Business opportunities in Argentina and Mexico with India

By Veronica Mussio
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Argentina has very large business opportunities with India, is not only a historic opportunity to export agricultural products, but also the possibility of strategic alliances in areas such as technology, minerals, agricultural chemicals and engineering

Historically, Argentina and India were so far in commercial terms as 15,000 miles between the two countries. The picture, however, began to change a few years ago the product of economic progress India has experienced, and their need for food and other products that produced the rapprochement with Latin America.

The Indian economy experienced a turning point in 1991 with the introduction of a series of reforms and a commitment made ​​by the country to education and technological development. Fifteen years ago, technology companies accounted for 1.2% of gross domestic product (GDP) of the country and in 2009 that percentage had climbed to 5.8%. The Indian government expects exports of software and technology services to reach $ 80,000 million in 2011, which would maintain the current growth rate of 30% annually.

Between 2000 and 2010, trade between China and Latin America increased tenfold to over $ 19,000 million annually. In this context, Argentina still appears in the background and now represents about 10% of Indian investments in the region, far from the 25% that takes Brazil.

Argentina has very large business opportunities with India, but from my point of view is not only a historic opportunity to export agricultural products such as soybean oil has been exporting Argentina to India, but also the possibility of strategic alliances in areas such as technology , minerals, agricultural chemicals and engineering. India has Bollywood, and a technology center also located in Mumbai, and major research centers and pharmaceutical, biotechnology, etc industries, Argentina as India has very good professionals in these areas. This would open doors to technological and artistic cooperation, cultural exchanges, student.

The leading Indian investment in the Argentine market is United Phosphorus, a company specializing in the production of agrochemicals and seeds already up three factories and a research and development company in the country, although the list of companies that are being installed in the country also include laboratories (such as Glenmark), agricultural (Olam, Sterling Group), auto parts (Ashok Leyland) and even toiletries manufacturers like Godrej Group, which is closing the purchase Issue Group of Argentina. But the area in which Indian companies were most active was in the software and technology services.

Today the presence of Argentine companies is very low and limited to very specific cases of large companies such as Impsa, which set up an office in the city of Gurgaon (on the outskirts of Delhi) and Arcor, which has a local distributor.

India also offers a huge potential in some sectors. A study by the McKinsey Global Institute, over the next two decades the country will require investments of $ 120,000 million in the infrastructure area and by 2030 the major Indian cities will be larger in population than many countries.

An interesting potential is the operation of airports. In India there are 80 stations, of which 20 are international flights. In 2004 a privatization process began and today there are six airports that are operated by private groups, although the government's intention is to bring more private capital to the business.

Leather and leather goods are also niches with potential, since India has a high level of beef production exported but not consumed by their religious traditions as well as fine wines, although they are not consumed by the local people have an important market in 5-star hotels.

Argentina imports mainly organic chemicals; Sound equipment systems; auto parts; machinery; tissues; synthetic fibers; clothing; plastic products; tinctures, and steels.

The main products are India buys the world 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 ferroalloys and iron and steel.

In the case of Mexico, a legend in the seventeenth century there was an Indian princess from Rajasthan called Meera, daughter of a concubine of one of many of the wives of the rajah. Meera and her family had to flee to India due to the Turkish invasion and then she was sent to Mexico at age 15, to work as a house maid.

Meera would later be known as the "Chinese" because at the time, wrongly, all of whom came from Eastern were considered "Chinese".

Between a life of suffering and having lived most of his life in Puebla, Meera dies, but his colorful clothing and ornaments with beads and sequins was used as inspiration for the national costume in his honor is called "Chinese Puebla ".

The story of Princess Meera is an example of how Mexican Indian history and date back to very ancient times, and is also a reminder that we must multiply the presence of Mexican products in the world's third largest country in economic growth.

The value of bilateral trade between Mexico and India has increased in the last decade by about 630%; however, the result has been in deficit for Mexico.

Both Argentina and Mexico have huge possibilities with this country that is a continent in itself, for its population and diversity.

traslation: Belén Zapata