India–Latin America relations are relations between India and the countries of Latin America. Trade is the main factor in India-Latin America relations.[1] Latin America is India's fifth-biggest trading partner (if treated as one country).[2]
History
Pre-21st century
Before India's independence in 1947, contact between India and Latin America was minimal. A few Indians came into Latin America during this time period due to the trans-pacific slave trade.[3]
In the first 50 years after India's independence, ties between India and Latin America remained minimal;[4] India's participation in the Non-Aligned Movement and the British Commonwealth, as well as its geographical distance from Latin America,[5] separated it from the region. As recently as 1992, Indo-LAC (Latin America and the Caribbean) trade was worth less than $500 million.[6] However, India did provide support in UN votes to Latin American countries in their conflicts with America, resulting in reciprocal support,[7] and the Indian diaspora in LAC (such as the Indo-Caribbeans) was one of the factors providing a connection between India and Latin America throughout this time.[8]
21st century
In the 21st century, India-Latin America relations have increased significantly.[9] In 1996, as India and Latin America were taking steps to liberalize their economies, India started a "Focus LAC" policy.[10] In recent years, India has sought to improve relations with Latin America as part of its overall desire to be a leader on the world stage.[11] Latin America for its part has sought stronger ties with India as it has moved from a Western-oriented foreign policy in previous centuries to a more multipolar approach.[12] In 2012, the first India-CELAC (Community of Latin American and Caribbean States) summit was hosted in New Delhi.[13]
India signed a Preferential Trade Agreement (PTA) with Mercosur in 2004.[14] Peru, Chile and Colombia have expressed interest in signing or have expanded their PTAs with India in recent decades.[15] India-Latin American trade peaked at $50 billion in 2022,[2] and is projected to reach $100 billion by 2027.[16] Latin America receives 1/3rd of India's car exports,[17] while India seeks energy and food security through Latin America,[18] with half of Latin America's exports to India being commodity-based.[19] Weak transport capability and above-average tariffs are said to be significant factors holding India-Latin America trade back.[20]
India and China are sometimes analyzed as competing for engagement with Latin America;[12][21][22] Indian FDI in the region is around $12-16 billion, while Chinese FDI is worth $159 billion,[23] with the Chinese having had a longer involvement in the region.[24]
^Ross, Cesar (December 2013). "India, Latin America, and the Caribbean during the Cold War". Revista Brasileira de Política Internacional. 56 (2): 23–44. doi:10.1590/S0034-73292013000200002.
^Domínguez, Jorge I. (2 October 2023). "India-Latin America Relations, 2000-22: Their Encounter and Shared Gains". Diplomacy & Statecraft. 34 (4): 777–799. doi:10.1080/09592296.2023.2270318.
^Destradi, Sandra; Küssner, Eva (2013). Go South! India “Discovers”: Africa and Latin America. GIGA Focus International Edition. Vol. 4. Hamburg: GIGA German Institute of Global and Area Studies - Leibniz-Institut für Globale und Regionale Studien.