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                 India Hopes to Double Trade With Latin America

   by Anjana Pasricha

   Hoping to double trade with Latin America over the next five years,
   India says it will expand air and sea links with the region and
   negotiate more free-trade agreements.
   From a meager $2 billion in 2000, trade between India and countries
   such as Brazil, Mexico and Colombia has jumped to nearly $30 billion.
   The growth is huge, but trade analysts say it still far below
   potential.
   R. Vishwanathan, who was India's former ambassador to Argentina,
   Paraguay and Uruguay, says India could get much of what it needs, such
   as food and energy, from the resource rich Latin American region.
   "For our imports, Latin America has what we need. The three largest
   items of our imports are crude oil, edible oil and minerals. And in
   India the need for these is only going to grow because of growing
   population," said Vishwanathan.
   At a conference in Hyderabad this week, Indian officials said trade
   with Latin America has been hampered by several factors, such as high
   tariffs and poor transport links. They said India will address these
   issues as it tries to double trade with the region over the next five
   years.
   India wants to establish a direct shipping route to cut down shipment
   time from 45 days to 30 days with countries such as Brazil. There is
   also a proposal for India's national carrier to establish a direct air
   link to Panama. India plans to ease visa rules with countries in the
   region and is negotiating free trade agreements with Mexico and Peru.
   Trade analysts say improving connectivity will go a long way in
   boosting business ties. They point out that China's trade with Latin
   America is 10 times higher than India's, helped partly by better
   transport links.
   "Distance plays an important role. China has good shipping links with
   those countries through the Panama Canal. We don't. Our shipping sector
   is not so strong and the costs of transportation are very high," said
   Rupa Chanda, an economics professor at the Indian Institute of
   Management at Bangalore.
   Indian companies have already gained a foothold in Latin America. In
   recent years they have invested $16 billion in sectors such as
   information technology, energy and pharmaceuticals.
   Some companies in the agriculture sector are also attracted by the
   ample land and water resources in Latin American countries. An Indian
   company is now among the five top sugar producers in Brazil.
   Trade analysts say at a time when growth in Europe and the United
   States is slowing, the growing economies of Latin American countries
   are emerging as a new frontier.
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   n-america/1617639.html

References

   1. http://www.voanews.com/content/india-hopes-to-double-trade-with-latin-america/1617639.html