India- Latin America
Context:
During Chile’s Foreign Minister’s three-day visit to India, Alberto van Klaveren met with External Affairs Minister S. Jaishankar expressed Chile’s interest in deepening ties with India and acknowledged India’s broader interest in enhancing relations with Latin America.
India- Latin America Historical Relations:
- Phase -1 – 1947-1990s:
- Limited Engagement: India’s focus was primarily on Africa and Asia.
- Multilateral Support: India supported Latin American nations in UN forums against U.S. interventions.
- Non-Alignment Policy: During the Cold War, India viewed Latin America as within the U.S. sphere of influence.
- Economic Reforms and Outreach (1990-2014)
- “Look West” Policy complemented the “Look East” policy with a focus on Latin America.
- “Focus LAC” Program to boost economic engagement with Latin America
- Modi Era and Renewed Focus (2014-Present):
- Strategic Partnerships: India aimed to strengthen ties with key countries like Brazil, Mexico, Argentina, and Colombia.
Importance of Latin America for India:
Economic Importance
- Trade and Investment: India’s total trade with Latin America in FY 2023-24 was approximately $42.9 billion.India’s exports to Latin America amounted to about $19.15 billion.
- Key sectors for Indian investments in the region include IT, pharmaceuticals, and infrastructure.
- Access to Natural Resources: Latin America is a vital source for minerals like copper, lithium, iron ore, gold, and silver.
- Food Security: With its vast agricultural land and lower population density, Latin America can support India’s food security by providing essential agricultural products such as pulses and oilseeds.
- Energy Security: Latin America supplies about 15% of India’s crude oil imports.
- The region’s significant oil reserves and partnership in initiatives like the International Solar Alliance make it crucial for India’s energy strategy.
Strategic Importance
- Global Ambitions: Latin America is key to India’s aspirations for a permanent UN Security Council seat, entry into the Nuclear Suppliers Group (NSG), and influence in global negotiations on climate change, terrorism, and trade.
- Multilateral Cooperation: India collaborates with Brazil in BRICS and IBSA, offering developing countries alternative platforms and reducing reliance on Western institutions.
- Countering Chinese Influence: India’s growing, albeit modest, presence in Latin America is welcomed, offering a long-term strategic advantage over China.
Geopolitical Importance
- Assertive Foreign Policy: Latin America’s support for a multipolar world and multilateralism aligns with India’s goals to enhance its global stature.
- Leveraging Diaspora: The Indian diaspora in Latin America, approximately 1 million strong, along with the influence of yoga, Bollywood, and cricket, strengthens cultural ties.
- India is strengthening ties with CARICOM countries(a regional organisation comprising 15 Caribbean nations).
- Shipping Routes: Strategic partnerships with countries like Panama and Mexico are crucial for securing shipping routes vital for trade and energy security.
Challenges in deepening its engagement with Latin America:
- Lack of Comprehensive Engagement Mechanism: India has yet to establish a mechanism for engaging with Latin America as a whole or with its sub-regional groups like SICA, the Pacific Alliance, and CELAC.
- Limited Trade Agreements: Latin American nations are eager to upgrade PTAs to FTAs, but India has not shown significant interest.
- China’s Influence: China’s role in Latin America is driven not only by economic and strategic considerations but also by political ideology.
- The left-leaning administrations in many Latin American countries, such as Brazil, find greater affinity with China, expanding Beijing’s sphere of influence in the region. This presents a challenge for India as it seeks to counterbalance China’s growing presence.
Growing China – Latin America Relations and Implications for India: Economic Competition Strategic Implications
