Sergio Díaz-Granados
Presidente Ejecutivo, CAF -banco de desarrollo de América Latina y el Caribe-
Colombia
There are several ways to explore the history between Latin America and the Caribbean and India, but perhaps one of the most symbolic approaches is through certain products deeply rooted in Latin American culture, such as bananas or mangos, which originated in India and came to the Americas several centuries ago, following intricate trade routes. Yet today, three of the world’s top five banana and mango exporters are Latin American countries.
The dynamics of these products serves as an example in the history of trade that dates back many years, but now holds obvious potential to benefit millions of people. For example, despite the physical distances to the region, India exports more to Brazil and Guatemala than to nearby Cambodia, Japan or Thailand. Similarly, LAC exports more to India than to traditional trade partners like Spain, Germany, France or Italy.
The relationship between India and Latin America opens a window of opportunity in a post-pandemic, armed conflict-, climate crisis-stricken world. The two blocs have complementary economies and hold a series of strategic resources that could leverage the trade and investment ties for mutual benefit.
First, there is food security. The experience of the India-Latin America and Caribbean relation offers possibilities for very relevant synergies in this area. Productivity in the food sector in many countries of the region is a source of learning for India, which—as the most populated country on the planet—faces the challenge of expanding production frontiers, ensuring environmentally friendly practices and promoting learning in its rural sector.
In the case of the energy transition and the climate agenda, there are great opportunities for adding technological value in terms of production of strategic commodities in Latin America and the Caribbean, such as lithium, as well as based on the momentum in renewable energies that India and the region have been advancing in the context of a global discussion of common but differentiated responsibilities.
Additionally, health as a global public asset also finds enormous potential in this relationship, as confirmed during the pandemic, with the provision of vaccines, and how it is realized in the new technological frontier of biosimilars.
These developments are related to processes of Industrialization 4.0, the knowledge economy and state-of-the-art technologies that have a vibrant impact on the relationship. This area shows evidence of cross-fertilization in Argentina’s nuclear and satellite sector, precision agriculture and biotechnology in Brazil, e-mobility and new auto parts in Mexico, and Chile’s fruits and healthy agriculture, which are securing markets in India’s middle class. Also, Panama connects Latin America with the world.
At CAF—development bank of Latin America—, we aspire to become a permanent platform for integration between the region and India, which helps open dialogues in the public-private realm, identify opportunities to reinforce trade, mobilize funds from multiple funding sources, and improve the soft and hard infrastructure that enables business. We are also ready to support the impact actions that countries may have geopolitically on the highest agendas of global discussion. A starting point to strengthen this relationship is the CAF study called “LAC-India New Horizons, New Hopes,” which is part of the launch of an ambitious work plan expected to enrich and benefit the Global South and allow the construction of a multidimensional integration platform. According to the study, the strategic ties can be scaled in quantity and quality. In fact, total trade between the two regions grew by 145% over 10 years and by 2,000% in the past 20 years.
In the context of the visit to Panama of Indian External Affairs Minister Jaishankar on April 24, we organized a meeting between businessmen and leaders of both regions where—in addition to presenting the study that sets the bases for a new cycle of Indian-Latin American relations—, we created a space for meeting and dialogue through the expert hands of renowned former Latin American and Indian ambassadors, as well as the private sector representatives, who shared the progress of relations, the potential for integration and the experience of the region and India in the global reconfiguration of value chains.
Perseverance, organization and culture of encounter are the keys to achieving a deep and multidimensional integration. As a development institution in the region, we are convinced that only through new partnerships will we give Latin America and the Caribbean a new global voice to bridge socioeconomic gaps and offer more and better opportunities to all its people.
