Peru’s Path Forward: Navigating Political, Economic, and Global Dynamics

Toward Stronger India-Latin America Economic Relations?

Despite much talk of enhanced Indian engagement with the region over the past decade, India-Latin America ties remain relatively limited. Last year, bilateral trade between India and Latin America totaled US$45 billion and India’s total foreign direct investment (FDI) was estimated to be US$12-16 billion. Although India-Latin America trade rebounded in 2021 and 2022, these numbers still pale in comparison to those of Latin America’s other major economic partners. China’s total 2021 trade with the region exceeded US$445 billion, for instance, and FDI flows neared US$159 billion, according to Red ALC-China calculations. Yet, as Latin America grapples with the wide-ranging effects of the Covid-19 pandemic, expansion of Indian trade and investment with the region could certainly boost regional recovery, especially given an anticipated boom in India’s economic performance this year, India’s continued engagement within growth-promoting sectors in the region, and growing interest among Latin American leaders in sizable social spending and infrastructure programs.

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