Exim Bank's Study Highlights India's Trade Relations with Select countriesin Latin America & the Caribbean Region

by Shrutee K/DNS

Export-Import Bank of India (Exim Bank)'s publication on "Enhancing India’s Trade Relations with LAC: Focus on Select Countries" was released at the hands of Dr. Ignacio Bartesaghi, Director, Latin America-Asia Pacific Observatory; H.E. Mr. Rodrigo Vielmann, Vice - Minister of Foreign Relations, Government of Guatemala;  Mr. Dammu Ravi, Joint Secretary, Department of Commerce, MOCI, Government. Of India; H.E. Mr. Francisco de Rosenzweig Mendialdua, Vice-Minister of External Trade, Ministry of Economy, Government. of Mexico;  Mr. Luis Bianchi, Director, Foreign Trade, Govt. of Paraguay; and Mr. Henk Naarendorp, President, Surinamese Chamber of Commerce & Industry, on October 8, 2015 during the India- Latin America and Caribbean Conclave organised by CII in New Delhi.

The study draws attention to the fact that India's trade relations with the LAC region has strengthened in recent years, and presents opportunities to further enhance bilateral commercial relations. The study highlights that India's total trade with the LAC countries has risen more than nine-fold in the last ten years, from US$ 5.2 billion in 2005 to US$ 49.1 billion in 2014. While India’s total exports to LAC have risen from US$ 2.8 billion in 2005 to US$ 15.5 billion in 2014, depicting more than a five-fold rise during the period, India’s total imports from LAC have also risen significantly from US$ 2.4 billion to US$ 33.6 billion during the same period. As a result, India’s trade balance with LAC, which stood at a surplus of US$ 0.5 billion in 2005, has turned into a deficit in recent years, amounting to a trade deficit of US$ 18.1 billion in 2014.

To enhance exports, strategy would entail identification of major potential imports of select focus LAC markets up to 6-digit HS commodity code, keeping in view India’s global export capability. Exim Bank's study identifies the potential items for India's exports to select countries in the  LAC region, which broadly include, inter alia, machinery; electrical and electronic equipment; transport vehicles; optical, photographic and medical apparatus; plastics and articles; iron and steel and its articles; rubber and articles; petroleum products; organic chemicals; meat and edible meat offal.