Why is Latin America important for India?
- In 2016-17, India exported more to Mexico ($3.5 billion) than to neighbours such as Thailand ($3.1 billion), Myanmar ($1.7 billion) and Iran ($2.4 billion) or traditional trade partners Russia ($1.9 billion) and Canada ($2 billion).
- India’s trade with the Dominican Republic ($900 million) was more than the trade with Portugal, Greece and some other European countries.
- India beat China in export of pharmaceuticals to Latin America. India’s exports were $651 million in comparison to China’s $404 million in 2016. In fact, in the last five years, India has been exporting more pharma to Latin America than China.
What is Pacific Alliance?
- The Pacific Alliance is a Latin American trade bloc, formed by Chile, Colombia, Mexico and Peru, which all border the Pacific Ocean.
- These countries have come together to form an area of integration with the purpose of ensure a complete freedom in the movement of goods, services, capital, and people.
What is India’s Role in Pacific Alliance?
- India enjoys an observer status at the annual summit of Pacific Alliance
- A key area for collaboration for PA and India could be understanding the impacts of El-Nino and its common approach against this weather pattern. Countries dependent upon agriculture and fishing, particularly those bordering the Pacific Ocean, are the most affected by El-Nino. All PA states have coasts along the Pacific.
- PA is turning out to be an integrated market and it opens up opportunities for India in SMEs sector, trade facilitation, science & technology innovation and export of Indian pharmaceutical products.
- The Indian elephant has already engaged the tigers of Asia. It is now the turn of the pumas of the Pacific . (Can be used in conclusions of answers)
Conclusion
- A combination of government initiatives and private ventures and diplomatic engagements have to be increased if we have to realise the full potential of India-LAC ties.