India’s exports were 12.74 billion dollars in 2020-21 (April-March), according to the figures just released by the Commerce Ministry of India. The exports to the region have declined marginally by 3.3% from 13.18 billion in 2019-20. This is not bad in view of the fact that India’s total global exports have declined by 7% from 313 bn to 291 bn in the same period.
Brazil continued as the # 1 destination of India’s exports to the region, with 4.25 billion dollars.
The other major destinations were:
Mexico 3.08 billion dollars
Colombia 865 million
Chile 805 million
Peru 765 m
Argentina 688 m
Venezuela 557 m
Exports to Mercosur was 5199 million, Pacific Alliance 5522 m and CAFTA (Central America + DR) 1143 m
Major exports
Vehicles 2608 million dollars
Chemicals 2534 m
Pharma 1196
Machinery 1152
Diesel 1034
Textiles 704
Cotton. 417
Plastics. 421
Iron and steel 599
Aluminium products 393
Rubber products 254
Car exports
Latin America accounted for 30.5% ( 1.3 bn) of India’s global car exports of 4.3 bn dollars. Mexico was the largest global market for Indian cars with 860 m. US was second with 512 million.
Other major destinations: Chile 201 m and Peru 86 m
Motorcycles
India was the second largest supplier of motorcycles to Latin America with 577 million dollars. This is 28% of India’s global exports of 2 bn.
Major destinations were Colombia 190 million dollars, Mexico 90 m, Guatemala 84 m and Peru 53 m. Colombia was the third largest global market for Indian motorcycles after Nigeria and Nepal. Some years back Colombia was the # 1 destination. Indian brands are market leaders in Colombia and Guatemala. Hero Motors has invested 80 million dollars in a production plant in Cali, Colombia.
Pharmaceuticals
India is the fifth largest supplier of pharmaceuticals to Latin America. Major destination of India’s pharma exports: Brazil 317 million dollars, Peru 128 m, Chile 123 m, Mexico 114 m, Colombia 68 m, Dominican Republic 54 m, Venezuela 51 m, Guatemala 48 m, Bolivia 29 m and Ecuador 28 m.
India’s exports to Latin American countries in comparison to neighbors and traditional trading partners
India’s exports to some of the distant Latin American countries are more than the exports to neighboring countries or traditional trade partners with same or more population. This is a trend of the last several years.
Examples:
- 209 million dollars to Dominican Republic (population 11 million) more than the 169 m to Cambodia (population- 16 m)
-331 m to Guatemala ( pop-11 m) vs 225 m to Kazakstan (pop- 19 m)
-865 m to Colombia (pop 50 m) more than the exports of 779 m to the neighboring Myanmar (pop 53 m)
-4.24 bn to Brazil and 3 bn to Mexico vs exports to Russia (2.6 bn), Nigeria (3.1 bn), Egypt (2.2 bn), and Canada (2.9 bn)
India exported more motorcycles (190 million) to Colombia than to neighboring markets such as Bangladesh (98 m).
India’s car exports to Chile at 201 million dollars are more than the exports to Nepal (85 m), Bangladesh (41 m), Sri Lanka (3 m) and Myanmar (4 m).
Imports
Major Latin American suppliers were: Brazil 3 bn, Mexico 2.85 billion, Argentina 2.63 bn, Peru 1.52 bn, Colombia 1.4 bn, Chile 1.18 bn, Bolivia 1.16 bn and Venezuela 714 m
Venezuela used to be the major source of imports in the region for the last fifteen years with supply of large volumes of crude oil. Due to the US sanctions, Venezuelan oil supply to India has come down drastically from its peak of around 10 billion dollars.
Main import items
Crude oil 5047 million dollars
Gold. 4055 m
Veg oil. 2443
Raw Sugar 612
Copper. 479
Machinery 378
Chemicals 288
Wood 349
Plastics. 162
Fruits& veg 110 m
Sources of crude oil imports: Mexico 1974 m, Brazil 933 m, Colombia 944 m, Venezuela 644 m ( down from 6.03 billion dollars last year), Ecuador 234 m and Cuba 67 m
Gold import sourcing: Peru 1500 million dollars, Bolivia 1156 m, Colombia 378 m, Brazil 270 m, Dom Republic 234 m, Mexico 192 m and Argentina 324 m.
Argentina was the main Latin American supplier of edible oil with 2.19 billion dollars, followed by Brazil 256 m.
Trade 2020-21
Country | exports | imports | Total trade |
Brazil | 4245 | 3016 | 7261 |
Mexico | 3087 | 2846 | 6933 |
Argentina | 688 | 2627 | 3315 |
Peru | 765 | 1521 | 2286 |
Colombia | 865 | 1404 | 2269 |
Chile | 805 | 671 | 1476 |
Venezuela | 557 | 714 | 1271 |
Bolivia | 94 | 1159 | 1253 |
Ecuador | 208 | 333 | 541 |
Dom Republic | 209 | 257 | 466 |
Panama | 152 | 33 | 185 |
Guatemala | 331 | 21 | 352 |
Uruguay | 105 | 164 | 269 |
Honduras | 163 | 13 | 176 |
Costa Rica | 114 | 47 | 161 |
Paraguay | 161 | 16 | 177 |
El Salvador | 84 | 4 | 88 |
Nicaragua | 90 | 6 | 96 |
Cuba | 20 | 69 | 89 |
Total | 12743 | 14921 | 27664 |
Decade of trade from 2010-11 to 2019-20
India’s exports had increased from 10.04 billion dollars in the beginning of the decade to 13.7 bn in 2014-15. But the Latin American recession and economic difficulties caused a dip in India’s exports in 2015-16. Since then the exports have increased steadily until the covid crisis.
India’s imports reached a peak of 31.38 billion dollars in 2012-13 due to the high crude oil prices and large volume of India’s imports from Venezuela. But since then, the oil prices have come down and due to US sanctions, the volume of imports from Venezuela has also reduced drastically.
The annual India-Latin America trade had reached a peak of 44.08 billion dollars in 2013-14 due to the high oil prices and large crude imports from Venezuela.
Year | exports | 1mports | Total trade |
2020-21 | 12.74 | 14.92 | 27.66 |
2019-20 | 13.18 | 20.67 | 33.85 |
2018-19 | 13.16 | 25.7 | 38.89 |
2017-18 | 12.1 | 24.4 | 36.45 |
2016-17 | 10.4 | 19.6 | 30 |
2015-16 | 10 | 19.7 | 29.7 |
2014-15 | 13.7 | 29.3 | 43 |
2013-14 | 12.77 | 31.31 | 44.08 |
2012-13 | 12.48 | 31.38 | 43.86 |
2011-12 | 11.33 | 18.42 | 29.75 |
2010-11 | 10.04 | 14.01 | 24.05 |
Market
Latin America, the region of 19 countries, has a total population of 620 million and GDP of 5.4 Trilion dollars.
The region which had a historic GDP contraction of 7.7% in 2020 is forecast to rebound with a growth of 3.7% in 2021.
The region's external trade declined by 8.6% in 2020. Latin America's imports were 904 billion dollars (down from 1006 bn in 2019) and exports 935 bn in 2020, declining from 1007 bn in 2019.
There is potential for India to increase its exports to about 20 billion dollars in the next five years if the Indian exporters and government intensify their export promotion seriously and systematically. At this time of austerity, Latin Americans look for affordable products from less expensive sources. Although China fits this expectation, the Latin Americans seek to reduce their overdependence on China with which there is growing trust deficit especially after the Corona virus which originated from Wuhan.
