India has a strong trade partnership with 13 Latin American and Caribbean (LAC) countries as total exports were valued at US$16.06 billion in 2022-23 with products such as nuclear reactors, pharmaceutical products, electrical machinery, and organic chemicals have high export potential says research study by a leading Indian think tank.
During the same period India’s the imports from these countries are relatively more i.e. US$ 20.87 billion.
“The pattern of India’s trade with 13 Latin American and Caribbean LAC countries (Argentina, Brazil, Chile, Colombia, Ecuador, Guatemala, Guyana, Panama, Costa Rica, Nicaragua, Peru, Bolivia and Jamaica) show that India’s total exports to these 13 countries are US$16.06 billion in 2022-23 whereas the imports from these countries are relatively more i.e. US$ 20.87 billion, thus resulting in a trade deficit amounting to US$ (-) 4.8 billion in 2022-23,” says research study by PHD Chamber of Commerce and Industry.
India’s export and import basket with these 13 LAC countries is highly skewed towards selected commodities only.
The average share of India’s top 10 exports in India’s total exports to these 13 countries approximates around 53.6% in 2022-23. Whereas the average share of top 10 imports in India’s total imports from these 13 countries is around 96.89% in 2022-23.
It noted that eight products are identified as India’s potential export commodities as these are exported to majority of 13 LAC countries including vehicles other than railways, nuclear reactors, pharmaceutical products, electrical machinery, organic chemicals, iron and steel, rubber articles and miscellaneous chemical products.
Further it says, seven products are identified where India has high import dependence on 13 LAC countries including iron and steel, nuclear reactors, aluminum articles, articles of wood, ores, slag and ash, natural pearls and mineral fuels and oils.
According to the study there are few Latin American and Caribbean countries such as Guatemala, Panama Republic, Costa Rica, Nicaragua, Jamaica and Guyana where India has consistently trade surplus for the last five years (from 2018-19 to 2022-23).
It further point out that there are other LAC countries where India has trade deficit for the last five years from 2018-19 to 2022-23 Argentina, Peru, Bolivia and Chile (except 2020-21). India’s trade surplus with Colombia and Ecuador has turned into trade deficit in the last two/three years. Trade deficit with Brazil has turned into trade surplus and it is on significant rise for the last four years.