By Cristhian Salamanca Garcia
The landmark economic liberalization of 1991 marked the beginning of India’s journey as an emerging economy, aimed at promoting a more market-oriented economy and increasing the participation of private and foreign direct investment. More than 32 years later, India has ranked as the 5th economy of the world (2022) with a nominal GDP of USD 3.5 trillion. A milestone that has left many in awe, but to others, a motivation to strengthen their ties with India, this is also for India, an opportunity to find and strengthen their ties on other latitudes.
Dr. Subrahmanyam Jaishankar, Minister of External Affairs of India, is set to visit Colombia from 25th to 27th April 2023, as part of his ongoing efforts to strengthen the diplomatic and economic ties of India with Latin America and the Caribbean, more specifically with Guyana, Colombia, Dominican Republic, and Panamá. For Colombia this visit is of great importance, as it is the first time that an Indian Foreign Minister will visit the country.
The visit of Dr. Jaishankar will provide an opportunity to explore new areas of cooperation and investment. He will hold High-Level meetings on binational trade and commercial ties with Germán Umaña, Minister of Commerce, Industry and Tourism of Colombia. On health, pharmaceuticals, education, culture, partnership for development, space, science and technology, and multilateral issues of mutual interest, with Álvaro Leyva, Minister of Foreign Affairs of Colombia. A meeting with Roy Barreras, President of the Senate of Colombia, is expected to be held. At the same time, a business delegation from India, headed by CII will accompany the Minister on his visit.
Dr Jaishankar will lead the India-Colombia Business Forum, organized by CII, Colombia-India Chamber of Commerce, Procolombia and Bogota Chamber of Commerce, whose purpose is to strengthen the business and commercial ties of both nations, through the participation of key representatives of the Indian and Colombian business community.
As Executive Director of the Colombia-India Chamber of Commerce, I have been a witness to the undoubted dynamism and steady India-Colombia trade growth over the years and for over a decade, worked with many Indian export promotion councils from different sectors, who have seen huge potential in Colombia. We have supported the visit of Colombian companies to India, too.
All of this has contributed to a substantial growth in binational trading:In the fiscal year 2019-2020, two-way trade was USD $1.85 billion. In 2020-2021 it stood at USD $2.27 billion, and in 2021-2022 reached USD $4.3 billion. India’s imports from Colombia mainly consist of gold, mineral fuels, coal, precious stones headed by emeralds, aluminum, zinc, wood (teak), plastics. India’s major export items to Colombia include vehicles (motorcycles, etc.), engineering products, chemicals, cotton, pharmaceuticals, iron, and steel products. Although all sounds good, there are still sensitive sectors like apparel textiles imported from India into Colombia, and the energy security sought by India with Colombia.
The presence of Indian companies in Colombia has increased as well over the years. In our latest report, the Colombia-India Chamber of Commerce stated that more than 40 companies have established their presence and operations in the country, the majority being pharmaceuticals, followed by IT/BPO, then motorcycles, agrochemicals,energy, among others, with FDI that have exceeded USD 1 billion.
Key sectors that India and Colombia can partner in:
India’s growing population and income per capita will create a huge demand for high-quality products and Colombia is looking forward to setting foot in India with high value products such as coffee, cacao, palm oil and other quality products. This is possible thanks to Colombia’s soil which has special characteristics such as a constant climate, 12 hours of constant sunlight every day, and huge savannahs that preserves a dense soil, rich in clay and a massive network of wetlands, tributaries, and waterfalls. On this soil, Colombia can produce food that India needs, with Indian investment and machinery.
On the other hand, Colombia can be a hub for Indian products and manufacturing. This can be beneficial to a wide range of products from India to reach Colombia and Latin American markets, taking into consideration Colombia’s strategic geopolitical location, and the different FTA in the region.
Colombia is a technology hub that exports its IT services worldwide, USA being the largest consumer, followed by other countries like Ecuador, Mexico, and Spain. Colombia and the USA have full workday overlap, making real-time collaboration easier. Also, software development in Colombia has grown exponentially in the last 12 years, and Indian companies can benefit from it.
We hope that Dr. Jaishankar’s visit will also lead Colombia to visit India with a High-Level delegation soon and motivate many Colombian companies to explore the business opportunities that the country offers. India is more relevant today than ever before, and the country has a good ambience to make business. With India, relationships can be fruitful.
The author is an International Speaker and University Professor and Executive Director of the Colombia India Chamber of Commerce. Lives at the intersection of intercultural management, international trade, diplomacy, and being digital.
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