The Washington DC based Inter-American Development Bank (IDB) released in January a new study, “Latindia: The Future of Cooperation between India and Latin America,” which covers issues such as export destination markets, strategic business areas, global value chains, productive synergies, and opportunities for market development between the two. The report estimates that trade between India and Latin America reached USD 30 billion in 2016 (from a peak of USD 45 billion in 2013), suggesting that there is great potential for economic ties to diversify and continue to grow in the medium term. It also estimates that 50,000 local workers are employed by the approximately 200 Indian companies that operate in the region. While the prescriptions are not new, it is notable that the institution, which published its earlier report in 2010: ‘India: Latin America-s next big thing?” has revisited the economic relationship. LAC’s share in India’s total trade still remains low at 4.6 percent but up from 1.7 percent in 2000. The complexion of the relationship has changed, with higher Indian investment concentrated on services and value-added products like chemicals and pharma, unlike the Chinese which is mainly in natural resources.
March 6, 2018