Synergy in India’s trade relations with the Latin America and Caribbean region (LAC) can be assessed from the fact that bilateral trade has risen almost fivefold in the last five years; from $2.4 billion in 2003-04 to $11.7 billion in 2007-08, underlined by significant rise in both India’s exports to and imports from the LAC region.
Exports to Brazil, which accounted for the largest share (44%) of India’s exports to the region in 2007-08, have risen more than eightfold from $275.8 million in 2003-04 to $2.3 billion in 2007-08, primarily on account of significant exports of petroleum products, while exports to Colombia, too, have shown an impressive growth over the same period, mainly due to sharp rise in exports of petroleum products and transport equipments.
As far as imports are concerned, Chile has emerged as the leading source from the LAC region since 2006-07, on account of increased imports of matalliferous ores and metal scrap from the country.
Policy initiatives by the government of India, including the “Focus LAC” programme, preferential trade agreement (PTA) with Mercosur, an important trading bloc in the LAC region, as also a PTA with Chile, have helped create an enabling environment for promoting two-way trade flow.
Also See trends in India’s trade with the LAC region (Graphic)