Latin America & Caribbean region have emerged as potential growth market for India with significant complementarities and synergies in trade and business. The Indian Government has a renewed focus on LAC region with a ‘Focus LAC Strategy’ and expects higher economic engagement between the LAC region and India.
India’s trade with LAC in 2016-17 was $30 billion, of which export was $10.4 billion and imports $19.6 billion. The potential for trade is expected to be $100 billion by 2025.
Key drivers of growth in bilateral relations between India and LAC countries:
- Both India and larger LAC economies have similar imperatives of inclusive growth and ‘complementarities’ of growth models
- Growing bilateral investment, with over 100 Indian companies in LAC/ 40 Latin American companies in India
- LAC economies increasingly looking beyond traditional partners as United States and China
FICCI’s LAC Division is committed towards enhancing collaboration and cooperation between India and LAC countries. While promoting bilateral trade is an important part of work, the team also engages with various stakeholders on policy issues to further the commercial relationship. There is a large focus on investment led trade and to move away from the current status of commodity trading and pushing private sector towards value-added products and helping companies to be part of the global supply chain. The division is actively engaged in tracking new avenues of collaboration for Indian companies through:
- Opportunities with regional groups as Pacific Alliance, MERCOSUR CARICOM, ECELAC, SICA
- Providing industry inputs to facilitate trade agreements (India-Mercosur PTA, India-Chile PTA and India-Peru Trade Agreement*)
- Sector-focused business delegations to LAC countries
- Participation in the sectoral fairs in the LAC region to increase business engagement
- Organizing B2B engagements for business delegations from LAC countries
- Organizing India-LAC Investment Summits to promote bilateral investment
FICCI’s sectoral approach constitutes the following: IT/ITES, digitalization technologies, pharmaceuticals, chemicals, affordable healthcare, renewable energy, media & entertainment, textiles, food security, energy security, aerospace, shipbuilding, infrastructure & housing and minerals. FICCI is also designated the lead organization by Ministry of Commerce for promoting Healthcare, Defence & HLS and Textiles sectors in LAC region. FICCI is the technical secretariat to the India-Brazil Business Leaders Forum designated by Department of Industrial Policy and Promotion (DIPP) and BRICS Business Leaders Forum.