India expands engagement with Latin America & the Caribbean: MoS Pabitra Margherita

New Delhi, March 19: India reaffirmed its commitment to strengthening ties with Latin America and the Caribbean (LAC) as Minister of State (MoS) for External Affairs, Pabitra Margherita, addressed the 10th edition of the Raisina Dialogue in New Delhi on Tuesday. Focusing on India’s role as a key partner in the region’s growth, Margherita highlighted economic cooperation, trade expansion, and strategic partnerships across multiple sectors.

In his speech, MoS Margherita underscored India’s belief in building an inclusive and just global order, particularly through strong partnerships with developing nations. He noted that LAC countries hold a significant position in India's global outreach, given their shared aspirations for a multipolar world that prioritises the Global South.

India’s engagement with LAC has grown considerably in recent years, with bilateral trade reaching USD 35.73 billion in FY 2023-24. MoS Margherita pointed out the complementary nature of both economies, where India's demand for natural resources and agricultural products aligns well with LAC’s supply capabilities, while LAC benefits from India’s pharmaceutical and consumer goods industries.

Highlighting recent developments, he noted that India is working to expand its Preferential Trade Agreement (PTA) with MERCOSUR, the trade bloc comprising Brazil, Argentina, Paraguay, and Uruguay. India is already the fifth-largest trading partner of Brazil and Argentina, and this agreement aims to enhance trade flows, reduce tariffs, and create new opportunities.

Additionally, in a landmark move, India secured its first-ever overseas lithium acquisition, signing an agreement with Argentina to lease five lithium blocks for exploration and extraction. This step is expected to boost India's renewable energy sector, particularly in battery production for electric vehicles and storage solutions.

Recognising the energy potential of Latin America, Margherita stressed that the region’s reserves of oil, natural gas, and minerals could significantly contribute to India’s energy security and diversification efforts. India is actively collaborating with LAC nations in the biofuel and ethanol production sectors, opening up new pathways for sustainable energy solutions.

India’s commitment to green energy and disaster resilience has also seen increasing LAC participation in initiatives like the International Solar Alliance (ISA), the Coalition for Disaster Resilient Infrastructure (CDRI), Mission LiFE, and the Global Biofuel Alliance.

In terms of infrastructure projects, India is funding several small and medium enterprise (SME) development projects across the Caribbean, including in Suriname, Saint Vincent and the Grenadines, Trinidad and Tobago, Saint Kitts and Nevis, Dominican Republic, and Barbados. Furthermore, India has extended a Line of Credit (LoC) of USD 23.37 million for the supply of two aircraft to Guyana, and a major power transmission project in Nicaragua is set to be completed between 2025 and 2026.

As part of its global push for digital public infrastructure, India is expanding its Unified Payments Interface (UPI) system to several LAC countries. Trinidad and Tobago has already become the first CARICOM nation to adopt UPI, and similar collaborations are underway in Guyana, Peru, Uruguay, and Jamaica. These partnerships will enhance financial inclusion, boost cross-border transactions, and strengthen digital connectivity between India and LAC.

Margherita also highlighted the deep-rooted cultural and historical links between India and the Caribbean, particularly through the Indian indentured laborers, or Girmitiyas, who migrated to the region centuries ago. He referenced Prime Minister Narendra Modi’s proposal at this year’s Pravasi Bharatiya Divas to create a comprehensive database of the Girmitiyas, aimed at strengthening connections between diaspora communities and their ancestral homeland.

India continues to support education and skill development in the region, offering scholarships and training programs in fields like information technology, medicine, and engineering. These initiatives provide LAC students with access to Indian expertise, advanced training, and academic collaborations, further solidifying the region’s human capital development.

Concluding his remarks, MoS Pabitra Margherita reaffirmed India’s commitment to deepening its engagement with LAC, stating that new opportunities for cooperation would emerge through shared heritage, economic collaboration, and stronger people-to-people ties. He stressed that India’s growing footprint in Latin America and the Caribbean will contribute to a stronger Global South solidarity, fostering a more inclusive and resilient world order.