Bolivia

 

 

Basic Information

 

Overview of the Market

  • population - 10 million
  • GDP - 19 billion dollars in 2008

 

  • For the first time in history, a native Indian Evo Morales was elected as President of the country in February 2006. He faces the challenge of uplifting the downtrodden of this poorest country in South America.
  • Bolivia is the smallest market in the Andean Group and its development is hindered by its landlocked position and high-altitude. The high-altitude is an advantage only in football, when the Bolivians are able to beat the visiting teams running out of breath.
  • It has large reserves of natural gas estimated at 4.6 trillion cubit feet. Exports of natural gas to Argentina and Brazil are major sources of foreign exchange earnings.
  • Bolivia has oil reserves of around 850 million barrels.
  • Bolivia has a long history and tradition of mining. It is estimated that only 10% of the potential is being mined. Bolivia is the second largest producer of tin in the world. It produces and exports gold, silver and zinc. The mining sector is receiving the second largest investment after the energy sector.
  • Bolivia has half the world´s reserves of Lithium with 5.4 million tons. The demand for Lithium is expected to increase significantly for use in Lithium batteries in the hybrid and electric cars
  • Principal exports are metals, jewellery, natural gas, soyabeans, cotton, sugar, vegetables, fresh fruits, cork and wood. Main trading partners are Mercosur, Andean Community and USA . Leather goods, textiles and garments are the main manufactures.
  • Principal crops sugarcane, cotton, soya and coca leaves.
  • Bolivia depends on facilities of sea-ports of Chile and Peru . It has free port arrangements in Brazil and Argentina .  
  • Bolivia is an associate member of Mercosur.

More info on the Bolivian market in

www.indembassy.org.pe

 

Business with India

Bilateral Trade (US $ million)

 

2000

2001

2002

2003

2004
2005
2006
2007

2008 till june

2009

 

Exports from India

 

 

3.3

 

4

 

5.2

 

6.9

 

9.5

 

16

 

20

 

12

 

31

 

Imports by India

 

 

1.4

 

3

 

1

 

1.5

 

0.3

 

3

 

3

 

2

 

3

 

 

  • Principal items of India’s exports Two wheelers and accessories, chemicals, pharmaceuticals, garments, tyres, auto parts. 
  • Principal items of India ’s imports Leather and hides, sodium Borate
  • Indian companies have shown interest in investment/joint ventures in Bolivan gas and iron ore.
  • Bolivian government wants to import tractores, agri machinery, mining equipments, machinery for processing fruits and milk,helicopters, telecom equipments etc from India.
  • India has given a 30 million dollars line of credit.

Jindal gets 2.1 billion$ project in Bolivia

The Indian company Jindal Steel and Power Ltd. signed an agreement on 18th July 2007 with the Government of Bolivia for an integrated project involving mining of iron ore and a steel plant. The iron ore will be mined from “El Mutun” which has one of the biggest reserves (40 billion tons) in the world. Jindal group will exploit 50% of the oron ore and will export about 10 million tons per year. They will put up a steel plant in Bolivia to produce 1.5 million tons of steel products. They will also put up a 450 MW gas power plant as part of the project. The investment of 2.1 billion dollars will be spread over a period of 8 years and the contract is for a period of 40 years.

The Government of Bolivia will earn 200 million Dollars annually from this project, which will generate 12000 jobs. President Evo Morales himself announced the signing of this largest investment project in Bolivia.

This is the biggest ever contract secured by an Indian company in Latin America. The fact that an Indian company has got such a big contract in a small, poor and less well known country, such as Bolivia, should now send a strong signal to the Indian corporate sector who have started looking at opportunities in Latin America in recent years. The Jindal project would also have other spin-off opportunities in railways, infrastructure, etc., for other Indian companies in Bolivia.

Jindal Steel and Power Ltd has won three oil and gas blocks 147, 153 and 159 in northern Bolovia.

Reliance has also got three oil and gas blocks.

 

Trade and Industry Contacts