India-Latin America Relations: Trade, Resources, and Cooperation
July 19, 2026
Introduction
Latin America and the Caribbean (LAC) comprise 33 countries spanning South America, Central America, and the Caribbean — a region rich in natural resources, agricultural land, and biodiversity. India's engagement with LAC has deepened considerably in the last two decades, driven by trade complementarity (energy, minerals, agriculture), strategic resource security, and converging interests in multilateral forums. Yet, the relationship remains underexploited relative to its potential.
India-LAC Relationship: Evolution
Phase
Period
Character
Solidarity Era
1950s–1980s
Political alignment with Non-Aligned Movement, anti-colonialism
Neglect Phase
1990s
Focus shifted to Southeast Asia (Look East); LAC engagement minimal
Rediscovery
2000s
Trade and commercial engagement; focus on energy security
Trade Deficit: ~$35 billion (heavily skewed by oil and gold imports).
Top Trading Partners in LAC
Country
Trade Volume
India's Imports
India's Exports
Brazil
~$15 billion
Crude oil, gold, soya oil
Diesel, pharma, chemicals
Mexico
~$8 billion
Crude oil, copper
Textiles, cars, pharma
Colombia
~$5 billion
Crude oil, coal
Pharma, chemicals, vehicles
Chile
~$4 billion
Copper, lithium, wine
Pharma, steel, textiles
Argentina
~$4 billion
Vegetable oils, soybeans
Machinery, pharma, fuels
Venezuela
~$3 billion
Crude oil (declining)
Pharma, food
Peru
~$3 billion
Copper, zinc, gold
Pharma, machinery
Guyana
~$2.5 billion
Crude oil (growing)
Pharma, infrastructure
Key Trade Agreements
Agreement
Year
Coverage
India-Mercosur PTA
2009 (revised 2017)
450+ product lines tariff reduction
India-Chile PTA
2007 (expansion under negotiation)
1,400 product lines
India-Colombia Trade Agreement
Under negotiation
Expected comprehensive FTA
India-Peru FTA
Under negotiation
Feasibility study completed
India's Imports from LAC: Strategic Significance
Resource
Source
Strategic Importance
Crude Oil
Venezuela, Brazil, Colombia, Mexico, Guyana
Diversification away from Middle East
Lithium
Chile, Argentina, Bolivia
Critical for EV battery manufacturing
Copper
Chile, Peru
Infrastructure, electronics, defence
Gold
Peru, Brazil, Chile
India is world's top gold consumer
Soybean/Veg Oils
Brazil, Argentina
India's edible oil import dependence
Fertilisers
Various
Potash from Chile; DAP from LAC
Pulses
Canada (indirect)
LAC emerging as alternative source
Investment and Energy
Indian Investments in LAC
Energy: ONGC Videsh has assets in Brazil, Colombia, Venezuela, Guyana.
Agri-business: ITC, Jain Irrigation, and other companies in Brazil, Argentina.
Pharma: Sun Pharma, Dr. Reddy's, Aurobindo have manufacturing in Mexico and Brazil.
IT/Software: TCS, Infosys, Wipro have delivery centres in Brazil, Mexico, Argentina.
Renewable Energy: Indian companies investing in solar and wind in Chile, Brazil.
Mining: Coal India, NMDC exploring opportunities.
Latin American Investments in India
Brazil: Vale (mining, though exited), EMBRAER (defence/aviation).
Mexico: Auto parts, electronics, telecom (Claro, América Móvil).
Strategic Resources: Lithium Triangle
Country
Lithium Reserves (tonnes)
Global Rank
Key Projects
Chile
9.3 million
2nd
Atacama Salt Flat (SQM, Albemarle)
Argentina
2.7 million
4th
Cauchari-Olaroz, Olaroz, Rincon
Bolivia
21 million (largest)
1st
Uyuni Salt Flat (underdeveloped, political challenges)
India's Lithium Strategy: KABIL (Khanij Bidesh India Ltd) actively exploring lithium blocks in Argentina and Chile.
Battery Supply Chain: India aims to secure lithium supply for domestic cell manufacturing (PLI ACC scheme).
Defence and Security Cooperation
Cooperation Area
Details
Naval Exercises
IBSAMAR (India-Brazil-South Africa) — biennial
UN Peacekeeping
India and Brazil coordinate in UN missions (Haiti, DRC)
Counter-Terrorism
Joint UN platform on terrorism
Anti-Piracy
Naval coordination in Gulf of Guinea
Defence Exports
BrahMos missile interest (Philippines); light fighter export potential to LAC
Cyber Security
Joint cooperation through BRICS and UN
Multilateral Cooperation
Forum
India-LAC Dynamics
UN Reforms
Brazil and India jointly push for UNSC expansion (G4)
Climate Change
Common position on CBDR (Common But Differentiated Responsibilities)
WTO
Joint stance on agriculture subsidies and IPR waiver
COP Summits
India, Brazil, and LAC nations coordinate on climate finance
G20
India presidency (2023), Brazil presidency (2024) — continuity on global south issues
IBAS
Trilateral fund for development projects
Challenges
Challenge
Details
Geographical Distance
15,000+ km; limited direct shipping and air connectivity
Cultural/Language Barrier
Spanish, Portuguese vs English; limited institutional linkages
China's Dominance
China is LAC's #2 trading partner ($500+ billion); BRI infrastructure
Trade Imbalance
India's large trade deficit; constrained by limited export basket
Stability Concerns
Political volatility (Venezuela, Bolivia, Peru, Argentina) affects predictability
Limited FTAs
Only PTAs with Mercosur and Chile; no comprehensive FTAs
Logistics
Shipping takes 30–45 days; no direct shipping routes from West Coast
Indian Diaspora in LAC
Country
Diaspora Size
Character
Suriname
~150,000
Descendants of indentured labourers (largest % of population)
Guyana
~300,000
Descendants of indentured labourers
Trinidad & Tobago
~450,000
Significant political and economic influence
Martinique, Guadeloupe
~50,000
French territories
Panama
~15,000
Professionals, traders
Brazil
~5,000
Professionals (IT, pharma)
Total
~1 million
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Conclusion
India-Latin America relations have transitioned from political solidarity to commercially-driven strategic engagement. The region is critical for India's resource security — oil, lithium, copper, fertilisers, and vegetable oils. Institutional mechanisms (FOCUS LAC, IRSA) and trade agreements (Mercosur PTA) provide a framework, but the relationship remains below potential. Bridging the distance — through more FTAs, direct shipping, cultural exchanges, and investment — is essential. IBAS, BRICS, and G20 platforms also offer channels for strategic alignment.
UPSC Relevance
GS Paper 2: International Relations — India and Latin America