India’s ties with Latin America and the Caribbean (LAC) extend beyond trade to education, diplomacy, and technology collaboration. However, trade remains underutilized due to geopolitical challenges, including sanctions on countries like Cuba.
Expanding scholarships, fostering MSME partnerships, and leveraging India’s strengths in pharmaceuticals, defense, and digital infrastructure can enhance engagement. Strengthening trade agreements, increasing participation in LAC markets, and countering China’s influence through academic and business collaborations will be key to deepening India-LAC economic relations.
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India’s relationship with Latin America and the Caribbean (LAC) has grown beyond just trade, encompassing education, professional development, and diplomacy. Programs such as the Ministry of External Affairs’ high-tech initiatives and ICCR scholarships highlight India’s commitment to capacity-building in LAC nations. However, trade remains an underutilized area due to geopolitical complexities, including sanctions on countries like Cuba. Expanding educational collaborations and increasing scholarships, especially in fields like international finance and trade, could enhance economic ties without additional financial strain. Moreover, strengthening engagement with countries like Cuba and Venezuela—where India has goodwill but minimal trade—could be a strategic move.
Despite efforts by Indian trade bodies like ITPO, LAC representation at key trade events remains low. Encouraging participation from LAC nations, particularly through academic and MSME partnerships, can bridge this gap. Indian startups in technology, defense, and digital infrastructure have significant opportunities in LAC markets, even as larger corporates remain cautious due to political uncertainties. India’s advancements in transportation, digital communication, and self-reliance in technology offer new avenues for trade beyond commodities.
Enhancing trade with Venezuela and Cuba
Venezuela and Cuba present strong potential for collaboration in healthcare, defense, and technology. Cuba’s globally recognized medical industry remains underutilized in India-Cuba ties. Establishing recognition agreements for Cuban medical education and promoting scholarships under Ayush programs could deepen engagement. India’s leadership in affordable pharmaceuticals also makes medical research and drug production viable areas for collaboration.
In defense, India’s expertise in drone technology and counter-drone systems could support Venezuela and Cuba, which have limited access to Western defense technology due to sanctions. Expanding trade beyond these nations, Costa Rica also offers potential, especially in food processing, technology, and industrial goods. Strengthening trade in these sectors can diversify India’s economic footprint in LAC.
Overcoming challenges and expanding market presence
India faces geopolitical constraints in LAC as the region’s trade ties are shaped by global players like the U.S., China, and Russia. China’s expanding influence through infrastructure investments presents a competitive challenge that India must counter strategically. Strengthening soft power diplomacy by sending trade delegations through CII and ITPO and involving regional trade associations from states like Maharashtra can enhance engagement. Grassroots-level awareness and participation remain critical.
A promising strategy involves forming “sister-state” partnerships between Indian states and LAC nations, leveraging shared economic and cultural synergies. Expanding the “Know India” program beyond cultural exchanges to include industrial visits for LAC business delegations can also enhance trade ties. Additionally, mobilizing Indian diaspora communities for economic diplomacy and increasing industry participation beyond large corporates could drive market expansion.
India’s Preferential Trade Agreements (PTAs) with LAC have contributed to trade growth but remain underutilized due to limited awareness among MSMEs and farmers. Many rely on middlemen instead of accessing direct market opportunities. Targeted outreach programs through trade bodies, academic collaborations, and government initiatives can improve PTA utilization. Trade promotion efforts involving students and business schools can also enhance visibility. Without proactive engagement, India’s vision for “Viksit Bharat” will be incomplete without stronger LAC connections.
Expansion of Indian Businesses in LAC
Indian companies need a geopolitically informed approach to succeed in LAC. Trade is now deeply linked to political dynamics, and businesses must engage with think tanks like IDSA and ORF to understand regional risks and opportunities. Conducting in-depth studies on regulations, sanctions, and market conditions before entering LAC is crucial.
China’s strong presence in LAC, backed by government support, gives it a competitive advantage. Indian firms can counter this by fostering collaborations with academic institutions and research bodies. Encouraging student-led research on LAC trade policies and market trends can provide valuable insights for businesses. Establishing joint working groups with LAC trade representatives can further streamline operations and regulatory compliance. A structured approach that integrates government support, academic research, and corporate collaboration will enhance India’s trade footprint in LAC.
Dr. Monojit Das is the Hon. Advisor of Editorial Board, IADN – Indian Aerospace and Defence News.
