trading partner and this position depends on how the trade is done.
And in the case of Argentina India is the third or the fourth and there is a possibility of further growth.
While India’s demand for natural resources, for agro products is growing, the demand in the LAC region is mostly for middle class consumers which include two wheelers, automobiles, and pharmaceuticals.
India has made a lot of investments in the region in different areas in countries like Argentina and Brazil whether it is in power transmission, or mining. In Brazil one of the biggest companies in the mining sector is Indian.
The region as reported earlier has also become one of the most sources for edible oil – India which was earlier depending on Indonesia, Malaysia for Palm Oil and on Ukraine for Sunflower oil has started sourcing from the LAC region especially Argentina.
Energy Sector
Indian companies have invested in Venezuela, as well as in Brazil. And discussions are going on with important energy producers in the region.