Region:
BRICS
Category:
Economy
Article type:
Approaches

Argentina and India protagonists of a beneficial partnership for both

Region:
BRICS
Category:
Economy
Article type:
Approaches
Author/s:
By Dr. Christian W. Meniw
Publication date:
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India needs natural resources and expand its infrastructure development in the agricultural sector which currently depends on 70% of its population, and Argentina needs investment in machinery and skilled manpower in science and technology

As President of the Indo Argentina Chamber in Argentina, I see that this is a unique opportunity for our country considering that since March last year a camera Indo Argentina was created in India, whose subsidiary is located in Argentina, before the great need our country to generate foreign exchange earnings in the local market and before a year expectation generated by the foreign trade policy we will have in effect from December.

India is presented as a large door both to generate further growth in Argentina to be helpful to Argentina for India; but note that my vision is not mine alone, but of all Directors of the Chamber especially our Chairman, Ambassador Dr Prithvi Singh Ravish, which sees Argentina as a major gateway to Latin America, together with Brazil and Mexico.

Currently, the relationship to trade between Argentina and India has doubled since 2009, reaching 1.937 million dollars in 2013 and reach closure last year with a balance that reached 3,000 million with a strong surplus for our country. India also stands out as an investor weight on the global stage. During 2012 and 2013, Latin America received over 25,000 million dollars in investments Indian companies, which means 11% of the investment flow in the country. In those moments 14 major Indian firms operating in Argentina.

The trade balance last year involving the exchange of goods and services by $ 2,000 million and trade was 3,000 million. The largest bilateral impact between India and Argentina took a leap of 107.38 percent in 2010, when it totaled 2.530 billion, with a surplus of 1,530 million due to exports 2.030 billion, boosted by oil soya, which Argentina placed in India as a result of falling sales of the product to China, from prohibition of imports of Chinese Barbies to our country. Also, today Argentina imported mainly organic chemicals, equipment sound systems, parts, machinery, textiles, synthetic fibers, clothing, plastics, dyes and steels.

The main products that India buys the world with crude oil, gold and silver, electronics, pearls and precious stones, non-electrical machinery, organic and inorganic chemicals, coal, coke and briquettes, auto parts, minerals and alloys, iron and steel. There is also great potential for the sector of wines and sweet and so many more that it is necessary to conduct a market survey and give it a tariff position the product to be imported or exported.

Argentine firms Techint, Impsa, Biosidus, Bago and Arcor have investments in India, while in Argentina there is capital of 21 Indian companies in the steel, agricultural, agrochemical, chemical, computer items, vehicles, water pumps and air, drugs, cosmetics, transport, tractors, oil and energy, consulting and infrastructure.

We are at a key moment because world trade grows and exports and imports between all countries of the world rise. Forecast UNCTAD (United Nations Conference on Trade and Development) in 2014 was a rise in world exports of 4% (increased by 2.8% last year).

In a past study, the WTO said that "in recent years, world trade has grown, on average, almost twice as fast as world output. This reflects the increasing dominance of international value chains and, therefore, the importance of measuring trade in value added. "He stated that the accumulation of capital and strengthening of knowledge and technology associated with investment, particularly foreign direct investment, which allows countries to enhance the value chain to alter their comparative advantages. One report notes that between 1980 and 2011, developing economies increased their share in world exports from 34 to 47% and its share in world imports from 29 to 42%.

In the case of Argentina, in 2014, except in the case with India had a significant growth rate in the world, the volume of exports fell 10% and this indicates two things: first, that Argentina at a difficult time increased its trade with India, and the other, who increasingly need to pay more attention to India because it is an example of the new approach to economics that we will have in the future whose roles of prominence it occupied China, India , Indonesia, Russia, South Africa, Brazil, Turkey and Argentina.

India needs natural resources and expand its infrastructure development in the agricultural sector which currently depends on 70% of its population, and Argentina in turn needs investment of machinery and skilled in science and technology work, to be in the big leagues in the next 20 years. All this depends on each independently of the role they occupy in society and governments of both countries, so soon begin to see because it is a relationship that can be strategic for both India and for Argentina.

Namaste!

traslation: Belén Zapata