Mexico has emerged as the top destination of India's exports to Latin America in 2016
Mexico has emerged as the top destination for India's exports to Latin America with a record high of 3.38 billion US dollars in 2016 (January- December).
For those Indians who think that Mexico is too far and less important for India's trade than the neighbors or the traditional trade partners, here are the statistics to open their eyes: India's exports to Mexico in 2016 are more than its exports to the neighbors such as Indonesia –3.13 bn, Thailand-2.96 bn, Iran-2.41 bn and Myanmar-1.13 bn; and more than to the traditional partners: Russia-1.81 bn, Canada-1.97 bn, Australia-2.95 bn, South Africa-3.24 bn, Spain-3.36 bn, and Egypt-2.09 bn.
While India's exports to Latin America as a whole have declined in 2016, it is heartening to note that the exports to Mexico have increased by an impressive 22 percent from last year (2.77 bn) and doubled from 1.56 bn in 2012. In Latin America, Mexico has overtaken Brazil (2.3 billion dollars) in 2016 as the largest market for India's exports.
What is even more interesting is that Mexico has emerged as the biggest market for India's vehicle exports which amounted to 1.83 bn increasing by an incredible 56% from 2015 (1.17 bn), 83 % from 2014 ( 1 bn) and from a mere 397 m in 2012.
The Indo-Mexican trade of 5.82 billion dollars in 2016 have the potential to reach 10 bn in the next five years. After Trump's trade threats, Mexico seeks to reduce its over dependence on the US market and diversify its trade with large markets such as India. This is, therefore, an opportune time for India to intensify its trade promotion with Mexico, including signing of an FTA.
More in my blog..http://businesswithlatinamerica.blogspot.in/
An edited version appears in Business Line http://www.thehindubusinessline.com/opinion/india-and-mexico-business-partnership/article9601803.ece
Trump triggers greater Latin American interest in India.
" So far…. from God but so closetoTrump", is the cry of the Mexicans these days to their patron saint, Virgin of Guadalupe, affronted by Trump's racist comments and accusation of Mexican immigrants as 'criminals, rapists and drug dealers'. Not since the American annexation of Mexican territories and the US-Mexico war in the 19th century that the Mexicans are so outraged with the Big Brother.
The Latin Americans cannot believe that the US, which preached and forced Latin American governments to open up their markets and liberalize imports in the name of "Washington Consensus", is doing exactly the opposite by resorting to protectionism.
Caught between the bullying Trump, indifferent Europe and the suspect Chinese, the Latin Americans have started looking more seriously at India, attracted by its huge and growing market as well as its vibrant and diverse democracy. This is, therefore, the right time and an unmissable opportunity for India to intensify its win-win economic partnership with Latin America.
Peru allows visa-free entry for Indian business visitors
The government of Peru announced in March 2017 that Indian business visitors holding US visas or a permanent resident status in the United States, Canada, the United Kingdom, Australia or any Schengen Statecan, can enter Peru and stay for 180 days during each visit. Mexico and some Central American countries have a similiar policy.
India's trade with Brazil declines again in 2016
India's trade with Brazil has gone down by 28 % reaching USD 5.6 billion in 2016 (January to December) from 7.90 billion in 2015 after reaching a peak of 11.4 billion in 2014. India' exports declined by 42% to USD 2.48 billion while imports went down by 12% to USD 3.16 billion from the previous year.
But the good news is that the Brazilian economy is resuming growth in 2017, the commodity prices are going up and the political situation has become better under the pro-business government of President Temer. Next year should see growth in the bilateral trade.
More in the blog http://businesswithlatinamerica.blogspot.in/
India to start negotiations for a Trade Agreement with Peru - January 2017
The cabinet of Indian government has approved the proposal to start negitiations with Peru for a Trade Agreement. This would be useful to increase the trade with Peru, the fifth largest trade partner of India in Latin America. In 2015-16, the trade was 1523 million dollars of which exports were 820 m dollars and imports 703 m.
Portal for b2b between Indian and Latin American companies
A young " passionate about Latin America" Indian living in Peru Utsav Sharan has started a portal http://www.negociomundo.com to connect Indian and Latin American companies. Companies can make use of this commendable initiative.
Another useful website is http://www.latmeco.com run from Panama
Camlin from Mumbai acquires majority control of Mexican chemical company _ December 2016
Camlin Fine Sciences from Mumbai has acquired 65% stake in Mexican chemical firm Dresen Quimica for $7.8 million. Dresen is engaged in manufacturing and distributing specialty intermediate chemical solutions used by the feed, food and other industrial products. Dresen has operations in five countries including Mexico, Guatemala, Peru, Colombia and Dominican Republic. Camlin's Brazil operations began in 2014 through their 100% subsidiary company CFS do Brasil Ltda with production of antioxidant blends for food applications.
Indian hero in Latin American film
Prabhakar from Motihari in Bihar, settled in Costa Rica since 1997 has become the hero in the Costa Rican film " Enredados: la confusion" ( Entangled: the confusion)
Latin American brand ambassadors for Indian companies
Tata Motors has contracted Argentine football star Lionel Messi while Hero Motors has contracted Argentine coach and ex-player Diego Simeone.
Peruvian company Vistony setting up plant in Rajasthan for production of lubricants - Nov 2016
Vistony from Peru is a manufacturer of lubricants, additives and coolants for automobiles. They have plants in US, Bolivia, Ecuador and Paraguay. They are in the process of establishing a production plant in Rajasthan.
Brazilian company Perto inagurates its ATM production unit in Jaipur- Oct 2016
Perto is a reputed Brazilian company which supplies ATM and related products and services globally. They have been in India for sometime and have now established a plant to make the ATMs in Jaipur.
Latin America will resume GDP growth in 2017 after the downturn in 2016
Latin America is projected to recover with 1.5% GDP growth in 2017 after the economic contraction of 0.9% in 2016. There is a tendency to blame the socialist policies of the Leftist governments in the region for the economic downturn since 2011. It is not a failure of the socialism. It is the failure of those crazy leaders who abused their power in the name of socialism. The principal reason for the downturn in South America is the drastic fall in demand and price of their commodities, caused mainly by the Chinese slow down.
Here are some positive stories to cheer up the Indian business who might feel discouraged by the negative news flowing out of Latin America:
-UPL (United Phosporous Ltd), the number one Indian agrochemical company does more business in Brazil ( over 500 million dollars) than in India. They are not deterred by the so called 'crisis' in Brazil. They have invested over 300 million dollars and are upbeat about their growth prospects in Brazil, which has got solid growth fundamentals as an Agricultural Powerhouse in the world.
-Indian pharmaceutical companies operating in Brazil have an impressive combined annual turnover exceeding 500 million dollars. Torrent alone does a business of more than 100 million dollars.
-India's exports of vehicles to Mexico have increased by 41% in the first quarter of 2016 reaching 380 million dollars from 267 million in the first quarter of 2015. They have doubled from 665 million dollars in 2013 to 1175 million in 2015.
More in my blog http://businesswithlatinamerica.blogspot.in/
Argentine IT company Globant expands its presence in India - October 2016
Globant has launched a new Development centre in Pune in October 2016. The centre will employ 1200 staff. It already has a presence in Bengaluru, where it had acquired an Indian firm Clarice Technologies.Investment of Globant in India is estimated as 25 million dollars
India and Chile sign expanded PTA on 6 September at New Delhi
Under the expanded PTA, Chile has offered concessions to India on 1798 tariff lines with Margin of Preference (MoP) ranging from 30%-100% and India has offered concessions to Chile on 1031 tariff lines at 8-digit level with MoP ranging from 10%-100%.
In the original PTA concluded in March 2006, India’s offer list to Chile consisted of 178 tariff lines the Margin of Preference (MoP) ranging from 10%-50% at 8-digit level and Chile’s offer list to India consisted of 296 tariff lines with MoP ranging from 10% - 100% at 8-digit level.
Hero Group plans to set up a motorcycle plant in Argentina September 2016
The Hero Group has made this announcement while talking about their upcoming launch of some new versions of their motor cylces in Argentina in January 2017. The group has already established a plant in Cali, Colombia.
India: Long term bet for Latin America's exports
Many Latin Americans assume that India is less important for their exports than their traditional European partners such as Germany and France. Wake up..amigos. India was the third largest destination for Latin America's exports in 2014. The region exported 29 billion dollars of goods to India, while its exports to Japan and Spain were 21 billion dollars each, Germany-17 bn, Italy and UK-11 billion each and France-8 bn. In 2015, India was the number one destination of Latin America's vegetable oil exports, third largest for crude oil and copper and the fourth for gold.
India has to increase its imports of these items in the future both globally and from Latin America in view of the of the growing gap between domestic demand and production.
Latin America has started exporting finished goods to India and using India as a base for the Asian and global markets. If Latin Americans do a serious and sustained 'Focus India' strategy similar to the successful 'Focus Latin America and Caribbean' programme of India in the last two decades, there is tremendous scope to increase their share in the imports of India, which promises to be a large long term bet for Latin America.
More in the article published by Latinvex, an online publication based in Miami
Mexico has overtaken Brazil as the largest destination of India's exports in Latin America in 2015-16
For the first time ever, Mexico has overtaken Brazil as the top destination of India's exports to Latin America. Exports to Mexico were 2.865 billion dollars in 2015-16, while the exports to Brazil were 2.65 billion.
India's trade with Latin America declined by one third to 29.7 billion dollars in 2015-16 from 43.4 billion in 2014-15. While India's exports have decreased by 27 %, the imports have also gone down by 33% to 19.7 billion from 29.3 billion in the previous year.
For those Indian businessmen who still harp on the distance factor, here are some eye-openers:
--India's exports to the remote Guatemala ( 255 million $) is more than the exports to the neighboring Cambodia (143 m). Both have populations of 15 million each.
-India's exports to Mexico (2.86 bn) are more than the exports to Indonesia (2.84 bn), Myanmar ( 1 bn), Russia ( 1.6 bn), Canada (2 bn) and Egypt ( 2.3 bn).
-India's trade with the distant Brazil ( 6.7 billion $) is more than the trade with Bangladesh (6.4 bn), Srilanka (6 bn), Russia (6.1 bn), Canada ( 6.2 bn) and Spain (4.8 bn). This is even after the 41% fall in the trade with Brazil which was 11.4 bn in 2014-15.
More…in the blog
Latin America: a growth area for Indian pharma exports
India's billion dollar pharma export to Latin America in 2015-16 is creditable in the context of the disheartening news headlines from Latin America about the Venezuelan crisis, the Brazilian presidential impeachment and the regional GDP contraction of 0.4% in 2015 which is projected to worsen to 0.6% in 2016. It is even more encouraging to know that exports to 16 out of the 20 countries have shown increase from last year.
India's pharma exports are set to continue to grow in the coming years in view of the expected recovery of the economies, the growth in pharma sales and imports predicted for the region as well as the rise in the use of generic drugs