I have been promoting India-Latin America business since 1996 as part of Economic Diplomacy. I had created and maintained a website businesswithlatinamerica.com since August 2005. Due to technical challenges, I had abandoned it in 2018. Also, I had a blog
from 2005 to 2019. I discontinued this in December 2019. But the contents are still available in the blog.
My Latin Americanaffairs blog includes business information also from January 2020.
Below is the basic information on trade and investment between India and Latin America.
Contents
What is new
Trade
Investment by Indian companies in Latin America
Latin American investment in India
Latin American market
What is new
Reliance resumes import of crude oil from Venezuela 20 December
Under the authorization granted by the US administrtion, Reliance has started importing crude oil from Venezuela and exported naptha in exchange.
Royal Enfield plans to set up its second CKD assembly unit in Brazil Nov 2024
The operations are expected to start in Manaus by January 2025. This new facility is being developed in partnership with Grupo Multi.
https://www.financialexpress.com/business/express-mobility-royal-enfield-to-expand-south-american-presence-plans-second-ckd-factory-in-brazil-3671151/
Bajaj Auto investing 10 million dollars in Brazil - October 2024
This is to expand local production beyond the current 20,000 motorcycles per year..The plant is located in Manaus.
https://www.ndtvprofit.com/amp/business/bajaj-auto-to-invest-more-in-brazil-amid-revival-in-exports
India opening an embassy in Bolivia September 2024
Rohitkumar R. Vadhwana has been appointed as the first Ambassador of India to Bolivia. Earlier, the Indian embassy in Lima was concurrently accredited to Bolivia
Embraer delegation in India - 15 September 2024
Brazilian aircraft manufacturer Embraer has sent a ten-member delegation to Bangalore for sourcing parts and services such as aerostructures, composites, machining, sheet metal, and software development.
Embraer is offering its C-390 Millennium transport aircraft to Indian Air Force. In February 2024, Embraer entered into a partnership with Mahindra Group on this.
The company has already established a presence in the country with over 44 aircrafts in use across commercial, executive, and defence segments. The Indian Air Force operates three EMB 145 AEW “Netra” military aircraft, while the Indian government uses five Embraer VIP jets.
Embraer is the third largest passenger aircraft maker after Boeing and Airbus.
Brazilian Big Business has started taking India seriously, at last…
The Brazilian business organisation LIDE (Grupo de Líderes Empresariales-Group of Business Leaders") has opened an India office in Mumbai to promote business between India and Brazil. Their first activity was to host the visit of a LIDE delegation from 2 to 6 September. The delegation was lead by the President of LIDE, João Doria Neto.
LIDE plans to host a four-day conference in India in August 2025. This event will feature 150 major business enterprises from Brazil, Latin America, and 20 other countries. This is also part of the G-20 events.
José Francisco Dutra, an economist/entrepreneur, is the head of the India office. Abhishek Issar is CEO LIDE Índia. Leonardo Ananda of India-Brazil Chamber is the chairman LIDE India.
LIDE is a network of top CEOs and entrepreneurs from Latin America, founded in 1978 in Brazil.
LIDE has chapters in some 20 countries including in Latin America, besides the major cities of Brazil. The headquarters is in Sao Paulo.
It is time for India to reciprocate with an office in Latin America/Brazil by CII or FICCI.
https://lide.com.br/imprensa/lide-inaugura-escritorio-em-mumbai-na-india
Indian super computer for Brazil August 2024
India’s Center for the Development of Advanced Computing (C-DAC) will build supercomputers in Brazil's Paraná state for research in the fields of genomics, precision agriculture and artificial intelligence. This is being done under a MoU signed in April 24 between Paraná governor, Carlos Massa Ratinho Júnior, and C-DAC.
In April 2018, C-DAC had signed MoU with ITAIPU Technology Park Foundation (PTI) - Brazil for similiar super computer job
Indian motorcycle assembly plants in Latin America
Hero Motors has announced that its operations will start in Brazil in the first quarter of 2025. They have already developed motorcycles with flexifuel engines using ethanol.
Hero already has an assembly plant for motorcycles in Colombia with a capacity to make 80,000 units.
Bajaj has an assembly plant in Manaus, Brazil with a capacity to make 20000 units scalable to 50,000.
Royal Enfield has assembly plants in Argentina, Colombia and Brazil.
WinZO partners with FGV of Brazil
India’s largest gaming and interactive entertainment platform has announced its strategic partnership with Fundação Getulio Vargas (FGV EAESP) of Brazil, for research projects and hiring local talent to expand rapidly in Brazil and beyond. Winzo plans to invest 50 m dollars in Latin America...
Indian IT company Mphasis plans to launch a ‘centre of excellence for financial services’ in Buenes Aires this August 2024
They want to start with about 50 employees and grow it to up to 200 in a year.
Already, they have operations in Mexico and Costa Rica for the last few years.
Mphasis works with 13 of the 15 retail banks in North America and seven of the 10 insurance companies there.
TCS intends to create 1,600 jobs in Londrina, Brasil - June 2024
Its goal is to reach 5,000 professionals at the unit in the coming years.
The Londrina operation will focus on strategic areas such as Business Transformation, AI and Cognitive Operations and will offer IT services not only to clients in Brazil, but in other countries too.
The new facilities in Londrina should be ready in two years and will be the company's main service center in South America, says TCS.
In addition to the Londrina center, the company is establishing its first innovation center in the Southern Hemisphere in partnership with São Paulo think tank Insper..
Bajaj Auto has set up a new production plant in Manaus, Brazil.
The facility was inaugurated on 26 June 2024 in the presence of the Governor of the Amazon state.
The Manaus facility has a production capacity of 20,000 units, with engine assembly, vehicle assembly and testing facilities.
Latin America received just 1.3 billion dollars of Chinese credit in 2023.
This is a slight increase in lending from the $863 million in 2022.
Between 2019-2023, the LAC region received an average of just over $1.3 billion per year from China as compared to peak lending of $ 25 billion in 2010
Report
India’s exports to Latin American countries are more than to neighboring countries and traditional trade partners
India’s exports of 266 million dollars in 2023-24 to the remote Honduras in Central America are more than the exports of 185 m to nearby Cambodia and 237 m to Kazakhstan. The population of Honduras is just 10 million as against 17 m of Cambodia and 20 m of Kazakhstan.
If you think this is incredible, here are some more:
India’s exports of 920 m to Peru are more than the 670 m to Myanmar.
Exports to Brazil (6022 million dollars) are higher than to the traditional trade partners such as Japan (5156 m), Indonesia (5988 m), Vietnam (5470 m) and Thailand (5038 m).
Exports to Mexico (5324 m) are more than the exports to Russia (4261 m), Canada (3845 m), Sri Lanka (4117 m) and Egypt (3520 m)
More in the blog
https://latinamericanaffairs.blogspot.com/2024/05/indias-exports-to-latin-american.html
Mexico-India coproduction of a telenovela (soap opera) "Valentina, mi amor especial"
Vip 2000 TV from Mexico and Zee TV of India are the coproducers.
The story is based on the Indian serial "Aapki Antara", produced in 2009 with portrayal of social issues, especially autism
The telenovela will be shot in the city of Guadalajara, Mexico starting inJuly this year.
Zoho opening data centre in Mexico - March 2024
Zoho is also expanding its operations in Latin America…News report
Kabil sending delegation to Chile for Lithium investment
In January, KABIL signed a 2-billion-rupee ($24.01 million) lithium exploration pact for five blocks in Argentina. The deal, signed with an Argentinian state-run enterprise, gives KABIL exploration and development rights for commercial production.
India-Peru FTA negtiations - February 2024
The sixth round of negotiatons for Free Trade Agreement with Peru was held in Lima on February12-14 and the 7th round in New delhi in April.
The negotiations started in 2017.
Indian credit rating and risk analysis company Crisil Irevena has opened an office in Bogota - February 2024
They have an office in Buenos Aires for over 16 years..They provide risk analysis service to global clients from their two offices in Latin America..
Rane invests in Mexico - January 2024
The Chennai-based auto components maker Rane is opening its first foreign plant in Aguas Calientes to make parts which will go into Electric Vehicles.Investment is about 6 million dollars.
India imports bull semen from Brazil -January 2024
India has imported 40,000 doses of bull semen from Brazil for the first time. The import has been done by NDDB. This will help the artificial insemination programme to boost milk production.
Latin America’s GDP growth in 2024 is projected at 1.8%
Brazil’s GDP is expected to grow by 1.6% (down from 3% in 2023), Mexico’s 2.5% (down from 3.6% in 2023), Colombia’s by 1.7% (up from 0.9% in 2023, Chile’s by 1.9% (up from 0.3% in 2023) and Peru’s by 2.4% (up from 0.1%). Central America’s GDP is expected to increase by 3.2%, down from 3.4% last year.
Surprisingly, Venezuela will have the highest growth among the major economies of the region with 4% (up from 3% in 2023). Unsurprisingly, Argentina will have a negative growth of 1%.
More in the blog https://latinamericanaffairs.blogspot.com/2024/01/latin-americas-economic-and-political.html
Lithium mine deal with Argentina - January 2024
Khanij Bidesh India (KABIL), a consortium of Indian mining and metal companies, has signed a contract with Argentina's state-owned Camyen SE in Catamarca Province for exploration and production of Lithium in five mining blocs in the province. The initial investment proposed is 24 million dollars.
Brazilian fintech unicorn EBanx enters Indian market offering yet another payment platform for Indian customers
https://business.ebanx.com/en/press-room/press-releases/ebanx-expands-operations-to-india
TCS Grows fast in Latin America
Latin America showed the highest annual growth (24.8%) among the regions of the world for the revenues of TCS in the financial year 2022-23. This is more than the growth in the Indian market which was 14.9%.
Latin America earnings of TCS reached 502 million dollars last year.
Source: TCS annual report 2022-23
MKU exports defence items to Latin America
MKU, a Defence manufacturing firm based in Kanpur, is a pioneer in exporting to Latin American market since 2004. They have supplied Bullet Proof Vests, Helmets, Electro optic devices, Ballistic Plates and Aircraft Armour to Brazil, Mexico, Peru, Ecuador. Chile, Uruguay and Argentina
Kalpataru gets a 159 million dollar power transmission line contract in Guyana- July 2023
more in the news item
Kalpataru has acquired 100% stake (in July 2023) in a Brazilian power transmission company Fasttel Engenharia based in Curitiba. Earlier they had 51% share in Fasttel. Now they have acquired the remaining 49% also.
Enterprise IT management services company Manage Engine, which is part of India’s Zoho, plans to have a datacenter in Brazil.
The company has offices in Colombia, Mexico and Brazil. In Latin America, the company has more than 7,000 customers. This year, the company is targeting a 25-30% growth rate in the region
https://www.bnamericas.com/en/news/indias-manage-engine-mulls-brazil-datacenter
Brazilian company WEG has set up the largest wind turbine generator in India
It is near Valliyoor in Tirunelveli district, Tamil Nadu. Its capacity is 4.20-MW and cost 11 million dollars. The diameter of the blades is 147 metres.
WEG intends to install 7 MW wind turbine generators in this area.
Tamil Nadu has the potential to generate 35 GW of wind power, with Dhanushkodi alone capable of producing 30 GW
WEG has a plant in Hosur in Tamilnadu to make electric motors. It has now diversified into wind turbines. It has around 500 employees.
The Brazilian multinational company has plants in 12 countries with annual revenue of 4 billion dollars.
Latin America has the mineral resources needed for global electrification
Copper and Lithium, among other minerals, are the most essential for the electrification drive.
Analysts at S&P Global estimate that annual copper demand will double between now and 2035 to reach 50 million tons per year. Renewable energy generation is far more copper-intensive than traditional power plants. S&P estimate that solar and wind use between two and five times more copper for each megawatt of electricity produced compared to coal or gas-fired plants. As the world uses more electricity, it requires more electric infrastructure – from substations to car charging points – which means more copper. Electric vehicles contain around three times more copper than a traditional internal combustion engine. Offshore wind farm uses about 5 mt of copper per MW, about five times more than a conventional power plant, and solar facilities utilize 2.3 mt of copper per MW, twice as much as conventional generation.
Chile and Peru are already the world’s number one and two copper producers. Controlling almost 40% of world supply, these two small nations have similar market share to the 13-nation OPEC. Mexico has the world’s fifth largest copper reserves.
Lithium is vital for the batteries needed to store the new electric power.
The lithium triangle of Chile, Bolivia and Peru contain more than 50% of the world’s reserves.
Brazil has the world’s third largest supplies of nickel, another vital battery metal.
Other metals will be used to build the new infrastructure to support the electric economy. One obvious example is iron ore, of which Brazil has the world’s second-largest reserves and Peru has the seventh. Another is zinc, which is the main tool for preventing corrosion of steel and iron. Peru and Mexico jointly have the fourth-biggest reserves of zinc, while Bolivia has the ninth. Tin is another important metal in an electrified world as it is used in every circuit board in existence. Again, Latin America dominates the rankings with Brazil having the fourth-largest reserves, Bolivia the fifth and Peru the seventh.
https://latam-investor.com/2022/09/latin-america-the-key-to-net-zero/
Embraer helicopters to India
India's helicopter services company Blade signs order for up to 200 electric vertical take-off and landing (eVTOL) airtaxis from Embraer of Brazil. The airtaxi service is expected to start in 2026.
More …https://timesofindia.indiatimes.com/business/india-business/embraer-arm-ties-up-with-indian-firm-to-deploy-air-taxis-here-within-5-years/articleshow/94465763.cms
ESL (Essel Propack Ltd) investment in Brazil ( October 2022)
EPL has announced investment of 20 million dollars in a greenfield project in Seropédica in the state of Rio de Janeiro, Brazil to produce plastic tubes for tooth paste for Procter & Gamble
BPCL-Petrobras MOU September 2022
India's state-run Bharat Petroleum Corp (BPCL) has signed a MOU with Brazil's national oil company Petrobras for sourcing of crude oil through long term contracts.
Reliance has been importing crude from Brazil for the last two decades.
Bharat PetroResources Limited (BPRL), the upstream subsidiary of BPCL, plans to invest $1.6 billion to develop an oil block in Brazil. BPRL holds a 40% stake in an ultra-deepwater hydrocarbon block in Brazil, owned and operated by Petrobras which has 60% share. The block is to start production from 2026-27. Multiple oil discoveries have been made in the block, which is being developed now. Originally, BPCL had partnered with Videocon for taking the stake in the block in 2008. IBV Brasil SA, a 50-50 joint venture between Videocon and BPRL held 40 per cent. But after the bankruptcy of Videocon, BPRL now owns the entire 40 per cent stake.
Indian IT company Zoho explores and expands in Latin American markets
Zoho’s enterprise IT management services company ManageEngine has opened two offices this year: one in Bogotá and another one in São Paulo. They plan a third one in Mexico. The company has reportedly more than 7,000 customers across Latin America which is 2.5% of the global customer base of 280,000.
Mahindra & Mahindra has announced in July 2022 its plan to set up a tractor assembly plant in Brazil.
The company already sells 54,000 units in Brazil each year and has about 5.2% of the market. M&M, the largest tractor manufacturer in the world, gets one third of its revenue from international business.
Indian BPO company "24x7" opens its third centre for delivery in Guatemala on 8 July 2022
The company has been operating in Guatemala since 2007.
The Guatemalan minister of economy Janio Rosales and the Indian ambassador were present during the inaguration ceremony.
MGM group from Chennai has seven Muthu hotels in Cuba and is opening 3 more..
Grand Muthu Cayo Guillermo, Cayo Guillermo
Gran Muthu Imperial, Cayo Guillermo
Muthu Playa Varadero, Varadero
Gran Muthu Almirante Beach Hotel, Guardalavaca
Gran Muthu Rainbow Hotel, Cayo
Muthu Colonial Hotel, Cayo Coco
Muthu Las Tunas Hotel, Las Tunas
Gran Muthu Habana, Miramar (Opening Soon)
Muthu Lincoln Hotel, Centro Habana (Opening Soon)
Gran Muthu Ensenada, Holguin (Opening Soon)
Kalpataru, the Indian power transmission company, acquires a Brazilian EPC firm Fasttel Engenharia for 9 million dollars.
Kalpataru is already present in Brazil and has recently won a big project contract worth more than 400 million dollars in Latin America.
Other Indian companies such as Karamtara, KEC, Sterlite and Skipper have supplied equipments and won contracts worth several hundred million dollars to Latin America in recent years.
Indian Line of Credit to Honduras
Apollo International Ltd of India gets a 22 million dollar project in Honduras. This is an irrigation project in the Jamastran valley area of Honduras. It includes supply of pumps and irrigation equipments. The project is estimated to irrigate 3,060 hectares of land and benefit about 1200 farmers.
The Government of India is financing this project with a Line of Credit. India had given earlier another credit of 35 million dollars in 2006
Royal Enfield has opened an assembly plant in Envigado, Antioquia, Colombia.
The company has another assembly plant in Argentina, started in 2020.
There are 57 exclusive stores in Latin America, along with 40 other retail establishments selling Royal Enfield motorcycles
Tata Consultancy Services Ltd. (TCS) has won a contract from Colombian airline Avianca
This is to modernise the IT infrastructure and build a new future-ready cloud-based digital core on Microsoft Azure. TCS will help Avianca to migrate 129 core applications to the cloud and also manage the new cloud estate.
Brazilian fintech Nubank invests in Indian fintech venture Jupiter
Nubank has co-lead an investment of 45 million dollars in Jupiter in August 2021.
Trade
India’s exports to Latin American countries are more than to neighboring countries and traditional trade partners in 2023-24
India’s exports of 266 million dollars in 2023-24 to the remote Honduras in Central America are more than the exports of 185 m to nearby Cambodia and 237 m to Kazakhstan. The population of Honduras is just 10 million as against 17 m of Cambodia and 20 m of Kazakhstan.
If you think this is incredible, here are some more:
India’s exports of 920 m to Peru are more than the 670 m to Myanmar.
Exports to Brazil (6022 million dollars) are higher than to the traditional trade partners such as Japan (5156 m), Indonesia (5988 m), Vietnam (5470 m) and Thailand (5038 m).
Exports to Mexico (5324 m) are more than the exports to Russia (4261 m), Canada (3845 m), Sri Lanka (4117 m) and Egypt (3520 m)
More in my blog
https://latinamericanaffairs.blogspot.com/
India’s exports to Latin America increase by an impressive 19% in 2022-23
India’s exports to Latin America reached a record high of 22.41 billion dollars in 2022-23 (April-March), according to the Commerce Ministry of India. The exports have increased by an impressive 19% from 18.89 billion dollars in 2021-22, exceeding the 6.86% increase of India’s global exports.
There is more good news:
India’s exports to some of the distant Latin American countries are more than the exports to neighboring countries or traditionally important trade partners. This is a trend of the last several years not just a one-year-wonder. Examples:
-India’s exports to Brazil (9.9 bn) are higher than to the traditional trade partners such as Japan (5.46 bn), France (7.6 bn), Italy (8.7 bn) and neighbors such as Thailand (5.7 bn), Nepal (8.01 bn) and Sri Lanka (5.11 bn)
-Exports to Mexico (5.2 bn) are more than the exports to Russia ( 3.15 bn), Canada (4.11 bn), Spain (4.66 bn) and Egypt (4.1 bn)
-Exports of 273 m to the remote Honduras are more than the exports of 220 m to nearby Cambodia.
-Exports of 465 million dollars to the distant Guatemala are more than the exports of 437 m to Kazakhstan
-Exports of 1.45 billion to Colombia and 1.17 billion to Chile are also higher than the exports to some other neighbors and traditional trade partners.
More in the blog https://latinamericanaffairs.blogspot.com/2023/06/indias-exports-to-latin-america.html
India’s exports to Latin America increase by an impressive 48% to a record 18.9 billion dollars in 2021-22
India’s exports to Latin America reached a record high of 18.89 billion dollars in 2021-22 (April-March), according to the Commerce Ministry of India. The exports have increased by an impressive 48% from 12.74 billion dollars in 2020-21.
Brazil continued as the # 1 destination of India’s exports to the region, with 6.49 billion dollars, an increase of 53% from 2020-21.
Mexico was #2 with 4.42 billion dollars – increase of 43%.
Argentina came back to claim the third position after many years, with 1.43 billion dollars – an incredible 107% increase from last year.
Colombia was #3 with 1.38 billion- increase of 59% from 865 million.
Chile joined the Billion Dollar Club for the first time with 1.18 billion, increasing by 47%.
The other major destinations were: Peru 898 million and Guatemala 552 m
Exports to the other countries are in the table below.
Exports to the three major trade blocs in the region were: Mercosur were 8.28 billion, Pacific Alliance 7.88 bn, and CAFTA (Central America + Dominican Republic) 1.95 bn
India’s exports to some of the distant Latin American countries are more than the exports to neighboring countries or traditional trade partners with same or more population. This is a trend of the last several years. Examples:
India’s exports of 552 million dollars to the distant Guatemala (population 11 million) are more than twice that of the exports of 198 m to the neighbouring Cambodia with a population of 16 million.
Exports of 318 m to the remote Honduras (population 10 m) are more than the exports of 235 m to nearby Kazakhstan with a population of 19 m.
Exports to Brazil (6.48 bn) are higher than to the traditional trade partners such as Japan (6.18 bn) and Thailand (5.7 bn)
Exports to Mexico ( 4.43 bn) are more than the exports to Canada ( 3.7 bn) and Russia ( 3.2 bn)
Major exports
Vehicles 3835 m (increased from 2608 million dollars last year)
Chemicals 3139 m ( 2534 m last year)
Petroleum Products 2111 m.
Machinery 1664 m
Pharma 1486 m
Textiles 1015 m
Cotton. 761 m
Plastics. 518 m
Iron and steel 905 m
Aluminium products 688 m
Rubber products 415 m.
Car exports
Car exports to Latin America were 1793 million dollars. This was 30% of India’s global car exports of 5.92 bn dollars. Mexico was the second largest global market for Indian cars with 941 m. Other major destinations: Chile 337 m and Peru 115 m
Motorcycles
Exports of motor cycles were 909 million dollars. This is 30.5 % of India’s global exports of 2.99 bn.India was the second largest supplier of motorcycles to Latin America.
Major destinations were Colombia 309 million dollars, Mexico 174 m, Guatemala 103 m and Peru 43 m. Colombia was the second largest global market for Indian motorcycles after Nigeria. Some years back Colombia was the # 1 destination. Indian brands are market leaders in Colombia and Guatemala.
Pharmaceuticals
Pharma exports increased to 1486 million dollars from 1196 m last year. India ranked as #6 supplier of pharmaceuticals to the region
Major destination of India’s pharma exports: Brazil 374 million dollars, Peru 105 m, Chile 153 m, Mexico 167 m, Colombia 103 m, Dominican Republic 67 m, Venezuela 102 m, Guatemala 64 m, Bolivia 46 m and Ecuador 34 m.
India ranked as #3 supplier of organic chemicals to the region.
L and T exports Naval ship to Chile - February 2021
This is a small vessel costing 11.5 million dollars, paid for by the US Department of Defence, as part of their defence assistance to Chile.
The vessel was delivered in February 2021
Indian company MKU supplies bullet-proof vests to Sao Paulo Police - February 2021
The Kanpur-based MKU has supplied bullet-proof vests to the Sao Paulo Police department. The company has got an order for export night vision goggles to the Brazilian army and helmets to Chilean armed police.The company has entered the Latin American market successfully in recent years with supply of vests and helmets to Brazil,Mexico, Chile, Ecuador, Argentina, Peru, Columbia, Guatemala.
Imports
India’s imports from Latin America were 25.62 billion dollars in 2021-22. Major suppliers were: Brazil 5.71 bn, Mexico 4.25 billion, Argentina 4.2 bn, Peru 2.71 bn, Colombia 2.96 bn, Chile 1.37 bn, Bolivia 2.07 bn, Ecuador 1.01 bn and Dom Republic 649 m, Panama 292 m, Uruguay 162 m and Venezuela 89 m
Main import items:
Crude oil 9.18 billion dollars
Gold. 6.91 bn
Vegetable oil. 4.34 bn
Copper 995 million dollars
Machinery 545 m
Wood 480
Chemicals 419 m
Iron and steel 321 m
Fruits& vegetables 285 m
Main sources of crude oil imports: Mexico 3.42 billion dollars, Brazil 2.25 bn, Colombia 2.32 bn andEcuador 865 million.
Venezuela used to be the major source of oil imports in the region for the last fifteen years. But the US sanctions have drastically cut down the Venezuelan supply from its peak of around 10 billion dollars to just 89 m in 2021-22. There was no import in 2021-22.
Gold import sourcing: Peru 2.32 billion dollars, Bolivia 2.06 bn, Brazil 703 million, Dom Republic 600 m, Colombia 548 m, Argentina 465 m and Mexico 147 m.
Latin America is the main source of soy oil imports of India. Argentina, as usual, was the #1 global supplier of soy oil with 3.27 billion dollars, followed by Brazil 1.07 bn.
More in the blog
http://latinamericanaffairs.blogspot.com/2022/05/indias-exports-to-latin-america.html
PTA with Mercosur
Preferential Trade Agreement (PTA) was concluded in march 2005. Preferential duty ( 10-20 percent in most cases) is given to 452 Indian products entering mercosur and reciprocal concession to 450 products of mercosur entering India. The PTA has become effective from June 2009.
Duty discount for 452 Indian exports as follows:
10 % : 394 products
20 % : 45 products
100%: 13 products
Duty discount on 450 Mercosur exports:
10 % : 93 products
20 % : 336 products
100 % : 21 products
Negotiations are going on sporadically for the last several years to expand the PTA. Bigger lists of items to be covered have been exchanged. The chances of any outcome in the near future are slim given the current uncertainty faced by Mercosur. The new administration of Brazilian President Bolsonaro does not attach the same importance to the group as the previous Presidents had done so since the formation of Mercosur in 1991.
PTA with Chile
India and Chile signed expanded PTA on 6 September 2017 to build on the original PTA signed in 2006.
Under the expanded PTA, Chile has offered concessions to India on 1798 tariff lines with Margin of Preference (MoP) ranging from 30%-100% and India has offered concessions to Chile on 1031 tariff lines at 8-digit level with MoP ranging from 10%-100%.
In the original PTA concluded in March 2006, India’s offer list to Chile consisted of 178 tariff lines the Margin of Preference (MoP) ranging from 10%-50% at 8-digit level and Chile’s offer list to India consisted of 296 tariff lines with MoP ranging from 10% - 100% at 8-digit level.
FTA with Peru, Colombia and Mexico
The government of India has initiated preliminary negotiations with Peru and has held three rounds of negotiations. There have been some initial talks for a India-Ecuador PTA/FTA. There is need for FTA/PTA with Colombia and Mexico too
Lines of Credit
The Government of India has started giving lines of credit (LOC) Latin American countries at concessional terms since 2003. These are being operated by Eximbank of India.
Cuba has been given 248.06 mn USD through 6 different LOCs
Nicaragua 94.98 mn USD, through 5 LOCs
Honduras 53.13 mn through 2 LOCs
LOC of USD 100 mn was announced for Bolivia in 2019 during the visit of Indian President to Bolivia. This is yet to be utilised.
Eximbank has given its own commercial Lines of Credit to some Indian companies for exports and investment in Latin America. It has also given some commercial lines of credit to governments, banks and regional organisations in Latin America, which remain mostly unutilised. The Eximbank office in Washington DC deals with LOCs to Latin America.
Indian investment in Latin America
Indian companies including NRI firms have invested about 10 billion dollars in the region in energy, manufacturing, IT, pharmaceuticals, agro-chemicals, steel, mining, agribusiness and other sectors. The Indian investment reached its peak around 2012 after which some companies have pulled out/sold their operations in the region. These include Renuka Sugar investment of 500 million dollars in Brazilian sugar sector and Havell’s investment of 150 million dollars in the region in Sylvania lighting assets. On the other hand, there have been increase in investment by small and mid-level companies in manufacturing sectors.
For detailed information on the investment by Indian companies in different countries of Latin America and investment in India by Latin American firms, please contact the author of the website
Latin American market
The market consists of 19 countries, with a population of 620 million and combined GDP of about 6 trillion.
Latin American GDP is forecast to grow by 2.9% in 2022
Except Brazil where Portuguese is spoken, all the other 18 countries speak Spanish.
The countries are:
Mexico, Colombia, Peru and Chile - Pacific Alliance, the group which aspires towards a customs union.
Brazil, Argentina, Paraguay and Uruguay - Mercosur, which is a customs union. It has common external tariff and allows free movement of goods, services, people and capital.
Bolivia, Ecuador, Venezuela - unattached South American countries
Panama, Nicaragua, Costa Rica, Guatemala, El Salvador, Honduras - Central American Integration Group (SICA) with some common institutions and some free movement of goods
Dominican Republic and Cuba- the spanish speaking Caribbean countries
Brazil is the largest market with over 2 trillion dollars of GDP and over 200 million people. Mexico is second with close to 2 trillion dollars GDP and population of 110 million. But Mexico is the largest trading nation ( thanks to NAFTA trade) with 464 billion dollars of imports and 451 billion exports.