Opportunities for Indian Exports in Latin America[1]

8/8/2019 Opportunities for Indian Exports in Latin America[1]

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OPPORTUNITIES FOROPPORTUNITIES FOR

INDIAN EXPORTS ININDIAN EXPORTS INLATIN AMERICALATIN AMERICA


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INTRODUCTIONINTRODUCTION

Latin America consists of 20 countries. The majorLatin America consists of 20 countries. The majormarkets aremarkets are Argentina,Brazil,Chile,MexicoArgentina,Brazil,Chile,Mexico etc.etc.

The Latin American region with a populationThe Latin American region with a populationexceeding 568 million and a GDP of USD 4.26exceeding 568 million and a GDP of USD 4.26

trillion, has arrived on the global stage as antrillion, has arrived on the global stage as anemerging economic area.emerging economic area.

India with a GDP of USD 1.05 trillion (FY 2008India with a GDP of USD 1.05 trillion (FY 2008--09),09),has become the fourth largest economy in the worldhas become the fourth largest economy in the world

in terms of purchasing power parity.in terms of purchasing power parity.IndianIndian corporatescorporates in the Pharmaceutical, Energyin the Pharmaceutical, Energyand Information Technology sectors haveand Information Technology sectors havesuccessfully established a base in this economy.successfully established a base in this economy.


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LATIN AMERICALATIN AMERICA


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INDIAS FOREIGN TRADEINDIAS FOREIGN TRADEIndias exports during March, 2010 were valued at Rs.Indias exports during March, 2010 were valued at Rs.

90537cr which was 36.9 per cent higher than the respective90537cr which was 36.9 per cent higher than the respectivefigure for march 2009 which was Rs. 66169cr.figure for march 2009 which was Rs. 66169cr.

Cumulative value of exports for the period AprilCumulative value of exports for the period April--2009 to2009 toMarchMarch--20102010 was Rs 835264cr as against Rs. 840754crwas Rs 835264cr as against Rs. 840754crregistering aregistering a negative growth of 4.7% in dollar termsnegative growth of 4.7% in dollar termsandand 0.7% in rupee terms `over the same period last year.0.7% in rupee terms `over the same period last year.

Indias imports during March, 2010 were valued atIndias imports during March, 2010 were valued atRs.126175cr representing a growth of 48.4Rs.126175cr representing a growth of 48.4 per cent overper cent overthe level of imports valued at Rs. 85022cr in March, 2009.the level of imports valued at Rs. 85022cr in March, 2009.

The trade deficit for April 2009The trade deficit for April 2009-- March 2010 was estimatedMarch 2010 was estimatedat US $ 102106 million which was lower than the deficit ofat US $ 102106 million which was lower than the deficit ofUS $ 118401 million during April 2008US $ 118401 million during April 2008 --March 2009.March 2009.


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Trade relation between IndiaTrade relation between India

and Latin America(2009)and Latin America(2009)


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INDIAN EXPORTS TO LATIN AMERICAINDIAN EXPORTS TO LATIN AMERICA

Indias exports to the Latin American countries have grownIndias exports to the Latin American countries have grownat a rapid pace during the last decade.at a rapid pace during the last decade.

India's exports to the Latin American region increased fromIndia's exports to the Latin American region increased fromUS USD 2.16 billion in 2004US USD 2.16 billion in 2004--05 to US USD 6.01 billion in05 to US USD 6.01 billion in

20082008--2009, registering a growth of about 178pc.2009, registering a growth of about 178pc.Indias exports to the region have increased by nearly 6Indias exports to the region have increased by nearly 6times in 10 years (1996times in 10 years (1996--97 to 200597 to 2005--06).06).

However India's exports to the region went down by aboutHowever India's exports to the region went down by about30 percent in 2009 in comparison to 2008.30 percent in 2009 in comparison to 2008.

WhileWhile the global imports of the Latin American region arethe global imports of the Latin American region are

US$ 526 billion in 2005, Indias exports had a share of justUS$ 526 billion in 2005, Indias exports had a share of justabout 0.5% in the imports of the region.about 0.5% in the imports of the region.

Indias exports to LAC have been at an average of 3% ofIndias exports to LAC have been at an average of 3% ofIndias Total Ex orts over the last two earsIndias Total Ex orts over the last two ears


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% share of exports to LAC as% share of exports to LAC as

compared to total exports.compared to total exports.


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OPPORTUNITIES OF INDIAN EXPORTSOPPORTUNITIES OF INDIAN EXPORTSTO LATIN AMERICATO LATIN AMERICA

Recent economic and political changes in both India andRecent economic and political changes in both India andLatin America are creating greater opportunities for moreLatin America are creating greater opportunities for moreintegration.integration.

According toAccording to MeeraMeera ShankarShankar -- the Indian Ambassador tothe Indian Ambassador tothe US,the US, ""India's trade profile is going to change and thatIndia's trade profile is going to change and thatwill provide great trade opportunities for Latin America''.will provide great trade opportunities for Latin America''.India's gross domestic product is expected to grow 8.5India's gross domestic product is expected to grow 8.5percent this year, up from 6.9 percent during the globalpercent this year, up from 6.9 percent during the global

financial crisis.financial crisis.

Currently, India represents just 0.8 percent of thisCurrently, India represents just 0.8 percent of thisregion's overall trade, compared with China's 7.7 percentregion's overall trade, compared with China's 7.7 percentshare.share.


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Exports form an important part of theExports form an important part of theIndian SME sector, with over 65 per centIndian SME sector, with over 65 per centof production catering to the exportof production catering to the exportmarkets. Indian SMEs need to lookmarkets. Indian SMEs need to lookbeyond the U.S., U.K., and the Europeanbeyond the U.S., U.K., and the Europeanmarkets and LAC could be a key market tomarkets and LAC could be a key market to

strengthen their position.strengthen their position.


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Brazilian companies are seeking IndianBrazilian companies are seeking Indiansuppliers of auto parts and are alsosuppliers of auto parts and are alsoseeking possibilities of collaboration forseeking possibilities of collaboration forjoint production.joint production.


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INITIATIVES TAKEN BY GOVT OF INDIAINITIATIVES TAKEN BY GOVT OF INDIA

IndiaIndia MercosurMercosur Preferential Trade Agreement (PTA)Preferential Trade Agreement (PTA)--

The MERCOSUR is a trading bloc in Latin AmericaThe MERCOSUR is a trading bloc in Latin Americaestablished in 1991 and its members include Argentina,established in 1991 and its members include Argentina,Brazil,ParaguayBrazil,Paraguay and Uruguay. India signed a PTA withand Uruguay. India signed a PTA withMercosurMercosur in 2004 with an objective of promoting tradein 2004 with an objective of promoting tradeand strengthening its relationship with the memberand strengthening its relationship with the membercountries.countries.

Andean CommunityAndean Community--The Andean Community was set upThe Andean Community was set upin 1969 as ain 1969 as a subregionalsubregional organization within Latinorganization within LatinAmerica. MemberAmerica. Member countriescountries includeinclude Bolivia, Colombia,Bolivia, Colombia,

Ecuador,Ecuador, PeruPeru, and, and Venezuela. In June 2003, India andVenezuela. In June 2003, India andthe Andean Community, established a Political Dialoguethe Andean Community, established a Political Dialogueand Cooperation Mechanism to develop mutual tradeand Cooperation Mechanism to develop mutual tradeand investment relations.and investment relations.

Preferential Trade Agreement (PTA) with ChilePreferential Trade Agreement (PTA) with Chile


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Opportunities for Indian Exports in Latin America[1]

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