The Confederation of Indian Industry (CII) is planning to organize the next edition of India-LAC ( Latin America and Caribbean) in November 2022.
The trade in 2021-22 was 45 billion dollars. This could be increased to 100 billion dollars in the next five years. Latin America contributes to India’s energy and food security with supply of crude oil, Lithium, edible oil and pulses. Indian companies have invested over 12 billion dollars in Latin America.
In holding the Conclave, India could learn from the large scale and impressive China-LAC Business Summits.
The China-LAC Business Summit, started in 2007, has been held regularly every year and the 15thedition is going to be held in December this year in Guayaquil, the main port city of Ecuador.
The 14th edition was held in 2021 in Chongqing, China in November 2021.
The summit is held alternately in China and LAC region in different cities. Hundreds of companies, besides government departments and organizations from both sides participate in the summit. The annual summit has become a blockbuster event for promoting trade and investment. The Chinese government and their regional authorities at provincial and city levels invest significant resources to the make the summits successful. Big ticket investments and trade deals are announced at these summits. For example, in the 2021 summit it was announced that the China-Tibet Summit Resources company signed a 700 million dollar contract for a Lithium project in Argentina.
One of the highlights expected in the 2022 summit might be the signing of a China-Ecuador Free Trade Agreement (FTA). China has already signed FTAs with Chile, Peru and Costa Rica. China has roped in 21 countries of LAC region in its Silk Road programme.
There is need for raising the profile of India-LAC business conclave and institutionalize its organization with adequate resources. The event should be held in different cities in India and LAC region alternately.
At present this event is held in an ad hoc manner and in small scale by CII and FICCI alternately in India. Only once CII had organized it in Latin America.
The Latin Americans are even more keen for economic engagement with India, which is the seventh largest destination for their exports. In 2014, India was #3. They exported more to India than to their traditional trade partners such as Germany, France, Spain, Italy or UK. India was the #1 destination of Latin American exports of vegetable oil, #3 for gold, #4 for crude oil and #8 for copper. The Latin Americans want to reduce their overdependence on China and attach importance to India as part of their policy of strategic diversification. This is the right time for India to intensify its win-win economic engagement with LAC region.
Some suggestions for the Nov 2022 Conclave and for promotion of business with LAC region:
-Both the Commerce and External Affairs ministries should extend large financial support to the conclave to make the annual event successful and important.
-The Conclave should be raised to a larger national level, beyond the membership of CII or FICCI. All the export promotions councils, chambers of commerce, trade and industry bodies of India should be invited and involved to make the conclave as a Mega event
-Similiarly there should be involvement of Latin American regional organisations and banks such as InterAmerican Bank for Development, Development Bank of Latin America, Central American Integration Bank, Caribbean Development Bank, ECLAC, Mercosur, SICA and Pacific Alliance, besides chambers of commerce.
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