South America
Economic
- India’s 2 way trade of 50 billion dollars
- Up from 4 billion dollars a decade ago
- But still only 5% of Indian trade
- Trade of what
- Exports-, automobiles, cotton
- Imports – gold, minerals
- Agreement
- Currently PTA – Preferential Trade Agreement with MERCOSUR
- 2/3 rd of trade via this route
- Plans to widen and create FTA
- B2B
- ONGC , Reliance are in process of bagging exploration rights and setting refineries
BRAZIL
- History
- Brazil – Goa connected culturally since 16th century because of common Portugese linkage
- Bulk of Brazilian cattle stock is of Indian origin
- India Brazil strategic partnership since 2006
- Political
- G4
- Both support each others entry into UNSC
- BRICS
- Other forum
- IBSA, BASIC, G 20
- G4
- Nuclear
- Brazil member of NSG
- Nuclear trade can fructify
- Economic
- Trade of around 10 billion $
- Crude Oil- Diesel forms 50% of that
- Brazilian oil export to China is slowing
- India has an opportunity to take over
- Indian exports mostly manufactured goods
- Most of the trade through MERCOSUR PTA route
- Explained above
- Culture
- Ayurveda, Yoga popular in Brazil
- Other areas of cooperation
- India can learn from the successful Bolsa Familia Program, on which DBT is based
- Brazil based ethanol generation program highly succesful
- Both nations at similar levels of economy
- India can use the Latin American region to launch satellites
- Challenge
- Distance
- Limited people to people interaction
- Troubled Brazilian economy
- India doesn’t have an embassy in all the countries
- China surging ahead- Has FTAs in comtrast to India’s PTA
Colombia
- Civil war ended
- Between govt and leftists FARC
- 50 years turmoil
- FARC – 10 billion $ drug exports to US- also faced US backlash
- FARC to give up arms – will get seats in the assembly for 10 years (2026)
- Took place as the founder Velez died in 2008
- Though peace not certain as no agreement with another group ELN- although a ceasefire in place with it too
- Case Study – Naxal, NE
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