Trade and Economic Engagement Plan for India, Latin American and Caribbean Countries
Recently, the External Affairs Minister also suggested a four-pillar plan for deeper trade and economic engagement.
The plan aims to double India and Latin American and Caribbean (LAC) bilateral trade to $100 billion by 2027.
The scheme is based on the following pillars –
- Diversifying supply chains.
- Sharing of resources: While LAC countries can help meet India’s growing demand for oil, gas and strategic minerals, Indian goods and services can meet the needs of the middle class in LAC countries.
- Sharing of development experiences: These include digital capabilities, health care solutions, agricultural practices, etc.
- Addressing Global Challenges: These challenges include climate change, concerns of the Global South and reform of multilateral fora.
LAC includes about 44 countries including Mexico. This group covers a wide range from the Bahamas and Mexico to Argentina and Chile.
Significance of India – LAC Relations:
- They have high potential for bilateral trade and investment,
- Good relations between India and these countries are important for promoting South-South cooperation,
- At the strategic level, the LAC area can be an important source of supply of minerals like copper, lithium etc. for India.
Steps taken by India
- Preferential trade agreements (PTAs) have been made with the Southern Common Market (MERCOSUR) and Chile.
- Lines of Credit have been extended to several countries along the LAC under India’s development partnership initiative.
- In 1997, the FOCUS Latin America and the Caribbean (FOCUS LAC) program was launched. It has been expanded from time to time.
Source – Economics Times