Region:
BRICS
Category:
Economy
Article type:
Opinion

India is a great partner for Latin America

Region:
BRICS
Category:
Economy
Article type:
Opinion
Author/s:
By Dr. Christian W. Meniw
Publication date:
Print article

The difference between China and India is that India is an economy that does not depend on foreign direct investment to have the growth that has taken over the last 10 years with peak growth between 9% and 6%

India and Latin America with significant economic potential and significant opportunities for mutual investment. As such, it is advocated that economic ties to narrow to seize those opportunities. India has the potential to replicate the economic performance of China, which has become an important market for Latin American exports, but also poses a challenge for the manufacturing sector of this country. Both India and Latin America have made extraordinary progress in finding their own way back to the global economy.

The difference between China and India is that India is an economy that does not depend on foreign direct investment to have the growth that has taken over the last 10 years with peak growth between 9% and 6%, such as closed ytd.

Prospects

The prospects for the future development of relations between India and Latin America are encouraging, as these economies are complementary and experienced sustained growth. India is interested in oil that abounds in many Latin American countries such as Venezuela and Brazil and can offer in exchange cooperation in sectors such as pharmaceuticals, engineering and agriculture. In the engineering sector, India is a major producer of all kinds of motor vehicles and software; and in the sector of agriculture, is the example of the production of milk, tea, rice, which are also items that are consumed in large quantities in Latin America. Another important contribution of India to the countries of the region is in the area of communication technologies where India today remains fairly close relations with countries like Brazil, Argentina, Uruguay, Dominican Republic and Venezuela.

All this means that we must focus on strengths between the two territories.

Despite the economic crisis for several years until today, the economic policies of the Indian government have managed to maintain a stable financial system of the country. Multiple policies pursued by India have been to safeguard its economy in many ways and this has helped mitigate the crisis; its banking system is strengthened because it has a number of very strict regulations that protect the entire financial system. The manufacturing sector has been very protected because they are implemented financial stimulus packages that reach six billion dollars.

The economic and political changes that occurred recently in India and Latin America are creating greater opportunities to promote greater integration. In the future, it is expected that tariffs and other trade barriers, particularly in agriculture, is gradually reduced. According to experts, India's commercial profile will change and offer great opportunities for Latin America. The commercial potential of both territories will be related to the growth rate to reach India in the coming years, both have the potential to increase opportunities to facilitate the exchange of lessons learned on cooperation, development and economy.

India can offer services in information technology, microfinance, in the aerospace and pharmaceutical industries. Latin America instead can offer services in sectors such as agriculture, mining, aviation, biofuels and programs poverty alleviation.

The importance of Latin America in the global economic strategy of Indian firms is increasing; exports, particularly to its main regional partners in areas such as textiles, handicrafts, chemicals, software, and drugs for use in the pharmaceutical industry. It was also considered to increase imports of cereals, food, motors, crude oil and steel manufactures from Argentina; auto parts, vehicles, coffee, soybeans and iron ore from Brazil; Copper and seafood from Chile; crude oil, oil, silver, vehicle engines, components for personal computers from Mexico; Venezuela and acquire petroleum, bauxite, aluminum, petrochemicals and steel. Latin America sends only about 1% of its exports to India, anxious to obtain raw materials should be an important engine of growth for the region country.

Latin American agricultural products suffer 65% average tariffs to enter India, more than five times the 12.5% that was taxed in China; and as for manufactured products in India have to pay very high tariffs in Latin America. It is speculated that lower tariffs on Indian goods by 10% stimulate a jump of about one third of income from those assets to our area; therefore, in order to increase trade, should effectively address barriers to bilateral trade: both should reduce tariffs and related barriers, which today are quite strong despite the various agreements signed between Latin American countries and India . They should also be strengthened direct shipping services between Latin America and the Caribbean and the nation in South Asia, since today is very much dependent on other Asian countries and Europe for products leaving or arriving at the Asian nation.

What comes as the Chamber of Commerce Indo Argentina

The Chamber of Commerce Indo Argentina by Ambassador Dr Ravish Prithvi Singh in India, and my position in Argentina, held last January meetings in Peru with Peruvian Chamber of Commerce Indo together with Ambassador of India to Peru and Bolivia Mr. Manpreet Vohra, and in Ecuador with the Business Advisory Correa Eduardo Egas, meetings which can conclude that great strides have come in the region in relation to India and Latin America as it is put forward in this article. An example of this will be the first visit of the President of Ecuador Rafael Correa in India and the opening of the Indian Embassy in Ecuador. Our vision as a Chamber of Commerce for this year will boost regional trade and bilateral mainly with India and with all the cameras in the region such as Chile, Colombia, Peru, which are the most important in the region. Similarly we will work together with the Indian Embassy for all we achieve a strong pro-India relationship synergy Latin America because India every day should be closer to us for the development of our region.

Namaskar!

traslation: Belén Zapata