An overview of pacts between Indian And Latin American countries

Trade between Latin America and China has been a symbol of strengthening ties between developing economies, but India, too, is now looking to increase its footprint in the region. More and more Indian companies are looking to do business in Latin America as they seek exposure to growing markets. Like those of its Asian neighbours, Indian companies are seeing Latin America as a more secure investment destination, thanks broadly to stable government and economic policies. These markets are also increasingly becoming a potential lifeline as India deals with food shortages and droughts.

Indian companies have invested around $9 billion in Latin America during the last several years, according to Rengaraj Viswanathan, India’s ambassador to Argentina and that number is just going to keep on growing.

India’s recent transformation from an exporter into an importer of sugar, thanks to rapidly rising domestic consumption, has caused many companies to look outside the country in order to maintain supplies. Ethanol, too, is growing in importance as some Indian states have set mandatory guidelines on ethanol in the fuel supply.

It is a similar case for edible oils, where demand is outstripping domestic production, which has aroused interest of many Indian companies to look for land in Uruguay and Argentina to begin growing cash crops.

Facilitating this move by Indian companies is a bigger push toward developing trade agreements. Chilean and Indian authorities took a big step toward a free-trade agreement when they agreed last month to a preferential trade agreement, making Chile India’s first trade partner in Latin America.

Colombia also has signed a treaty for protection of investment with India to support development of a series of economic sectors[1].

In the IT sector,  Patni Computer Systems , a leading global IT and BPO services provider, will host a ribbon-cutting ceremony Friday, March 12, to unveil a new state-of-the-art IT business centre in Queretaro, Mexico, that will expand Patni’s global delivery initiative and serve as the hub of the company’s expansion efforts in Latin American markets.

The company has plans to increase employment in the local facility, to 200 by the end of 2010, with the bulk of the new hires coming from the local area. The location offers Patni preferential access to customers in North and South America and within Mexico, the world’s 13^th largest economy with an IT market of $5 billion. Customers will be able to leverage a “near-shore” engagement model, allowing for seamless interaction on IT development projects, easier management of customer relationships and greater oversight on project tracking. This move will allow Patni to serve an increasing demand from clients in North America and Latin America for near-shore resources and have plans to use the Patni Queretaro facility as the launching point for their business activities within the country and the region. (Source: Patni Mexico.)

India-Brazil-South Africa (IBSA) Dialogue Forum- 3^rd Summit at Delhi[2]

The Prime Minister of India, H.E. Dr Manmohan Singh, the President of Brazil, H.E. Mr. Luiz Inácio Lula da Silva, and the President of South Africa, H.E. Mr. Kgalema Petrus Motlan

References