India–Latin America relations are relations between India and the countries of Latin America. Trade is the main factor in India-Latin America relations.[1] Latin America is India's fifth-biggest trading partner (if treated as one country).[2]
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History
Before India's independence in 1947, contact between India and Latin America was minimal. A few Indians came into Latin America during this time period due to the trans-pacific slave trade.[3]
In the first 50 years after India's independence, ties between India and Latin America remained minimal;[4] India's participation in the Non-Aligned Movement and the British Commonwealth, as well as its geographical distance from Latin America,[5] separated it from the region. As recently as 1992, Indo-LAC (Latin America and the Caribbean) trade was worth less than $500 million.[6] However, India did provide support in UN votes to Latin American countries in their conflicts with America, resulting in reciprocal support,[7] and the Indian diaspora in LAC (such as the Indo-Caribbeans) was one of the factors providing a connection between India and Latin America throughout this time.[8]
In the 21st century, India-Latin America relations have increased significantly.[9] In 1996, as India and Latin America were taking steps to liberalize their economies, India started a "Focus LAC" policy.[10] In recent years, India has sought to improve relations with Latin America as part of its overall desire to be a leader on the world stage.[11] Latin America for its part has sought stronger ties with India as it has moved from a Western-oriented foreign policy in previous centuries to a more multipolar approach.[12] In 2012, the first India-CELAC (Community of Latin American and Caribbean States) summit was hosted in New Delhi.[13]
India signed a Preferential Trade Agreement (PTA) with Mercosur in 2004.[14] Peru, Chile and Colombia have expressed interest in signing or have expanded their PTAs with India in recent decades.[15]
India and China are sometimes analyzed as competing for engagement with Latin America;[12][16] Indian FDI in the region is around $12-16 billion, while Chinese FDI is worth $159 billion.[17] India-Latin American trade peaked at $50 billion in 2022,[2] and is projected to reach $100 billion by 2027.[18] Latin America receives 1/3rd of India's car exports,[19] while India seeks energy and food security through Latin America.[20] Weak transport capability and above-average tariffs are said to be significant factors holding India-Latin America trade back.[21]
