India and Chile expanded PTA operative from 16 May
Under the expanded PTA, signed in September 2016, 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.
Brazilian steel maker Gerdau selling its India plant - May 2017
According to news reports Gerdau is in advanced negotiations to sell the control or create a joint venture for SJK Steel Plant in India. Gerdau holds 91.3% of the mill, which can produce up to 300,000 tonnes a year. The plant is located in AndhraPradesh
India beats China in Pharma exports to Latin America
India exported 651 million dollars of pharmaceutical products to Latin America as against China's 404 million in 2016. India has consistently beaten China in the last five years in pharma exports to Latin America
India's global export of pharmaceuticals are double that of China. In 2016, India's exports were 13 billion dollars, as against Chinese exports of 7 billion. India is the tenth largest pharma exporter in the world while China's rank is 16th. billion dollars while Chinese exports to US were just 1.1 bn in 2016.
India is the fourth largest supplier of pharma to US with 5.1 India leads China in exports to European Union as well. In 2016, India's exports were 1.56 billion dollars as against China's 1.36 billion. Even in Africa, where the Chinese have spoiled the market with massive credit and some non-transparent practices, India's exports to Africa were 2.8 billion dollars as against 618 million of China in 2016.
The success of the pharma exports should be an inspiration for Indian exporters of other manufactured products who complain about and suffer from Chinese competition.
India-Peru FTA negotiations to start in July in Lima
It has been agreed that the first round of negotiations would be held in Lima in July. Indian companies can give their inputs for promotion or protection of their interests can submit them to the Commerce Ministry.
ZeeTV enters Latin America - April 2017
Zee TV has started a new Spanish channel ZeeMundo with Bollywood movies for Latin American viewers. To start with, it will be available in Mexico and Ecuador. Coverage will be expanded to other Latin American countries soon. ZeeMundo is already available in US for the hispanic audience.
Zindagi channel shows Brazilian soap opera- April 2017
Zindagi channel of India has started telecasting in April 2017 a Brazilian soap opera" Total Dreamer" ( totalmente demais) which runs into 175 episodes. This is a Globo TV production telecast in Brazil in 2015-16
Latin American GDP to grow by 1.1% in 2017
Latin America is projected to have a GDP growth of 1.1% in 2017, according to the 24 April report of the UN Economic Commission for Latin America and Caribbean (ECLAC). This latest growth estimate is less than the prediction of 1.3% in ECLAC's December 2016 report.
South America is expected to have a low growth of 0.6% while Central America will have a higher rate of 3.6%. Dominican Republic will be the region's growth champion in 2017 with 5.3%, followed by Panama at 5.2%, Nicaragua at 4.6% and Bolivia-4%.Venezuela is likely to suffer yet another economic contraction at 7.2% in 2017. Brazil , the biggest economy faces internal problems while Mexico, the second biggest faces external challenges.
Peru and Colombia are the countries which show promise of higher growth. Being a larger market, Colombia should be considered as the best opportunity for business in the region.
More in my blog
Wipro has acquired a Brazilian company InfoServer (in April 2017)
InfoServer provides custom application development and software deployment services especially for banks. Approximate cost of this acquisition 9 million dollars.
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
Lenin's Ecuador victory lifts the Leftist spirit in Latin America
Lenin Moreno (popularly called as Lenin), the leftist candidate has won the Presidential run-off elections of Ecuador on 2 April, beating his rightist rival Guillermo Lasso, a wealthy banker.
Moreno's victory is being celebrated by the Latin American Left which had lost power to the right in Argentina and Peru in the recent elections. In Brazil and Paraguay, the rightists have brought down the leftist Presidents through constitutional coups. There is talk of 'retreat of the left' and 'fading of the pink tide' in the region. Against this background, the victory in Ecuador has come as a moral boost to the Left in the region and a relief and hope for those frustrated with the rise of the right-wing extremism in Europe, US and some other parts of the world.
The credit for the victory goes to the the exemplary performance of the leftist Rafael Correa's government in the last ten years. Correa has pulled the country out of its economic mess and chronic political instability of the past and strengthened the democracy with inclusive economic growth.
More in the article published today in The Wire..
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.
Essar sells off its BPO arm Aegis which had centres in Argentina and Costa Rica - April 2017
Aegis had the largest Indian BPO in Argentina employing 5000 staff, besides a smaller one in Costa Rica. Essar has announced that it was selling Aegis for 300 million dollars to a private equity firm from Singapore and exit the BPO business
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/
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.
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
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
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