Explore opportunities in Latin America: Scindia
April 29th, 2010 - 8:06 pm ICT by IANSNew Delhi, April 29 (IANS) Indian companies should vigorously explore Latin America, especially the MERCOSUR countries, set up joint ventures and even consider mergers and acquisitions as these South American nations are poised to become global agriculture outsourcing hubs, Minister of State for Commerce and Industry Jyotiraditya Scindia said Thursday.
“Indian technology and Latin American natural and social capital make a great fit. There is also great cultural compatibility between the people of the two regions which makes joint ventures and mergers and acquisitions sustainable business propositions,” Scindia said, inaugurating the two-day 4th CII India-Latin America and Caribbean Conclave here.
Scindia said India is a big potential market for agro-processed foods made in Latin American countries. Brazil is seemingly focused on tapping this opportunity although the logistics challenges are there to be tackled.
The MERCOSUR bloc comprises Brazil, Argentina, Uruguay and Paraguay. It has Chile and Bolivia as its associate members. It has become a successful market of about 200 million people, representing about $1 trillion of GDP and $190 billion of trade. It is the fourth largest integrated market after the European Union (EU), North American Free Trade Agreement (NAFTA) and ASEAN.
India signed a preferential trade agreement (PTA) with MERCOSUR in 2004 to promote trade by granting reciprocal fixed tariff preferences with the ultimate objective of creating a free trade area.
Scindia also said India should explore opportunities in other Latin American and Caribbean (LAC) markets and broaden its export product portfolio.
“Even within the LAC region, the bulk of the Indian exports go to Brazil while several other major countries like Mexico, Argentina, Peru, Chile and Uruguay account for only a fraction of total Indian imports in the region,” he said.
India exports light engineering, pharmaceuticals and mineral products to the region, “but they do not represent the strengths and capabilities of the Indian economy in its entirety”, he said.
Compared to a meagre 0.5 percent growth in the developed markets, the emerging markets are expanding at a four percent rate.
Liliana Perez, Secretary General, Colombian foreign affairs ministry, said the Colombian government was holding talks with India on signing a double taxation avoidance agreement that would boost India-Colombia economic relations.
She also emphasised the need for a free trade agreement.
- Latin America beckons, India's trade may reach $50 bn by 2014 - Jan 02, 2012
- Argentina buys Indian pharma products worth $200 million - May 04, 2011
- Updated India-Mercosur PTA on agenda: Uruguayan envoy - Apr 30, 2011
- India-Latin America meet to consider $10.39 billion deals - Apr 27, 2010
- Enough scope for enhancing India, Uruguay economic cooperation: Anand Sharma - Feb 24, 2011
- India's exports to Latin America, Africa cross $20 bn - Dec 07, 2009
- Brazil sets auto export quotas for Mexico - Apr 05, 2012
- India-South America trade deal to be expanded - Sep 03, 2010
- Uruguay wants India to set up full mission at Montevideo - Apr 30, 2010
- Scindia heads Indian business team to Uruguay, Argentina - Apr 27, 2011
- India mulling free trade pacts with African countries - May 15, 2012
- India, Brazil, South Africa to hold meet for enhancing trade - Oct 19, 2011
- Brazil's vehicle imports went up in 2011 - Jan 12, 2012
- India, Peru cooperation can boost two-way trade: Scindia - Sep 08, 2010
- China's trade with Latin America grew in 2011 - Apr 18, 2012
Tags: business propositions, export product, global agriculture, india exports, indian exports, indian imports, indian technology, jyotiraditya scindia, lac region, latin american countries, light engineering, mercosur countries, mergers and acquisitions, mineral products, north american free trade agreement, north american free trade agreement nafta, peru chile, potential market, processed foods, tariff preferences