India holds big potential to becoming a key market for Latin American and Caribbean goods, the Inter-American Development Bank said in a new study that encourages countries in the region to boost cooperation and trade relations with the Asian country.
The IDB book titled “India: Latin America’s Next Big Thing?” noted that India could become a large market for Latin America’s main exports, given the country’s 1.1 billion people and the scarcity in natural resources it is currently experiencing.
The study explored recent economic and development trends in India and their possible effects on countries in Latin America and the Caribbean. It suggested that India could mirror China’s recent economic performance and become a major market for the region’s exports.
“The region and India are increasingly together at the table when major decisions are taken,” IDB President Luis Alberto Moreno noted. “We are starting to see greater integration among them and there is a tremendous opportunity for more trade and cooperation.”
The study outlines several recommendations on how India and Latin American countries can foster closer ties, including:
- Lowering tariffs and trade barriers.
- Reducing transport costs by, for instance, establishing direct shipping services between India and countries in the region. - Increasing the exchange of development and economic lessons. India could provide Latin American countries with lessons in developing information technology services, while the region can share its success stories in mining and agriculture.