Taking in consideration the trading relations, Latin America has been of great importance for India. Latin America is one of the main pharmaceutical market for India; Venezuela is one of the leading exporters of crude petroleum products for India; Chile is the fourth largest trading partner from LAC region with 89% of exports comprising from the mining sector.
But is Latin America only of trading importance to India? Post-independence, both the India and Latin America had differences in opinions and ideologies. With Latin America coming under the influence and dominance of the US, India started its Non-Alignment Movement and later signing a friendship treaty with the Soviet Union.
India had a closed economy that didn’t help on the matters. Later many LAC (Latin America and Caribbean) countries joined the Non-Alignment Movement. India then supported inside the United Nations the LAC countries against US. But the most significant improvement in relationship came when Indira Gandhi, the then Prime Minister of India, visited the region in 1968. She described it as “voyage of discovery.”
Since then barriers between their relations have been lifted. India is actively engaging with Brazil through BRICS (Brazil, Russia, India, China and South Africa) and IBSA (India, Brazil, South Africa) dialogue forum.
India is working along with the Latin American countries in multi-lateral forums like the WTO to express the concerns of developing countries in an effective way. India successfully got support by Argentina and Mexico for its bid to enter as a member in NSG (Nuclear Suppliers Group).
Challenges faced by India and LAC countries in the path to improve their relations
With the increase in the amount of trade relations between LAC countries and India, there are still a lot of challenges which pull back India and LAC countries from improving their relations.
India has not made concentrated efforts to improve the relations. With Bharatiya Janta Party (BJP) coming into power, it was expected that with the vision and determination of Prime Minister of India Narendra Modi, foreign relations with Latin America would improve. But after coming into power, PM Modi attended BRICS summit in 2014 and later out of 33 Latin American countries, visited only Mexico in 2016. President Ram Nath Kovind’s trip to Suriname and Cuba and Vice President Venkaiah Naidu’s trip to Guatemala, Panama and Peru this year have tried to fill the gap. But it was enough for the starting of a significative development in the relations of India with Latin America.
Media also can play an essential role in the building up of relations between countries. On the contrary the media of both India and Latin America countries did not give much importance to the visits of national representatives of Latin American countries, since the beginning of 2015, so undermining the potential relationship budding between India and Latin America.
The Chinese factor
With China emerging as a global economy, it is getting difficult for India to ignore its neighbour. This challenge should be enough for India to strive for better relations with Latin America.
In 2017, China overtook US to become the largest export destination for the Latin American Countries. China has also announced massive infrastructure projects in the region such as the Bi-Oceanic Railway between the ports of Santos in Brazil and Callao in Peru, and the Canal project in Nicaragua. With a target of US$500 billion in trade and US$250 billion investment in the region by 2025, China is working to establish itself as the dominant economic power in the region.
China, with its growing population, has a huge demand for pulses and grains which are imported from the Latin Countries.
A possible success route for India and Latin America relations
After six editions in New Delhi, the India-Latin America and Caribbean Conclave has being scheduled in Santiago on 1-2 October 2018. The move aided in growing the profile of India in the region immensely. The Conclave plans to target and benefit the local businessmen, entrepreneurs, government representatives with an aim to provide an ongoing platform to mingle with a large Indian delegation.
The Conclave’s target is to build a collaboration, incorporating CII (Confederation of Indian Industry), the Government of India, and UN ECLAC (United Nations Economic Commission for Latin America and the Caribbean), that would deliver the required stimulus to pool together vital players and aid in shaping the future of India-LAC relations.
With India emerging as a global economy and having its trade footprints in almost of all major regions, it needs to extensively improve the relations with Latin America. Latin America still has untapped resources and market which if India can get lots of benefit if unfolds in time. Also, Latin America could support India’s bid of permanent membership in UNSC (United Nations Security Council), increasing the role and influence of India as a world global player.
Hence, India needs to act fast and smart to counteract the hegemony of the developed countries on developing countries and balance out the rival developing countries who are in a bid for monopoly.
Image credit: Flickr/ Ricardo Zettl Kalkum