Page 5 - Chemexcil NEWS August - September 2017 for web
P. 5
INDIA IS MORE IMPORTANT FOR LATIN AMERICAN
EXPORTS THAN GERMANY, UK, FRANCE, SPAIN AND ITALY
Mr. R. Viswanathan, India has become more million a year) and consumption power of the
also known as Rengaraj important as an export new middle class as well as the need for fuelling
Viswanathan, is a retired destination for Latin the high growth of the economy will continue
Indian diplomat, writer America than their their to drive the rise in imports. This Indian need is
and speaker specializing traditional European complemented by Latin America's potential to
in Latin American politics, trade partners such as export more with its ample resources.
markets, and culture. Germany, UK or France.
In 2016 Latin America Indian agriculture faces daunting challenges
exported 16.7 billion caused by the diversion of agricultural land
dollars of goods to In- for other purposes, shortage of water and low
dia while their exports productivity due to inadequate investment by
to Germany was 14.4 most farmers whose land sizes are small. On
billion, Spain-13.5bn, the other hand, South America has vast tracts
UK-10 bn, Italy-9.3 bn of fertile land, abundant water, technologies and
and France – 7.2 bn. best practices with which the region has emerged
as a global agricultural powerhouse. Besides soy
India was the sixth largest export destination and sunflower oil, the region can supply palm
for Latin America in 2016, after US, China, oil to India. Some countries in the region have
Netherlands, Canada and Japan. In 2014, India started palm plantations and exports of oil. This
was in the third rank with 29 billion dollars ahead will help India to reduce the over dependence on
of Japan, Netherlands and Canada. The main the monopoly suppliers Malaysia and Indonesia
reason for the drop in Latin American export to and bring down prices. South America has started
India in 2016 is the sharp fall in prices of oil, the exporting small quantities of pulses to India which
main Indian import from the region. is the largest importer in the world.
India is the number one destination of Latin Apart from petroleum crude, vegetable oil,
America's vegetable oil exports, the second minerals, sugar and gold, Latin America exported
largest importer of Latin American crude oil, third to India in 2016 manufactured products such as
for the region's exports of copper, fourth for gold equipments and machinery ( 432 million), iron
and also fourth for ores. and steel (227m), chemicals ( 200 m) electrical
equipments ( 173 m) and plastic products ( 172
India, as a major export market, is not a wonder m). Latin American firms are yet to explore the
of one or two years. India has emerged as a large opportunities offered by the huge investment India
and growing market for Latin American goods in is making in infrastructure including highways,
recent years and is going to continue its ranking airports, ports, power and renewable energy as
in the years to come. India has already overtaken well the huge Indian "retail revolution” which
China in GDP growth rate and is set to surpass opens possibilities for supply of value added food
China in population too. and consumer products from Latin America.
Petroleum crude, copper, gold, ores and vegetable Latin American governments and business
oil are among the top global exports of the region need to proactively explore the large long term
and at the same time these are the major imports opportunities offered by India with more business
of India from the world. India is going to increase delegations, participation in Indian trade fairs,
its imports of these items in the future both market studies and strengthening of commercial
globally and from Latin America in view of the of sections of the embassies.
the growing gap between domestic demand and
production. The increasing Indian population (15 Latin America is increasing its imports in 2017.
3 August-September-2017
