India–Latin America relations explained

India–Latin America relations are relations between India and the countries of Latin America. Trade is the main factor in India-Latin America relations.[1] Latin America is India's fifth-biggest trading partner (if treated as one country).[2]

History

Pre-21st century

Before India's independence in 1947, contact between India and Latin America was minimal. A few Indians came into Latin America during this time period due to the trans-pacific slave trade.[3]

In the first 50 years after India's independence, ties between India and Latin America remained minimal;[4] India's participation in the Non-Aligned Movement and the British Commonwealth, as well as its geographical distance from Latin America,[5] separated it from the region. As recently as 1992, Indo-LAC (Latin America and the Caribbean) trade was worth less than $500 million.[6] However, India did provide support in UN votes to Latin American countries in their conflicts with America, resulting in reciprocal support,[7] and the Indian diaspora in LAC (such as the Indo-Caribbeans) was one of the factors providing a connection between India and Latin America throughout this time.[8]

21st century

In the 21st century, India-Latin America relations have increased significantly.[9] In 1996, as India and Latin America were taking steps to liberalize their economies, India started a "Focus LAC" policy.[10] In recent years, India has sought to improve relations with Latin America as part of its overall desire to be a leader on the world stage.[11] Latin America for its part has sought stronger ties with India as it has moved from a Western-oriented foreign policy in previous centuries to a more multipolar approach.[12] In 2012, the first India-CELAC (Community of Latin American and Caribbean States) summit was hosted in New Delhi.[13]

India signed a Preferential Trade Agreement (PTA) with Mercosur in 2004.[14] Peru, Chile and Colombia have expressed interest in signing or have expanded their PTAs with India in recent decades.[15] India-Latin American trade peaked at $50 billion in 2022, and is projected to reach $100 billion by 2027.[16] Latin America receives 1/3rd of India's car exports,[17] while India seeks energy and food security through Latin America,[18] with half of Latin America's exports to India being commodity-based.[19] Weak transport capability and above-average tariffs are said to be significant factors holding India-Latin America trade back.[20]

India and China are sometimes analyzed as competing for engagement with Latin America;[21] Indian FDI in the region is around $12-16 billion, while Chinese FDI is worth $159 billion,[22] with the Chinese having had a longer involvement in the region.[23]

See also

Further reading

Notes and References

  1. Book: Seshasayee, Hari . The ebb and flow of India-Latin America ties : exploring opportunities with Colombia . 2020 . ALADI.
  2. Web site: Redrawing India-Latin America Relations in the 21st Century . 2024-05-17 . orfonline.org . en.
  3. Web site: The First Asians in the Americas: A Transpacific History Center for the Humanities at Tufts Tufts University . 2024-05-18 . humanities.tufts.edu.
  4. Web site: India and Latin America: Distant Acquaintance, Rhetorical Solidarity, Strategic Engagement . 2024-05-18 . academic.oup.com.
  5. Web site: Desai . Ronak D. . A New Era For India-Latin America Relations? . 2024-05-18 . Forbes . en.
  6. Web site: India and Latin America Trade - Economic Ties Latin America and India . 2024-05-17 . Americas Quarterly . en-US.
  7. Ross . Cesar . India, Latin America, and the Caribbean during the Cold War . Revista Brasileira de Política Internacional . December 2013 . 56 . 2 . 23–44 . 10.1590/S0034-73292013000200002 . free .
  8. Web site: Krishnankutty . Pia . 2023-11-27 . How India is boosting its strategic & economic ties with distant Latin America, Caribbean . 2024-05-17 . ThePrint . en-US.
  9. Domínguez . Jorge I. . India-Latin America Relations, 2000-22: Their Encounter and Shared Gains . Diplomacy & Statecraft . 2 October 2023 . 34 . 4 . 777–799 . 10.1080/09592296.2023.2270318 .
  10. Katju . Vivek . Viswanathan . R . Heine . Jorge . Latin America and the Caribbean: next step for India . Indian Foreign Affairs Journal . 6 . 1 . 2011 . 1–27 . .
  11. Seshasayee . Hari . Redrawing India-Latin America Relations in the 21st Century . 19 April 2023 .
  12. Web site: India vs. China in Latin America: Competing Actors or in Separate Leagues? . 2024-05-17 . thediplomat.com . en-US.
  13. Destradi . Sandra . Küssner . Eva . Go South! India 'Discovers': Africa and Latin America . 2013 .
  14. Web site: Mishra . Shashank Mattoo,Ravi Dutta . 2023-04-13 . India, Latin America in talks to expand preferential trade agreement . 2024-05-17 . mint . en.
  15. Web site: India and Latin America: Where ignorance is not bliss . 2024-05-17 . orfonline.org . en.
  16. Web site: 'India from Latin America' takes a fresh look at India's economic development . 2024-05-17 . The Week . en.
  17. Web site: Record trade of Latin America with India, but mainly commodities for industrial goods . 2024-05-17 . MercoPress . en.
  18. Web site: 2023-04-19 . Latin America and India add value to each other in business and beyond… . 2024-05-18 . Financialexpress . en.
  19. Book: Destradi, Sandra . Go South! India “Discovers”: Africa and Latin America . Küssner . Eva . 2013 . GIGA German Institute of Global and Area Studies - Leibniz-Institut für Globale und Regionale Studien . GIGA Focus International Edition . 4 . Hamburg . en.
  20. Web site: IDB New IDB study calls for more trade, cooperation between India and Latin America . 2024-05-17 . www.iadb.org . en.
  21. Web site: Latin America and the Asian Giants . 2024-05-17 . Brookings . en-US.
  22. Web site: What's Ahead for India and Latin America? . 2024-05-17 . Americas Quarterly . en-US.
  23. Book: Paladini, Stefania . Asian Worlds in Latin America . 2015-12-22 . Routledge . 978-1-317-33383-8 . 0 . en . 10.4324/9781315659367.

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