India is currently reorienting its diplomatic and economic focus towards the Latin America and Caribbean (LAC) region, previously unexplored by the South Asian giant. This shift is led by a new generation of Indian diplomats, entrepreneurs, and academicians whose interest in the LAC region is not fleeting but a part of a meticulously planned diplomatic endeavour.
This strategic realignment represents a broader blueprint envisioned by the Indian government, led by Prime Minister Narendra Modi and External Affairs Minister S. Jaishankar. Speaking to Financial Express Online anonymously, a diplomat mentioned, “Sending first-time, especially younger ambassadors, signals a fresh start. Their new energy, perspectives, and out-of-the-box thinking are crucial for navigating the diverse LAC region.”
This shift is markedly seen in the deployment of a young, dynamic group of diplomats to the LAC region, with many taking on ambassadorial roles for the first time. Noteworthy is the appointment of Dr Sumit Seth, a 2005 batch Indian Foreign Service (IFS) officer with a background in forensic medicine, now serving as the Ambassador of India to the Republic of Panama. This transition from medicine to diplomacy exemplifies a new influx of diverse expertise into the IFS.
Joining this fresh diplomatic cadre are individuals like Mayank Joshi, another 2003 batch IFS officer appointed as the next High Commissioner of India to Jamaica, and Dr Pradeep Singh Rajpurohit, a 2004 batch IFS officer now serving as the new High Commissioner of India to the Republic of Trinidad and Tobago. These appointments reflect the expanding scope of India’s diplomatic outreach.
The outreach further extends with Dr Amit S. Telang, a 2005 batch IFS officer appointed as the High Commissioner of India to the Cooperative Republic of Guyana, and PK Ashok Babu, a 2007 batch IFS officer, has been appointed as the next Ambassador of India to the Bolivarian Republic of Venezuela. These diplomats’ varied backgrounds and fresh perspectives symbolize India’s reinvigorated engagement strategy towards the LAC region.
This period also witnesses growing engagement between startups across Bangalore to Delhi and countries like Chile, driven by appealing government incentives and a growing consumer market in the LAC region.
India’s intensified focus on the LAC region, housing over 660 million people with a combined GDP surpassing US$6 trillion, is a calculated endeavour to tap into a market ripe with opportunities in consumer goods, healthcare, education, and more. This narrative extends beyond economics, marking a new chapter of cultural and intellectual exchanges as Indian minds make their mark in universities from Santiago to Santo Domingo.
Young LAC Region Business Experts
Hari Seshasayee, Mumbai based LAC Region expert, aptly encapsulates the sentiment, opining, “India’s recent interest in Latin America… reflects the growing global relevance of both regions… I see Latin America as fertile ground for understanding challenges similar to those faced by India, like economic development, innovation, poverty alleviation, and political movements.”
Sandeep Wasnik, Advisor of Latin America and the Caribbean countries, also notes the burgeoning entrepreneurship in the LAC region, indicating a conducive environment for mutual growth. The World Bank’s projection of a five percent annual increase in Foreign Direct Investment (FDI) inflows to Latin America between 2023 and 2027 highlights the region’s economic vibrancy.
Yet, this journey is not without hurdles. The economic impediments of inflation, poverty, and inequality in the LAC region call for pragmatic and sustainable solutions. The youthful vigour and innovative spirit of India’s new diplomatic vanguard, along with established collaborative frameworks, show promise in overcoming these challenges.
The India-LAC alliance symbolizes a new dawn of diplomatic and economic partnerships, spurred by a young diplomatic cadre, aligning with the principles of modern globalization. Amidst the evolving landscape of global geopolitics, the India-LAC narrative is set to weave a story of collaborative growth, mutual respect, and lasting partnership.
More about the countries
Guyana
This cross-continental synergy is embodied in the establishment of the India-Guyana Chamber of Commerce (IGCC) in April ‘23, aimed at promoting trade, investment, and cultural exchanges, with former West Indies cricketer Ramnaresh Sarwan presiding as its President, epitomizing a blend of cultures and ideas.
Guyana, an English-speaking nation situated in the Caribbean, plays a vital role in the Caribbean Community (CARICOM), housing its headquarters in Georgetown. Notably, it boasts the distinction of being the only Western Hemisphere country with the largest Indian ethnic group. Despite the geographical distance, Guyana was the destination for approximately 1.2 million Indian indentured laborers who arrived in the 1830s. India and Guyana share similarities as predominantly agricultural, mineral-based, and rural economies, and both nations celebrate multicultural societies. India has expanded its crude import basket and is buying more from this Caribbean nation.
Panama
In Panama, there’s a significant presence of people of Indian descent, both within the Caribbean and Panama itself. Notably, Panama holds the distinction of hosting the largest Indian diaspora in Central America and was India’s first diplomatic mission in this region. As India’s global influence expands, Latin America has come into focus as a potential area for business growth. One sector with promising collaboration prospects is pharmaceuticals. Panama is actively working on developing a pharmaceutical hub, and a UN study has been conducted to lay out a roadmap for this endeavor, with India’s pharmaceutical industry playing a crucial role in this partnership.
Another area of cooperation centers on green hydrogen. Panama is aiming to become a hub for green energy, given its desire to reduce reliance on diesel fuel, currently used by 29 percent of ships passing through the Panama Canal. This shift towards cleaner energy aligns with Panama’s vision for a more sustainable future.
Trinidad and Tobago
India and Trinidad and Tobago have signed a Memorandum of Understanding (MoU) to collaborate in the realm of digital transformation, which includes sharing India Stack, a digital infrastructure. This MoU signifies a commitment to work together on capacity building, training programs, sharing best practices, exchanging public officials and experts, and developing pilot solutions, among other initiatives. This partnership follows discussions between Indian Minister Rajeev Chandrasekhar and Trinidad and Tobago’s Minister of Digital Transformation, Senator Hassel Bacchus.