India Establishes Trade Relations with LAC

Latin America is at present an opportune land for international trade and investments, due to some positive factors such as the reduction of tariff barriers, the modernization of infrastructure and the liberalization of the financial market. Regional trade agreements (Mercosur, ANDEAN, CARICOM) also play an important role in encouraging trade. As a result of these favorable conditions, many world economies are now looking to establish trade relations with Latin America countries.

Negotiations are held with Latin America countries in order to promote trade with world's major economies and emerging markets. India is one of the world economies, working to reduce trade barriers and establish collaboration with LAC. The country is looking to open up new markets by improving trade relations with the Latin America countries.

It should be mentioned that India's economic presence is now quite visible in the region, and its interests are diverse. Thus, since 2000, Indian companies have invested about $12 billion in the LAC. Investments were mainly made in economic sectors such as IT, pharmaceuticals, agrochemicals, mining, energy, and manufacturing. India’s trade with the region includes all various kinds of products, from soybeans to aircraft and minerals. Some of the leading Indian firms dealing in the region are the IT firm Tata Consultancy Services,  ONGC Videsh, Dr. Reddy’s Laboratories, Shree Renuka Sugars and others.

At present, there are 14 Indian companies in Argentina: mainly IT firms and companies related to manufacturing, such as pharma, cosmetics and agrochemicals. Venezuela, Uruguay and Bolivia also increased trade with India. India and LAC have also come closer in terms of investments.
In conclusion, India’s increasing interest in building trade relations with the Latin America countries has helped bilateral trade to grow.

Source:

http://www.americasquarterly.org/india-latin-america