CRF Calls for Stronger Institutional Ties and Logistics to Boost India–Latin America Trade

Think tank highlights policy cooperation, supply chain connectivity and trade agreements as key drivers of bilateral commerce

Strengthening institutional linkages and improving logistics infrastructure can help enhance trade and investment ties between India and Latin America, public policy think tank Chintan Research Foundation (CRF) said during a roundtable meeting held in New Delhi.

The discussion brought together representatives from Argentina, Colombia, Costa Rica, El Salvador, Guatemala and Panama to examine ways to strengthen bilateral economic engagement.

CRF said India and Latin America possess significant economic complementarities but have yet to integrate them fully into policy frameworks.

The think tank noted that ongoing geopolitical uncertainty, economic fragmentation and growing concerns over strategic dependencies present an opportunity for both regions to reshape their relationship into a more meaningful strategic partnership.

Shishir Priyadarshi, President of CRF, said that despite the geographical distance between India and Latin America, the relationship is now ready for deeper engagement.

“Participants of the roundtable discussion agreed that the real challenge lies in a lack of sustained policy focus, underdeveloped institutional ties and logistical hurdles. Yet, at a time when countries are seeking to diversify and build resilient supply chains, both India and Latin America stand to gain from a renewed focus on partnership,” he said.

Priyadarshi added that strengthening institutional ties involves building closer and more formal long-term relationships among governments, universities, research organisations, industry associations, regulators and businesses.

He said CRF will establish dedicated working groups and regional workshops to advance the partnership.

India's exports to Latin America increased 7.8 per cent to USD 16.35 billion in 2025-26, compared with USD 15.17 billion in 2024-25.

Imports from the region rose 44 per cent to USD 34.62 billion in 2025-26, up from USD 24 billion in 2024-25, with the trade gap remaining in favour of Latin America.

According to the report, Latin American economies primarily supply ores, minerals, energy inputs and agricultural commodities, while India exports engineering goods, pharmaceuticals, chemicals, automobiles, textiles and IT services.

The Latin America and the Caribbean (LAC) region comprises 33 countries, including 12 South American countries such as Argentina, Bolivia, Brazil, Chile, Colombia and Ecuador, seven Central American countries including Belize, Costa Rica, El Salvador and Guatemala, and 14 Caribbean nations including The Bahamas, Barbados, Cuba and Jamaica.

India is currently negotiating separate trade agreements with Chile and Peru. It is also working to expand the Preferential Trade Agreement (PTA) with the South American trade bloc Mercosur.

Mercosur includes Brazil, Argentina, Uruguay and Paraguay. The India-Mercosur PTA came into force on June 1, 2009.