34. It is time to Tango, India.

Source: https://ciiindialacconclave.in/

Latin America and the Caribbean (LAC) countries are often considered as the last frontier in India’s Foreign Policy. It is surprising if we consider the similarities in how these two regions evolved historically. To begin with, both these regions were colonies of European powers. During the Cold War era, they faced the heavy brunt of decolonization and confronted development challenges.

Interestingly, LAC countries have been seeking strong diplomatic ties with India for a very long time. The Latin American countries have more embassies in India, than India does in the region, a total of 14 Indian missions, compared to twenty resident missions by the LAC countries. Even if India’s relationship with few of the countries are longstanding, for example with Cuba and Mexico, the relationship between these two regions is still in the nascent stage. 

There are many reasons for this. First, the geographical distance separating the two regions is enormous. Secondly, these two regions have different interests when it comes to global politics. Third, the limited or almost negligible diaspora connection between the two. The current Indian diaspora in the LAC countries can be traced back to the mid-19th century when indentured Indian laborers were bought into the Caribbean by the British to work on the plantations. 

Another reason can be the intensification of Chinese influence in the LAC countries over the years. Since 2005, China has poured over $141 billion in loans into the LAC region. China has also invested USD 250 million into these countries¹. This is in sync with China’s dream to expand the Belt and Road Initiative. China is also the largest trade partner for many countries in the region, especially Brazil, Peru, and Chile. Chinese investments are perceived as very attractive to the LAC countries. The influx of Chinese companies in these regions is perceived as a threat to India’s influence in the region. 

Indian Prime Minister, Narendra Modi’s visit to Brazil in 2014, just one month after his elections, to attend the annual BRICs summit was a positive step to strengthen the relationship between both these regions. However, since he resumed office, he has visited the region only 3 times, in 2014 for the BRICS summit, to Mexico in 2016 and Buenos Aires in 2018 for the G20 Summit. In contrast, Latin American heads visit India more often! 

OPPORTUNITIES: 

To begin with, Latin America and India have the opportunity to benefit tremendously from their economies. The combined GDP of Latin America is more than $5 trillion. The region is also rich in resources, such as copper, iron, lithium, gold, and silver. The area has also seen incredible growth in its Foreign Direct Investments. Indian companies such as Jindal Steel and Power, TATA Consulting Services, as well as Essar Steel have already invested in the region. India is also increasing supporting Information Technology (IT) services to Latin America. 

Latin America can also be very important to protect India’s energy security. As such, countries like Venezuela, Brazil, and Columbia can act as alternatives to Iran’s oil supply. Currently, India only imports 15% of its crude oil from the LAC countries and US economic sanctions on Venezuela have threatened India’s relation with the country. 

India and the LAC countries also have the potential to come together for south-south cooperation. This is true for global challenges, such as fighting climate change, terrorism and other problems facing the Third World nations. Both these regions can come together to assume leadership. Latin America is already an important part of India led the International Solar Alliance. These two regions can also cooperate in the areas of food security, defense, space, maritime security, science, and technology. 

In conclusion, it is time India enhances its diplomatic ties with the LAC countries. There is a need to remove the psychological barrier that has stopped these two regions to develop their relationships. Promotion of Latin American culture and language, exchange programs should be encouraged. India should also conclude Free Trade Agreements with these nations to reap the benefits of this golden opportunity. 

REFERENCES:
1. Jenner, F. (2019, May 17). Where China is most heavily investing in Latin America. Latin American Reports. Retrieved from https://latinamericareports.com/where-china-invest-latin-america/2064/.