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India seeks more trade, investments from Latin American nations

India has entered into a preferential trade agreement with MERCOSUR bloc (comprising Brazil, Argentina, Uruguay and Paraguay) and Chile, and is in talks to widen the base of these pacts.

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India has sought investments from Latin American nations while emphasising upon the need to strengthen the existing trade pacts to boost economic ties between the two regions.

India has entered into a preferential trade agreement with MERCOSUR bloc (comprising Brazil, Argentina, Uruguay and Paraguay) and Chile, and is in talks to widen the base of these pacts.

Commerce Secretary Rita Teaotia said, India and MERCOSUR bloc have already entered into an agreement but that pact is very limited.

"It is still a very very limited arrangement and we look forward to deepening this engagement, adding value to it and really using it as a tool to be able to facilitate business exchanges with each other," she said.

The basic structure of the agreements "really deserves serious attention, and I would urge that we take this discussion and diologue forward", she added.

Teaotia said that huge potential exists between India and these regions to expand trade and investments ties.

"The potential is immense. If we are able to enlarge and strengthen the agreement then the potential for multiplying these gains mutually is really strong," she said at 'India - Latin America and Caribbean Conclave' organised by CII.

India is in serious conversation for entering into a free trade agreement with Peru, she added.

Teaotia said that "we are engaging with many countries (in Latin America)" and there is a more room available to work in these directions.

Further she pointed that Indian pharmaceutical companies are facing problems in that region. India is recognised as a pharmacy of the world in terms of high quality and affordable generic medicines which help to reduce health cost, she added.

"But our access to healthcare market in Latin America has so far been somewhat hampered in some countries owing to many of the existing regulations which have resulted in delays in registrations. I would urge the leadership to have a look at some of these issues. It should be a win-win for both sides," she said.

The two-way trade between India and Latin America has increased to USD 45 billion in 2014-15 from USD 3.76 billion over a decade back.
She said both sides can increase trade and investments in areas such as energy, minerals, chemicals, pharmaceuticals, automobiles, hydrocarbon and IT.

Teaotia asked the Latin American companies to participate in the 'Make in India' initiative as it aims to provide a conducive environment for investors.

Inviting investments in mining, she said India allows 100% FDI in the sector under automatic approval route. "In infrastructure sector, huge opportunities exist. We welcome investments in this. Huge scope is there is services sector. I believe we can cooperate in IT, education, telecommunication, yoga, telemedicine and healthcare services," she said. 

Teaotia said that both the sides should engage in each other's programmes in order to increase economic ties.

The current trade figures are not satisfactory given the potential in India and Latin American countries, she added.

"Investments from Latin American countries too are small. We would like to engage with you and welcome you in the 'Make in India' initiative and provide conducive environment for greater trade and investment flows," she said.

The Commerce Secretary informed that several Indian companies have presence in that region including Mahindra, TCS, Wipro, Ranbaxy and Dr Reddy's Laboratories and ONGC Videsh.

Speaking at the function, Uruguay's Foreign Affairs Minister Rodolfo Nin Novoa said that huge opportunities exists in both the countries for trade and investment.

Minister from Nicaragua and Costa Rica were also present at the event.

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