Throw light on opportunities and challenges involved in India's trade with Latin American and Caribbean countries.
Latin America and Caribbean region is seen as a sea of opportunity. India can encash from this sea of opportunities to benefit from its demographic dividend.
Opportunities for India in Latin American and Caribbean countries
- Latin American and Caribbean countries have huge tracts of fertile land. They can aid India in addressing food inflation in the items like pulses, sugar.
- Latin America provides for huge market for Indian pharmaceutical sector and India is already a largest exporter of pharmaceuticals to the region.
- India is aiming to be an exporter of defence arms and equipments and the region provides enormous opportunities. India has authorized the sale of Brahmos missiles for the region.
- India is looking for diversification of its energy sources. The region with rich energy resources can aid India in ensuring its energy security.
- India’s expertise in IT, service industry, culture of education and innovation provides large opportunities for collaboration.
- Latin America can aid India in its International solar alliance and clean energy initiatives as it has one of the cleanest energy mix.
- Geographical distance has become a barrier for greater trade and commerce.
- Lack of direct connectivity between India and the region has reduced the avenues of trade and commerce.
- Increasing presence of china in the region and the need to compete with Chinese trade.
Both India and Latin America have undergone fundamental transformations and are moving forward in a stable and predictable trajectory of growth and prosperity. This south-south cooperation can provide windfall gains to both India and the Latin American regions.