India and Chile Forge Historic Economic Partnership

 -----   by Jjuliaa Gangwani

The 10th CII India-LAC Business Conclave, held on March 19-20, 2025, in New Delhi, once again highlighted India's intent to strengthen ties with the Latin America and Caribbean (LAC) region. Hosted by the Confederation of Indian Industry (CII), the event brought together ministers, policymakers and industry leaders to deliberate on economic collaboration under the theme of "Advancing Economic Alliances for Collaborative Growth."

The conclave featured numerous international ministers, Indian ministers and representatives from several countries, marking a significant step in fostering diplomatic and business linkages between the two regions. Discussions ranged from trade diversification and renewable energy to digital transformation and sustainable development. Despite its diplomatic appeal, the dialogue revealed several challenges that need to be addressed for the partnership to realize its full potential.

Current Trade Dynamics and Persistent Barriers

India’s trade with the LAC region has grown in recent years, reaching $50 billion in bilateral trade, yet this figure pales in comparison to the potential of the two regions. Trade remains hampered by high import duties, regulatory barriers and logistical bottlenecks.

For instance, India’s tariffs on fresh food imports often exceed 50%, with rates as high as 100% on certain products. This has severely impacted LAC exporters, particularly those in agriculture and wine industries, who face steep costs when accessing Indian markets. Recently, Chilean walnut shipments were delayed at customs, sparking concerns over inefficiencies in trade facilitation and customs processes. Such barriers discourage exporters and complicate the path toward smoother economic cooperation.

Furthermore, non-tariff barriers and complex trade regulations on both sides have slowed progress in finalizing key agreements. While the conclave served as a platform for discussions, tangible steps toward resolving these issues were largely absent from the event’s outcomes.

Key Themes from the Conclave

1. Renewable Energy Partnerships
       India and LAC share a mutual interest in renewable energy. Speaking at the      inaugural session, Dr. Eduardo Martinez Diaz, Deputy Prime Minister of Cuba, highlighted the potential for collaboration in solar energy,  biofuels and wind power. Cuba’s membership in the International  Solar Alliance underscores the region’s commitment to clean energy transitions. However, experts argued that actionable investment plans and project timelines are still missing from these conversations.
2. Agri-Trade  and Food Security
       LAC nations are global leaders in agriculture and food production, but  India’s high duties on fruits, nuts and wines continue to strain  market entry. Despite this, both regions acknowledged opportunities to deepen ties in food security and agricultural trade, provided  tariff structures are revised.
3. Digital  Trade and Financial Integration
       India’s Unified Payments Interface (UPI) and other Digital Public Infrastructure (DPI) solutions were presented as models for enhancing      digital trade. While promising, there is a need to align these systems      with LAC’s financial ecosystems to ensure effective implementation.
4. SME   and Startup Participation
       A recurring theme was the importance of small and medium enterprises   (SMEs) in driving bilateral trade. Mr. Narayan Sethuramon, Co-Chairman, CII Trade Policy Council, emphasized that future  cooperation must empower grassroots businesses, startups and  entrepreneurs instead of focusing solely on large-scale corporate investments.

Voices from the Conclave

• "India  and LAC must tackle tariff and non-tariff barriers if trade is to reach      its full potential," remarked Mr. Sunil Barthwal, Commerce  Secretary. He reaffirmed India’s aspiration to double bilateral trade to USD 100 billion, while stressing the need to diversify supply chains.
• "Our  partnership should be built on food security, energy security and      environmental sustainability," said Mr. Jai Shroff, Chairman of the National Committee on LAC at CII, signaling the long-term vision for deeper collaboration.
• "Deeper logistics connectivity and inclusive technology solutions can accelerate      India-LAC ties," added Mr. R Mukundan, Vice President of  CII.

While the conclave highlighted opportunities, the absence of specific policy agreements and measurable outcomes undermined its impact. The following steps could address these gaps:

1. Simplify  Trade Procedures: Streamline customs operations to prevent incidents      like the Chilean walnut delays.
2. Lower Tariff Barriers: Review high tariffs on fresh produce, wines and dry  fruits to make trade viable for LAC exporters.
3. Action-Oriented  MoUs: Ensure that agreements, such as the MoUs signed with the      Development Bank of Latin America (CAF) and Fecomércio-GO, include follow-up mechanisms and tangible timelines.
4. Include  SMEs and Startups: Foster greater participation from smaller  businesses to diversify trade and investment opportunities.
5. Sustainability  Focus: Strengthen cooperation in renewable energy and climate-friendly  trade policies to align with global priorities.

India-LAC: A Complementary Partnership with Untapped Potential

India and LAC are natural economic partners, with complementary strengths in agriculture, energy and technology. By addressing trade barriers and fostering policy-driven engagement, both regions can unlock significant opportunities for mutual growth. The 10th CII India-LAC Conclave reiterated the importance of this relationship but also highlighted the need for decisive action to move beyond dialogue into meaningful collaboration.

As India and LAC continue to engage, embracing inclusivity, sustainability and efficiency will be critical to creating a partnership that benefits both sides while setting an example for South-South cooperation in the global economy.

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Russia's First Deputy Prime Minister Denis Manturov participated in the Russian-Indian Business Forum, which took place ahead of the 25th Session of the Intergovernmental Russian-Indian Commission on Trade, Economic, Scientific, Technical, and Cultural Cooperation. Manturov and India's External Affairs Minister Dr. S. Jaishankar engaged with representatives from Russian and Indian businesses, highlighting the strengthening bilateral relations despite external economic pressures. 

         -----by the Correspondent

Russia's First Deputy Prime Minister Denis Manturov participated in the Russian-Indian Business Forum, which took place ahead of the 25th Session of the Intergovernmental Russian-Indian Commission on Trade, Economic, Scientific, Technical and Cultural Cooperation. Manturov and India's External Affairs Minister Dr. S. Jaishankar engaged with representatives from Russian and Indian businesses, highlighting the strengthening of bilateral relations despite external economic pressures.

Manturov underscored the record trade turnover achieved last year and expressed optimism for surpassing this milestone. He emphasized diversifying trade structures to include high-tech products, aligning with Russia's technological sovereignty goals and India's "Make in India" program. Key areas of technological development in Russia include the transport industry, nuclear sector, healthcare, agriculture, and space services.

Meeting with Prime Minister Narendra Modi

Manturov met with India's Prime Minister Narendra Modi to discuss the implementation of agreements from the 16th BRICS Summit in Kazan. The discussions focused on enhancing trade, economic, investment, energy and industrial cooperation between the two nations.

25th Session of the Intergovernmental Russian-Indian Commission

Manturov and Dr. Jaishankar co-chaired the 25th Session of the Intergovernmental Russian-Indian Commission in New Delhi. Over the past five years, mutual trade volume has grown more than fivefold, with a 9% increase in the first eight months of this year. The session aimed to expand the range of goods traded and reduce trade imbalances, focusing on concluding a free trade agreement between the EAEU and India and enhancing cooperation between Russian and Indian banks.

Manturov stressed the importance of expanding direct air traffic, developing the route network and resuming flights of Indian air carriers. The meeting also highlighted bilateral cooperation in energy, engine building, microelectronics, chemistry, metallurgy, digital technologies, railway engineering and space exploration.

 Humanitarian cooperation, particularly in higher education, was also discussed, with a focus on simplifying the mutual recognition of educational documents and academic degrees.

Meeting with Finance Minister Nirmala Sitharaman

During his visit, Manturov met with India's Finance Minister Nirmala Sitharaman to discuss interbank and credit-financial cooperation and the prospects for an intergovernmental agreement on the promotion and mutual protection of investments.

Conclusion

The series of meetings and discussions during Manturov's visit to India reflect the strengthening of Russia-India relations and the commitment to furthering cooperation across various sectors. The final protocol of the 25th Session of the Russian-Indian Intergovernmental Commission was signed, marking a significant step forward in the bilateral partnership.

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          ------by the correspondent

Fruit Attraction 2024, held from October 8-10 in Madrid, achieved an all-time high in participation with 117,370 professionals from 145 countries, a 13% increase from the previous year. Organized by IFEMA MADRID and FEPEX, the event featured 2,201 exhibitors from 59 countries, covering 70,254 net square meters across 10 halls.

While the fair's growth and international reach are commendable, questions arise about its long-term impact. The increased participation of Spanish production centers, occupying 55% of the exhibition space, underscores the national significance. However, the reliance on international exhibitors, who accounted for 45% of the total occupancy, raises concerns about the sustainability of local businesses.

Innovative features like the Innova&Tech area and the Innovation Hub showcased advancements, but their practical application in driving industry-wide improvements remains uncertain. The International Guest Programme and Guest Importing Countries initiative expanded global business opportunities, yet the true measure of success will depend on the tangible outcomes and lasting industry advancements inspired by the event.

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      ----by the Correspondent

German Chancellor Olaf Scholz made a significant diplomatic visit to India to strengthen bilateral ties. This visit, set against the backdrop of Germany's efforts to diversify its economic dependencies from China, underscores the growing importance of India in the global economic landscape. The discussions between Chancellor Scholz and Indian Prime Minister Narendra Modi focused on economic cooperation and facilitating skilled migration, with Germany planning to increase skilled work visas for Indians from approximately 20,000 to 90,000 per year.

Germany's pivot towards India is a strategic move to mitigate the risks associated with its heavy reliance on the Chinese economy. By bolstering economic ties with India, Germany aims to create a more balanced and resilient trade network. However, this shift raises concerns about over-reliance on another large economy. Diversifying economic dependencies should involve engaging with multiple emerging markets to ensure a broader distribution of trade partnerships. Relying too heavily on India could expose Germany to similar vulnerabilities it seeks to avoid with China.

The expansion of skilled work visas for Indians is a noteworthy aspect of Scholz's visit. This initiative aims to address labor shortages in Germany while providing opportunities for skilled Indian workers. However, this development must be approached with caution to prevent potential brain drain from India. Ensuring that the migration policies are mutually beneficial with safeguards in place to protect the rights and welfare of the workers is crucial. Both nations need to collaborate on creating pathways that foster skill development and knowledge exchange ensuring long-term benefits for both economies.

High-profile visits and agreements often serve as symbolic gestures of commitment. However, the true measure of success lies in the practical implementation of agreed policies and projects. Past bilateral agreements between nations have often faced delays, political hurdles and bureaucratic challenges. Establishing robust mechanisms for monitoring and evaluating the progress of these initiatives will be essential to translate symbolic gestures into substantial outcomes.

Chancellor Olaf Scholz's visit to India is a promising development, but its true impact will be determined by the practical actions taken in the aftermath. Both nations must work collaboratively to ensure that the potential benefits are realized, fostering a relationship that is both strategically sound and economically beneficial.

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                                                             ----------------by the correspondent

The World Bank has recently urged India to reconsider its stance on joining the Regional Comprehensive Economic Partnership (RCEP). The report suggests that rejoining the RCEP could significantly boost India's income and exports, particularly in sectors like computing, finance and marketing. While the potential benefits are enticing, it is essential to critically analyze the implications of such a move.

India initially withdrew from the RCEP negotiations in 2019 due to concerns over trade imbalances, especially with China and safeguarding domestic industries. These concerns remain relevant today. Opening up India's borders to goods from other member countries could lead to increased competition for domestic industries, potentially resulting in trade deficits and harming local businesses.

The World Bank's report highlights the benefits of rejoining the RCEP, such as slashing tariffs by about 90% on goods traded with other member nations over the next two decades. This could lead to cheaper imports, reducing costs for businesses that rely on goods and parts from abroad and ultimately translating to lower prices for consumers. However, this also means that domestic industries will face stiffer competition from foreign imports, which could be detrimental in the long run.

On the positive side, rejoining the RCEP could help India inch closer to its ambitious $1 trillion export target by 2030. The RCEP nations comprise 30% of the global population, providing Indian businesses with access to a much larger market. Additionally, the FTA ensures that Indian businesses operating in different member countries won't have to navigate complex cross-border trade regulations.

However, the question remains whether the Indian economy, particularly its small and medium-sized enterprises (SMEs), is ready to withstand the competition posed by goods from other RCEP member countries. Critics argue that the benefits of rejoining the RCEP may not be evenly distributed across all sectors of the economy and some industries may suffer as a result.

Moreover, the geopolitical dynamics cannot be ignored. India's relationship with China has been strained and rejoining an economic pact that includes China could have broader implications for India's strategic interests. Balancing economic benefits with national security concerns will be a critical aspect of this decision.

In conclusion, while the World Bank's report presents a compelling case for India to reconsider joining the RCEP, it is essential to weigh the potential economic benefits against the risks and challenges. A careful evaluation of the long-term implications and a strategic approach will be crucial in making an informed decision that aligns with India's economic goals and national interests.

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           ------by Amit Mittal 

At the 22nd Annual Summit in Russia, President Vladimir Putin and Prime Minister Narendra Modi primarily discussed economic issues and set a bilateral trade target to increase bilateral trade to 100 billion dollars by 2030, including the use of national currencies to circumvent Western sanctions. 

Addressing a press conference in New Delhi Russian Charge d’Affaires in India Roman Babushkin said trade has grown by 10 per cent as compared to the corresponding period of the previous year. The target which has been established by the leaders the new one to achieve 100 billion US dollars in bilateral trade by 2030 seems quite realistic for the benefit of the two Nations the most important point in the joint statement is that we have decided to go ahead with the establishment of

the national currencies settlement.

We will also continue with the issues of quick payments for alternatives to Swift with the focus on digital instruments especially when it comes to the digital currencies of central banks.

We will train the Indian seafarers to better and deeper explore the area that would also cover the Northern SE road navigation and hydrocarbon supplies through the Eastern Maritime Corridor and of course, when it comes to regional connectivity remains our priority area by the way according to the estimates by the year 2030 the kg volume will double by approximately 

small modular reactors, nuclear medicine Force generation of Technologies fast breeder reactors and many other areas. 

Russia has the most advanced competitors with the safest Technologies in order to meet the growing Indian demands in this area. we need to identify a second side for the nuclear power plants along with the kudan kolam nuclear power plant which we are successfully implementing along with that there were a lot of other areas which would make our strategic partnership comprehensive we will resume our inter-parliamentarian cooperation will continue intense NSA level contacts you have seen how big is the part dedicated to counterterrorism in the joint statement so we have quite a serious convergence in this area and serious commitment to go ahead and cooperate bilaterally and multilaterally.

The leaders have condemned terroristic attacks which were committed on the territories of both countries recently. The new and very promising Dimension would be related to our labour Mobility which is all already happening that is a new dimension, it is able to become a new dimension in our People contacts and business opportunities relevant documents are in the pipeline to make this area more regulated we are working.

We have committed ourselves to fulfilling all obligations, and there is a clear understanding that Russia’s active involvement in various areas contributes significantly to boosting local defence production in India. Another crucial aspect I’d like to highlight pertains to education. In April of this year, we hosted the first Russia-India Education Summit. It’s essential to capitalize on this momentum and engage more universities. Specifically, we need to proceed with a dialogue on mutual recognition of diplomas. This step aligns with the facilitation of the visa regime—a desired trend. 

Additionally, we’ve extended an offer for a visa-free group tourist agreement. This proposal originated in 2022 when President Putin first discussed it with Prime Minister Modi. We hope for an early conclusion to this agreement, demonstrating our serious commitment to bilateral and multilateral cooperation.

Regarding recent events, both leaders have unequivocally condemned terrorist attacks on our respective territories. A promising new dimension lies in labor mobility, which is already underway. By year-end, we anticipate further cooperation in spare parts, joint ventures, servicing, technology exchange and localization.

Internationally, our close coordination continues within the UN, G20 and BRICS frameworks. Our focus remains on democratizing global governance, including reforming the United Nations Security Council. Russia reaffirms its unwavering support for India’s permanent membership in the Security Council. In summary, the outcomes of this summit, driven by strong mutual political will, aim to expand, deepen, and diversify trade, economic cooperation, and strategic partnerships for the best interests of our friendly nations.

Regarding Indians in the Russian army, Babushkin clarifies: ‘We have never sought Indian recruits for the Russian army.’ Neither the Defense Ministry websites nor any embassies have expressed such intentions. While a small number—50 to 60 or even 100—may be present, they play no significant role in conflicts. Russia has ample volunteers, rendering foreign recruits unnecessary. These individuals primarily seek commercial opportunities and advantages, including facilitated Russian citizenship. The Russian army has not actively recruited them. Most are on an illegal basis, holding student, tourist or business visas that do not permit contractual obligations. President Putin’s proposal for visa-free group tourist visas is currently on the table in India. We eagerly await progress. As for education, the potential is vast. Despite having around 25,000 to 30,000 Indian students in Russia, this number pales in comparison to the real demand, underscoring the untapped potential of Russian universities.

Both India and Russia are actively discussing ways to diversify their trade basket, aiming to reduce the trade deficit. Among the exciting prospects on the horizon is the possibility of a long-term contract for liquefied natural gas (LNG) and petrochemicals between Indian and Russian companies.

The past year witnessed remarkable growth in these sectors. In 2023, the results were staggering: 90 million tons of LNG, 45 million tons of crude oil. To put this in perspective, just before February 2021, the annual figure stood at a mere 2.5 million tons. The surge in crude oil exports has been explosive and India now enjoys a stable share of crude oil imports from Russia, covering approximately 30%.

While the situation with the Gaspro contract remains complex, there’s a clear trend: Indian companies are increasingly demanding LNG. Despite the challenges, further contracts between Russian suppliers and Indian consumers are under consideration. The next five to seven years could witness significant developments in this area.

India’s petrochemical industry grows at an impressive rate of over 10% annually. Recognizing this, Russia has actively provided technology support. Notably, our Reliance project paved the way and now Nayara is executing a project in Vadinar—a crucial step after refineries. The focus is on polyolefins and there’s immense potential for collaboration in various petrochemical technologies.

In summary, India and Russia are poised to strengthen their economic ties, leveraging LNG, crude oil, and petrochemicals. These strategic partnerships benefit both nations and contribute to their shared prosperity. 

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In the grand orchestra of global diplomacy, the year 2023 witnessed a harmonious symphony between India and Africa, resonating with the rhythm of shared history and mutual respect. As India strums the chords of its aspiration to ascend to the status of a global superpower, it orchestrates a melodious tune with Africa, fostering robust trade and business relations.

The G20 summit in New Delhi served as the grand stage where Prime Minister Narendra Modi struck a noteworthy note. He advocated for the inclusion of the African Union as a permanent member of the G20 ensemble, underscoring the Union’s crucial role in the symphony of global advancement.

Since gaining independence, India has nurtured a melodious relationship with Africa. The shared history between India and Africa forms the foundation for the future relationship between these two regions, a melody that continues to evolve.

The fiscal year 2022-23 marked a significant crescendo in India-Africa trade, reaching a remarkable $98 billion. This serves as a testament to the burgeoning business and economic ties between the two regions, a melody that is growing louder and more harmonious.

The India’s Technical and Economic Cooperation Programme (ITEC) has played a pivotal role in fostering cooperation in human resource development. However, there is room for further progress. The Africa Expert Group (AEG) has put forth the ‘India-Africa Partnership: Achievements, Challenges, and Roadmap 2030,’ which delineates a strategy to fortify the partnership, a sheet music for the future symphony.

Africa is in the midst of significant transitions towards regional integration and is dedicated to the principles of democracy, peace, and progress. Nonetheless, certain countries within the continent continue to grapple with challenges such as insurgency, ethnic violence, and terrorism. As external powers, including China, the US, Japan, Türkiye, and UAE, vie for stronger relationships with Africa, it is imperative to safeguard the interests of the African nations. These countries are in pursuit of market access, energy and mineral security, and enhanced political and economic influence. Despite facing certain challenges in bolstering its ties with Africa, India acknowledges the continent’s significance and potential. India is committed to forging stronger ties with Africa and has initiated several measures in this direction. The creation of an Africa Growth Fund (AGF) to facilitate access to finance can potentially stimulate trade. A special package of measures aimed at enhancing project exports, fostering cooperation in the shipping sector, promoting trilateral cooperation, and deepening S&T cooperation has been proposed. Socio-cultural cooperation is also deemed essential for augmenting India-Africa ties.

Defence and security cooperation is integral to strengthening the relationship between India and Africa. India acknowledges the significance of Africa and is committed to building stronger partnerships with African countries. The Asia-Africa Growth Corridor, an economic cooperation agreement between India, Japan, and several African countries, exemplifies this commitment. India enjoys a substantial partnership with Africa and a wealth of goodwill. It is crucial to periodically reassess India’s Africa policy and maintain a laser-like focus on its implementation.

India’s emergence as a global player is inextricably linked with the nature of its partnership with Africa. As India continues on its trajectory towards becoming a superpower, its relationship with Africa will undoubtedly play a pivotal role. This symphony of shared aspirations between India and Africa is a melody that will continue to resonate in the grand orchestra of global diplomacy.

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                                                                                 by Jjuliaa Gangwani

In the year 2023, India and Europe made significant strides towards strengthening their bilateral relationship. Through a series of strategic engagements and initiatives, both partners sought to deepen their economic ties and pave the way for new opportunities. 

One of the most notable developments was the establishment of the India-Middle East-Europe Economic Corridor (IMEC), which promises to transform the economic landscape by enhancing trade relations and connectivity among participating nations. The IMEC is a testament to the shared commitment of India and Europe towards forging a vibrant economic partnership that is mutually beneficial. 

Additionally, the European Union and India set up the Trade and Technology Council (TTC) in 2023, which is designed to deepen strategic engagement in trade and technology between both partners. The TTC represents a major step forward in the relationship, reflecting the mutual commitment of both partners to fostering a collaborative environment that supports technological innovation, trade, and economic growth. 

Bilateral trade between India and Europe reached USD USD 185.16 Billion in 2022-23, with India exporting USD 96.90 Billion worth of goods to Europe, while imports totalled USD 88.26 Billion. This underscores the significant role that Europe plays as a critical trading partner for India, contributing 21.8% to India's total exports. Despite the challenges posed by a deficit of USD 266 Billion in merchandise trade, largely contributed by petroleum and precious gems, the surplus generated by services trade helped maintain an overall manageable deficit. This is a testament to the resilience and strength of the partnership between India and Europe. 

In conclusion, 2023 was a pivotal year for India and Europe's diplomatic and business relations, with the initiatives taken solidifying existing partnerships and paving the way for future collaborations. The IMEC and TTC stand as symbols of the shared vision of a prosperous and interconnected future. With trade and technology at the forefront, both partners are poised to navigate the complexities of the global stage with a spirit of cooperation and mutual benefit, thereby creating a more peaceful and prosperous world.

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                                                                                   by Jjuliaa Gangwani

In 2023, the diplomatic and economic ties between India and the Latin America and Caribbean (LAC) region saw significant growth. This was a result of a strategic shift in India’s foreign policy, led by Prime Minister Narendra Modi and External Affairs Minister S. Jaishankar.

India’s intensified focus on the LAC region, home to over 660 million people and a combined GDP surpassing US$6 trillion was a calculated endeavour to tap into a market ripe with opportunities in consumer goods, healthcare, education, and more. This shift was led by a new generation of Indian diplomats, entrepreneurs, and academicians.

The relationship between India and Latin America opened a window of opportunity in a post-pandemic, armed conflict-, climate crisis-stricken world. The two blocs have complementary economies and hold a series of strategic resources that could leverage the trade and investment ties for mutual benefit.

In terms of food security, 

productivity in the food sector in many countries of the region is a source of learning for India. In the case of the energy transition and the climate agenda, there are great opportunities for adding technological value in terms of production of strategic commodities in Latin America and the Caribbean, such as lithium.

Health as a global public asset also finds enormous potential in this relationship, as confirmed during the pandemic, with the provision of vaccines. These developments are related to processes of Industrialization 4.0, the knowledge economy, and state-of-the-art technologies that have a vibrant impact on the relationship.

In terms of economic opportunities, the prospects for cooperation between Latin America and India are promising. The Caribbean region, with a population of over 40 million, is a rapidly growing market where India is seeking to expand its trade and investment, especially in sectors such as tourism, pharmaceuticals, and infrastructure.

India’s bilateral trade in the region surged close to USD 50 billion during the financial year 2022-23. The external affairs minister said these figures are a “testament to the strength and potential of our economic partnership”.

India has a natural bonding and convergence of interests on key global issues with Latin American and Caribbean countries and New Delhi’s focus has been on expanding the two-way engagement in a range of areas, including trade, investment, and climate change.

In conclusion, the year 2023 marked a significant milestone in the diplomatic and economic relations between India and the LAC region, setting the stage for further cooperation and mutual growth in the years to come.

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