India aims to double trade with Latin America region

India is aiming to significantly boost trade with the Latin America and Caribbean (LAC) region. Union Commerce Minister Piyush Goyal announced plans to double trade volumes in the next five years. He highlighted the potential for economic collaboration and the importance of cultural ties between the regions. During a speech at the 10th CII India-LAC Conclave in New Delhi, Goyal explained that deeper economic cooperation is based on shared traditions and interests in areas like festivals and sports. The conclave serves as a platform to strengthen trade relationships and improve people-to-people connections. Goyal emphasized the need for preferential trade agreements, particularly with the Mercosur trade bloc in South America. Mercosur includes Argentina, Brazil, Paraguay, and Uruguay, and promotes economic integration among its members. India is also negotiating free trade agreements with Chile and Peru to enhance bilateral trade. The minister called for collaboration in renewable energy, focusing on lithium processing and electric mobility. Given LAC's rich lithium reserves, India sees this as an important area for cooperation. There is also ongoing collaboration with Brazil for biofuels, specifically for ethanol-powered vehicles. India's trade with the LAC region has fluctuated in recent years. In fiscal year 2022, India exported $14.9 billion and imported $21.7 billion from the region. In fiscal year 2023, trade grew, with exports rising to $17.6 billion. However, in fiscal year 2024, exports fell to $14.5 billion and imports dropped to $21.2 billion, largely due to supply chain issues.