he indian ministry of commerce projected that 60 percent of india

7/27/2019 He Indian Ministry of Commerce Projected That 60 Percent of India

1/18

he Indian Ministry of Commerce projected that 60 percent of India's future trade

would be accounted for by free trade agreements (FTAs), with such countries as Paraguay, Argentina,

Brazil, Pakistan and even China. The Indian government is in talks with the Mercusor (a trade association

comprising Argentina, Brazil, Chile, Paraguay and Uruguay) and the SACU (South African Customs Union)

and is looking to increase bilateral engagements with more countries.

Business

Trade

-India's trade with Latin America increased to 25 bn $ in 2011 from 23 bn in 2010

-India's exports went up by 28 % in 2011 reaching 11.6 bn from 9 bn in 2010.

-India's imports declined to 13.5 bn in 2011 from 14 bn in 2010

-Brazil is the leading trade partner followed by Venezuela, Mexico, Chile, Argentina and Colombia

-Colombia is the third largest export destination of India after Brazil and Mexico.

-crude oil is the main item of India's imports accounting for 8 bn $. Copper imports were about 2 bn and

Soy oil imports were over a billion.

-Reliance imported 7.5 bn worth crude from Latin America in 2011, of which 5 bn came from Venezuela.

India's single largest export is diesel. Reliance exported 3.4 bn $ of diesel to Brasil in 2011.

-These are preliminary trade figure


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INDIA LATIN AMERICA TRADE FIGURES - YEAR 2011

INDIA IMPORTS In U$S

Millions

EXPORTS in U$S

Millions

TOTAL TRADE In U$S

Millions

1) BRAZIL 3200 6080 9280

2) VENEZUELA 5000 580 5580

3) MEXICO 1250 2000 3250

4) CHILE 1780 400 2180

5) ARGENTINA 1210 560 1770

6) COLOMBIA 600 880 1480

7) PERU 240 510 750

8) ECUADOR 24 160 184

9) PARAGUAY 74 78 152

10) PANAMA 28 96 124

11) COSTA RICA 14 95 109

12) URUGUAY 20 86 106

13) HONDURAS 2 62 64

14)DOMINICAN REP. 11 42 53

15)CUBA 6 46 52

16) GUATEMALA 3 37 40

17) EL SALVADOR 2 32 34

18) BOLIVIA 28 4 32

19)) NICARAGUA 2 25 27

TOTAL 13494 11693 25187


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Indias trade with Latin America in 2010

Indias trade with Latin America has gone up to US $ 23 billion in 2010 from US $ 2.6 billion in 2001.

Indian exports to the region increased from 1.5 billion dollars in 2001 to 9 billion in 2010 and imports

went up to US $ 14 billion in 2010 from 1.1 billion in 2001.

Indias trade with Latin America in billion US $.

Year 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001

Indias

Exports

9 7.5 8 5 4 3.2 2 1.7 1.7 1.5

Indias

Imports

14 9.7 11 6 5.2 3.1 2.3 1.9 1.7 1.1

TOTAL 23 17.2 19 11 9.2 6.3 4.3 3.6 3.4 2.6

India accounts for a small portion of the Latin American trade which was 1.7 trillion dollars in 2010. Latin

America exported 896 billion dollars worth of goods and imported 793 billion in 2010.

Indias trade with Latin American countries

2010(in million US dollars)

Grouping Country Imports

of India

Exports

of India

Total

Mercosur Argentina 2032 496 2528

Brazil 3492 4242 7734

Paraguay 72 65 137

Uruguay 14 69 83

Special member Venezuela 5178 226 5404


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Andean

Community

Bolivia 5 55 60

Colombia 365 686 1070

Ecuador 10 200 210

Peru 219 498 717

Associate Chile 1582 416 1950

Central America Costa Rica 12 27 39

Guatemala

Honduras 4 33 37

Nicaragua 18 48 66

El Salvador 5 30 35

Panama 7 22 29

Belize

Dominican

Republic

NAFTA Mexico 1000 1600 2600

Others Cuba

The Chinese trade with Latin America was 166 billion dollars in 2010. Chinese exports were 87 billion

and imports were 79 billion

Leading trade partners of India


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Brazil is the leading trading partner of India, followed by Mexico, Argentina, Chile and Colombia.

Indias trade with the major markets of Latin America (Figures in million dollars) below:

Country

Indias Imports Indias Exports

2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010

Brazil 1137 937 958 1102 3415 3492 1203 1470 2200 3564 2191 4242

Mexico 522 671 868 1587 1085 1000 957 1125 1127 1363 1140 1600

Argentina 739 929 859 836 876 2032 261 303 384 492 342 496

Chile 493 1489 2211 1744 908 1600 134 164 208 478 278 350

Colombia 5 64 80 16 449 365 248 346 476 529 504 686

Peru 79 102 210 281 72 230 122 146 252 504 304 470

Venezuela 35 850 489 3700 2260 5178 98 131 95 195 223 226

Indias exports to Latin America

Chemicals, bulk drugs, pharmaceuticals, diesel oil, automobiles, tractors, auto parts, two and three

wheelers, equipments and machinery, medical and scientific instruments, hand tools, machine tools,

optic fibers, blank CDs amd DVDs, tyres, electrical items, leather products, plastic products, sports items,

spices, ayurvedic and herbal products, textiles, handicrafts and incense sticks.

Chemicals including bulk drugs form the largest part of Indias exports.

The main export to Brazil is diesel oil by Reliance. In 2010 the export was 1.7 billion dollars accounting

for 40 percent of Indias total exports to Brazil.

HAL has exported seven Dhruv helicopters to Ecuador Air Force. Other countries such as Bolivia, Chile

and Argentina have shown interest. The region has started opening up for Indian defence products.

Indian mobile phone maker Micromax entering Brazilian market.

Micromax is planning to enter the north eastern region of Brazil to start with. It already has a distributor

in Sao Paulo. Micromax is a new player in India since 2006 and has gained space in the competitive

Indian market with its special features and price. It has become the third largest vendor of GSM phones.

Indian imports from Latin America


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Petroleum crude, copper, soy oil, sunflower oil, minerals, sugar, ethanol, precious and semi precious

stones, agro products, leather, wool, metal scrap, wood, equipment and machinery, aircrafts (from

Brazil), wine and fresh fruits.

Petroleum crude, edible oil and copper are the top three items accounting for over three fourths of the

total imports from Latin America. Imports of these three items are expected to increase in the comingyears in view of the growing gap between demand and domestic production in India.

Latin America has become a new regular source for Indias crude oil imports in the last ten years and

crude oil is the leading item of Indias imports from the region. Venezuela has become the eighth largest

supplier of crude oil to India. The crude oil imports of Reliance accounts for over fifty percent of Indias

total imports from Latin America. Reliance has been importing crude oil from Mexico, Venezuela, Brazil,

Colombia and Ecuador. About two-thirds of Reliances imports from Latin America came from Venezuela

which accounted for 59 percent, Mexico 21 percent and Brazil 14 percent. Reliance imported about

300,000 barrels a day of crude on average from Latin America in 2010. This accounted for about a

quarter of the companys total imports during the period, compared with 13 percent in the same period

of 2009. In 2009 Reliance bought 155,000 bpd from Latin America. This went up to 380,000 barrels a day

in the first four months of 2010.

Essar has also started imports of crude oil from Venezuela. Given the discovery of large new reserves in

Brazil, the growing investment of Indian companies in the region and the increasing domestic demand ,

Indian imports are set to increase in the future.

Argentina is the major source of edible oil and it is followed by Brazil and Paraguay. Wheat is

occasionally imported from Argentina while sugar is sourced from Brazil, whenever there is shortfall in

India. In 2010, India imported 1.8 billion dollars worth of soy oil from Argentina. There is scope to

source pulses, ethanol and biodiesel from Brazil, Argentina, Uruguay and Paraguay.

Copper is the predominant item of Indias mineral imports from Latin America. Most of it comes from

Chile in the form of copper concentrates. Imports from Chile were 1.5 billion in 2010. The other sources

are Brazil, Argentina and Peru.

Investment and joint ventures

Indian companies including NRI firms have invested about 12 billion dollars in the region in IT,

pharmaceuticals, agro-chemicals, steel, mining, agribusiness and other sectors. More investment is

expected to flow in the coming years as a number of Indian companies have shown interest in entering

the region.


7/18

Energy

OVL (ONGC Videsh Ltd) has acquired off-shore oil fields for about 500 million dollars in Brazil. OVL is part

of a consortium in the exploration and production of oil from Carabobo-1 project in the Orinoco region

of Venezuela. The other Indian members of the consortium are Indian Oil Corporation and Oil India Ltd.

The Indian companies have 18% share while Repsol and Petronas have 11% each and the Venezuelanstate oil company has 60% share. The Indian investment in this project is 2.18 billion dollars. The field

will start producing 400,000 bpd of which the Indian consortium is entitled to 72,000 bpd for 25 years.

OVL also has another joint venture with PDVSA for exploration and production of oil in the San Cristobal

oil field.

In Colombia, OVL has acquired a producing field (30,000 bpd) in a 50:50 joint venture with Sinopec. OVL

investment is 600 million dollars in this jv company called as Manasarover Energy Colombia Ltd. OVL has

also taken exploration rights for some offshore oil blocks in Colombia.

OVL has offshore oilfield concessions in Cuba on its own as well as separately as part of a consortium

lead by Repsol.

OVL is exploring opportunities in Ecuador and Argentina.

Bharat Petro Resources, subsidiary of BPCL, along with Videocon International have acquired ten

blocs in Brazil valued at US$ 280 million. The Indian consortium has 40% in these blocks and Petrobras

60%. They have alreay struck oil in some of the blocks.

Reliance has acquired off-shore oil blocs in Colombia in the Borojo North and South blocks in the Pacific

coast for an estimated US $ 50 million. Reliance signed a deal with Ecopetrol of Colombia in December

2009 under which Ecopetrol would take a 20 percent stake in these blocks and would be their operator.

In Peru, they have got hydrocarbon concessions in a joint venture with an Argentine and an Australian

company. They are interested in other countries of the region including Venezuela, and in upstreamventures in Mexico and Central America

Jindal has acquired some gas blocs in Bolivia. They have also got hydrocarbon blocks in Peru.

Assam company has entered into a Farmout Agreement with Sismopetrol and R3 in Colombia for

exploration and production of an oil block known as ANH EL Triunfo located in Casanare in Colombia.

The block size is 10,200 hectares and contains one discovered well (La Cabana). Assam Company has

70% Participating Interest in the said Block with Sismoperrol holding 30% Participating Interest.

South America is becoming a player in the global petroleum market. Brazil has discovered large new

reserves of oil and is set to become a significant exporter. Venezuela is already the Saudi Arabia of theregion with its reserves of over 200 billion barrels. Mexico, Ecuador and Argentina also export crude oil.

Colombia and Peru also have sizeable oil reserves and are under-explored.

In the non-conventional energy sector, Brazil has emerged as a global pioneer and leader in fuel ethanol

and more countries in the region are following their lead. Argentina is the leading exporter of biodiesel

produced from soya.


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Many projects are coming up in the arid areas of Brazil, Argentina, and Paraguay as well as in Central

America and Caribbean to grow jatropha for biodiesel. Indian companies can enter this sector for

investment and joint ventures.

Gammon India Ltd has established a subsidiary company Campo Puma Oriente SA ( based in Panama )

which operates the Puma oil fields in Ecuador which consists of eleven wells with proven reserves of 8million barrels. So far, they have drilled seven wells which produce 1,500 bpd. The contract for the 20-

year lease of Puma fields was signed in March 2008.

The Puma field investment is a joint venture with Joshi Technology International of USA. Gammon has

66.4% and Joshi 33.6%. The joint venture company in Ecuador is called as Consorcio Pegaso They have

invested 50 million dollars till December 2010 and plan to invest 51 million dollars more in the next five

years.

Joshi company, founded by Dr Joshi produces 5000 bpd of oil in Colombia. They also have oil fields in

India and USA.

The Puma block is in the orient basin located 400 km from the capital Quito. The block has an area of

166 sq kms.

Wind Energy

Suzlon Energy Ltd of India has set up a 225 MW wind energy project in north east Brazil. In 2010, they

have got another project of 218 MW in Ceara and Rio Grande de Norte provinces. They are establishing

a plant in Brazil to produce 2 MW turbines with an annual capacity of 400 MW.

Mining and Minerals

Jindal Group is the first one to enter this sector through their 2.3 billion dollars investment in the El

Mutun iron ore project in Bolivia. They will export most of the iron ore. Jindal has also bought a mine in

northern Chile for 53 million dollars to extract magnetite.

Aditya Birla Group has acquired three aluminium plants in Pindamonhangaba, Ouro Preto and Aratu in

Brazil. It has a plan to increase its aluminium production capacity by 20 percent to 250,000 tons by 2014.

It will invest $300 million.

The group has also acquired a carbon black plant in Brazil.

Tega Industries Limited has acquired a Chilean company Acotec S.A in Feb 2011. Acotec is a $35 Mn

company providing products and solutions for abrasion, corrosion and fluid transportation systems to

the mining industry in Chile, Peru, Argentina and Bolivia.

Essar group has bagged an iron ore concession in Amapa, in northern Brazil. They will supply the iron ore

to their steel plant in Trinidad and Tobago, which is under construction.


9/18

Essar is building a 2.5-million-tonnes steel plant in Trinidad and Tobago. The main attraction for the

steel venture is the availability of abundant and inexpensive natural gas used for steel production.

Jindal is going to build a small steel plant, the first-ever in Bolivia, as part of their iron ore mining

project.

Arcelor Mittal has steel plants in Mexico, Trinidad and Tobago, Argentina and Brazil. They have acquired

steel-finishing and distribution companies in Argentina, Uruguay and Costa Rica.

Zuari Industries Limited of KK Birla Group and its JV partner Mitsubishi Corporation has acquired 30%

stake in Fosfatos del Pacifico SA, Peru (Fospac) for $46 million through the Singapore-based JV company

- MCA Phosphates Pte Ltd. The mine is located in Bayovar area in the province of Pieura, Peru and is

expected to have an initial production capacity of 2.5 Mn Metric Tons.

Ispat Group is in the process of acquiring concessions for iron ore in Brazil and for coal in Colombia.

NALCO has announced plans to invest in copper mining in Chile.

Osho Group of plans 70 m $ in Paraguay. Veerendra Agarwal of Osho Group is in talks for acquisition of

a steel mill and a cement plant in Paraguay. he is also interested in investment in Argentina.

Zamin Group, based out of London (owner Pramod Agarwal) has already invested over 40 million dollars

in the Minera Aratiri iron ore mining prject at Valentine in uruguay. 18 million tons of concentrated iron

ore will be produced and exported by 2013-14. The ore will be sent through a new 215 km slurry

pipeline to a dedicated port for export. Reserves said to be over 2.1 billion tons. Total project cost

estimated around 3 billion dollars. Zamin also has the Greystone iron ore project in Brazil where it is

targeting production by 2016 of 6-8 million mt/year of pellet feed.

They have mines in Brazil, Bolivia and Peru

IRK International has acquired an iron ore mine in Julica, Peru for 35 million dollars. The name of their

local company is Pacific Minerals and Metals del Peru. The production is expected to be 500,000 tons in

2011.

Minergy Resources of India has acquired mines in Brazil

Minergy has a JV with Neepaz Mineral Resources and have acquired about 184,000 ha of very prime Iron

Ore and Gold Concessions in the State of Tocantins and have already commenced implementation of an

exploration work program. They have

- 23 concessions for Iron ore

1 concession for Gold


10/18

Total area is 1688 sq kms

All the concessions are located on both side of Palmas, within area of 240kms x 170 kms

Minergy Brazil has recently acquired 24000 hectares of prime diamondiferous areas in the Parana State

in Brazil, there is artisanal Diamond Production within the acreage both in the Terraces and the fluvial

system in the concessions. We are currently planning a work program for the exploration anddevelopment of Diamond production.

Indo Borax has acquired a small borax mine in Argentina and has plans for more acquisitions.

South America is endowed with rich reserves of minerals such as copper, iron ore, gold, silver and

diamond. India will need more of these to fuel its high growth and consumption in the coming decades.

There is scope for mining ventures in Argentina, Brazil, Chile, Bolivia, Colombia and Peru

Automobiles

Mahindra has a joint venture for assembly of Scorpio 4-wheel drive vehicles in Manaus, Brazil and

another JV for assembly of tractors in Venezuela.

Tata Motors is in talks with Iveco of Italy for a possible joint venture to make light commercial vehicle in

Argentina.

Ashok Leyland is exploring possibility of joint venture with Plaza Group of Argentina to produce buses

and trucks.

Sonalika Tractors is exploring possibility of assembling their tractors in Argentina in collaboration with

Apache group.

Bajaj, TVS and Hero Honda motorcycles are assembled in Colombia. TVS has 26% stake in a Colombian

company TVS Andina S.A.

TVS has tied up with DAFRA Motos, a Brazilian company of the Grupo Itavema which has a

manufacturing plant at Manaus with capacity to produce 200 thousand motorcycles annually. In this

plant TVS Apache RTR 150 motorcycles are produced.

Bajaj three wheelers are assembled in Medellin and the Colombian government has authorised Bajaj

Autos to be used as public transport in municipalities with population less than 50,000.

RSB Transmissions has opened a plant at Silao in the state of Guanajuato in Mexico in April 2011. The

plant will produce transmission parts and equipments for automobiles.Investment said to be around 20

million dollars. Employment upto 500 local people.


11/18

Other areas

Havells, the Indian lighting and fixtures firm has acquired the assets and business of Sylavania of US in

Latin America worth 200 million dollars. They have plants in Brasil, Colombia and Costa Rica. The chief of

operations of the Americas Mr Kapil Gulati manages the regional business from Costa Rica.

Godrej has acquired two Argentine companies, Issue Group and Argencos, in 2010. The two companies

are in cosmetics business with core strength in hair colour. They have a turnover of 50 million dollars

and export their products to other Latin American countries.

Videocon has acquired a TV manufacturing plant (owned by Thomson) in Mexico for about half a billion

dollars.

BEML has established an assembly plant in Espirito de Santo province of Brasil for mining, earthmoving

and railway equipments.

Essel Propack has acquired plants in Colombia and Mexico which produce laminated plastic tubes. Essel

Propack inagurated its second plant in Mexico -30 March 2011

JK Tyres acquired Mexican Tyre company Tornel in April 2008 for 68 million dollars. Tornel has three

tyre plants employing 2000 people and producing 6.6 million tyres. It has a turnover of over 200 million

dollars.

Pidilite has acquired a Brazilian adhesive manufacturing company which has a turnover of 50 million

dollars and employs 320 Brazilians.

Vijay Electricals from Hyderabad has acquired a Transformers plant in Joao Pessoa in the northeast of

Brazil. They are setting up another plant in Mexico.

Elgi Equipments has launched a subsidiary at Sao Paolo in Brazil to market its products and later

manufacturing.

DS Constructions Ltd. has acquired Globeleq America's power assets for $542 million, in 50:50 joint

venture with Israel Corporation. The assets consists of natural gas and hydro power plants in Peru and

Bolivia, fuel based power assets in El Salvador, Dominican Republic, Guatemala, Nicaragua, Panama and

Jamaica totaling a capacity of over 2,180 mw.

Elevation Development a singapore-based company of NRI Satinder Garcha has bought the City Hotel in

downtown Santiago facing the Plaza de las Armas in January 2011. The hotel is being renovated and

should be inagurated by end 2012.

Megatherm has set up a Brazilian Subsidiary, Megatherm Group Brasil Ltda, in foundry sector.

Praj industries of Pune has executed ethanol projects worth 35 million dollars in Colombia. They have

entered into a JV with a Brazilian company to build a new ethanol plant in Brazil.


12/18

KEC International Ltd has acquired ( sept 2010) SAE Tower Holdings of USA which has manufacturing

facilities in Belo Horizonte, Brazil ( 65000 tons) and Monterry, Mexico ( 35,000 tons) as well as in USA.

Cost of acquisition was 95 million dollars. SAE Towers is a leader in all three markets.

Wipros Infrastructure Engineering division has acquired ( may 2011) a Brazilian hydraulic cylinder

manufacturer, RKM Equipamentos Hidraulicos.

Tata Beverages is exploring investment in a tea factory in Missiones province of Argentina

Kirloskar is planning to acquire a water pump manufacturing plant in Argentina.

Suggested focus areas for Indian investors and exporters

Indian companies should target Brazil for projects and supply of materials for the 200 billiondollars infrastructure projects for the World Cup 2014 and the Olympics 2016. They should also

focus on the opportunities in the five year plan to spend 220 billion dollars by Petrobras (This is

the largest corporate investment plan in the world at this moment) in the petroleum exploration

and production.

The Minister of Mines and Energy of Brazil announced on 8 february 2011 that Brazil wouldinvest 270 billion dollars in the next two decades in the mining sector and triple the production

of gold, iron and copper by 2030. This offers opportunities for investment as well as exports of

mining machinery and materials.

Investment in commercial forestry and paper pulp in Argentina, Brazil, Uruguay and Chile andtake back timber and paper pulp.

Indian companies should acquire farmland in the region to grow soy, sunflower, pulses andsugarcane to source edible oil, pulses, sugar and biofuels.

The Colombian Minister of Energy and Mining announced on 15 August 2010 that he expectedinvestment of 28 billion dollars in oil exploration and production in the next four years and

increse the oil production to 1.4 million bpd by 2014 from 963,000 bpd in June 2010. Colombia

is emerging as South America's third-largest oil producer behind Brazil and Venezuela. This

opens up opportunities for Indian investors and exporters.

Mining investment in Peru amounted to US$4.02 billion in 2010 and this is expected to increasein the coming years. Analysts predict that in 2011 and 2012 alone, at least USD29 billion of

mining investment will go into Peru and Colombia.

Argentina, Brazil, Uruguay and Paraguay are expanding the area of agriculture and increasingtheir output, encouraged by the high prices and demand as well as by the longterm concern of

global food and energy security. This is good news for Indian exporters of agrochemicals and

equipments and machinery such as tractors.


13/18

PTA with mercosur

This was concluded in march 2005. Preferential duty ( 10-20 percent in most cases) is given to 452 Indian

products entering mercosur and reciprocal concession to 450 products of mercosur entering India. The

PTA has become effective from June 2009.

Duty discount for 452 Indian exports as follows:

10 % : 394 products

20 % : 45 products

100%: 13 products

Duty discount on 450 Mercosur exports:

10 % : 93 products

20 % : 336 products

100 % : 21 products

Indias export items which get Mercosurpreferential duty

Mercosurs export items entitled to preferential tariff of India

Expansion of India- Mercosur PTA

The India - Mercosur PTA which has become operational since June 2009, covers 450 itmes of our

exports and 450 items of Mercosur exports. It has now been decided to expand the lists.

The lists were discussed in the India- Mercosur meeting held in New Delhi on 15 June 2010.

Mercosur has already given their wish list of 1600 items and the Indian commerce ministry has given its

list of 3200 items.These will be finalised in the next meeting to be held.

Indian exporters, export promotion councils and trade and industry bodies can present their cases to the

Indian commerce ministry..mentioning the item with the HS code and percentage of preference you

desire.

Contacts in commerce Ministry

Shubha Sarma [email protected]

PTA with Chile
http://www.businesswithlatinamerica.com/Indias%20offer%20list%20to%20Mercosur.pdfhttp://www.businesswithlatinamerica.com/Indias%20offer%20list%20to%20Mercosur.pdfhttp://www.businesswithlatinamerica.com/Mercosurs%20offer%20list%20to%20India.pdfhttp://www.businesswithlatinamerica.com/Mercosurs%20offer%20list%20to%20India.pdfmailto:[email protected]:[email protected]:[email protected]:[email protected]://www.businesswithlatinamerica.com/Mercosurs%20offer%20list%20to%20India.pdfhttp://www.businesswithlatinamerica.com/Indias%20offer%20list%20to%20Mercosur.pdf


14/18

A preferential trade agreement with chile was concluded in November 2005 and was signed on 8 March

2006. India has agreed to give preferential duties to 276 chilean export items while chile will reciprocate

for 296 Indian items. It has been agreed to move towards a FTA later.

Chilean products that get preferential duty in India Preferential tariffs given by Chile to Indias exports

Lines of Credit

Government Lines of credit

The Government of India has started giving lines of credit (LOC) to other developing countriesincluding LAC countries at concessional terms since 2003. These are being operated byEximbank of India

In June 2005, Government of India granted a 30 million$ Line of Credit to GovernmentofHonduras. A Honduran delegation visited India in June 2007 and finalised utilisation of 9

million$ for communication equipments, 15 million for vehicles,3 million for airforce and 2.4

million for medical equipments.

In May 2009 India offered 80 million dollars LOC to central america during the visit of SICAforeign ministersvisit to Delhi.

In 2006 India offered 30 million dollar LOC to Bolivia. In 2010, Cuba was given a 5 million$ LOC Nicaragua had received a Rupee credit of 12 crores in 1986.

Eximbank Lines of credit

Eximbank has given commercial lines of credit to governments, commercialbanks and regional

organisations in LAC region.

Eximbank of India has given Facility of US$ 50 million to the overseas SPV to be set up in Brazil of the

Indian company Strides Arcolab Limited, Bangalore for part financing acquisition of Penem/ Penicillin

manufacturing facility of Cellofarm at Campos in Brazil under Banks Overseas Investment Finance

Programme.

Facility of US$ 24 million to Vale do Ivai Acucar e Alcool S.A (VDI), Brazil, a step-down overseas

subsidiary of Shree Renuka Sugars Limited (SRSL), Mumbai towards part financing VDIs normal capex
http://www.businesswithlatinamerica.com/Chile%20A.pdfhttp://www.businesswithlatinamerica.com/Chile%20A.pdfhttp://www.businesswithlatinamerica.com/Chile%20B.pdfhttp://www.businesswithlatinamerica.com/Chile%20B.pdfhttp://www.businesswithlatinamerica.com/Chile%20B.pdfhttp://www.businesswithlatinamerica.com/Chile%20A.pdf


15/18

requirement and partly towards refinancing existing debt of VDI, under Exim Banks Overseas

Investment Finance Programme.

For Mahindra & Mahindras partners in Brazil, they are in the process of examining the possibilty of a

loan facility.

Corporation Andina de

Fomento (CAF)

Bolivia ,

Colombia ,

Ecuador , Peru

and Venezuela

USD 10 mn CAF is processing a few proposalsand is expected to refer the same to

Exim Bank, upon their approval.

Central American Bank

for Economic

Integration (BCIE)

Bolivia ,

Colombia ,

Ecuador , Peruand Venezuela

USD 10 mn BCIE is expected to refer proposalsto Exim Bank.

Banco Nacional de

Comercio Exterior

S.N.C. (Bancomext)

Mexico USD 10 mn Bancomext is expected to refer afew proposals to Exim Bank, to be

covered under the above facility.

Banco de Comercio

Exterior de Colombia

(Bancoldex)

Colombia USD 10 mn Bancoldex is yet to refer anytransaction to EXIM Bank, to be

covered under the LOC facility.

Banco Bradesco S.A. Brazil USD 10 mn One contract for USD 80,000.00 hasbeen approved. More contracts are

expected to be covered under the

LOC.

Republic Bank Trinidad &

Tobago

USD 8 mn The LOC Agreement has recentlybeen made effective on May 14,

2004 and the LOC is expected to be

utilized soon.

UNIBANCO Brazil USD 10 mn The LOC Agreement has just beensigned and it will be made effective

upon compliance with conditions

precedent, by UNIBANCO, as per the

LOC Agreement.


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A contract for cement plant for USD4.5 mn is expected to be approved

shortly, once the LOC is made

effective.

Note Most of the above LOCs remain unutilised due to different reasons in different countries. Indian

Exporters and LAC importers are welcome to utilise them. Eximbank would be willing to consider more

LOCs for LAC countries.

contact:www.eximbankindia.com

Development partnership

Government of India gives:

- about 350 ITEC ( Indian technical and economic cooperation) training scholarships to LAC countries

every year

- project assistance eg. 6 million dollars grant for a cricket stadium in Guyana, 1.6 million dollars grant

for the computerisation of Caricom secretriat.

- gifted 150 Bajaj three wheelers to Central American countries

- deputation of experts and advisors to the governments of LAC countries

- emergency and disaster relief assistance in the form of medicines and other supplies from time to time

given to a number of countries.

- has set up IT training centres in Cuba, Panama and Guatemala and plans to set up in other central

american and caribbean countries and also in paraguay and uruguay..

DTAA

Double Taxation Avoidance Agreement (DTAA) has been signed (and ratified) with Brazil and concluded

with Uruguay. Negotiations are on with Chile, and Venezuela.

DTAA signed with Colombia on 13 May 2011.

BIPA

India has signed Bilateral Investment Promotion Agreement (BIPA) with Argentina and Uruguay.
http://www.eximbankindia.com/http://www.eximbankindia.com/http://www.eximbankindia.com/http://www.eximbankindia.com/


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Business practices

Since business with India is a relatively new experience for many latin Americans, they need tobe convinced and persuaded about the quality of products and reliability of of the Indian

companies.

do not get discouraged, if you do not get prompt responses or commitments are not fulfilled aspromised. patience and persistence needed.

In latin America show is more important than the content. Your presentation and packing haveto be impressive. Please flaunt your exports to USA and Europe and proclaim loudly your clients

there.

While Letters of Credit are the general method of payment, cash against payment and otherforms are used. some buyers might ask for long credit for 180 days or even 360 days. Some

Indian cos extend credit and do business without LCs. many Euroepean traders to latinamerica

provide such long credits to sweeten their exports of bulk drugs and chemicals, some of which

are sourced from India !

Some clients might use creative methods of payment and billing, as some do in India. Persons are generally more important than systems and rules. This is why establishing personal

relationship and rapport is more necessary in Latin America. Chileans are the most serious and

system-based in Latin America.

Do not hustle the client asking him for appointment on friday evening or monday morning. Itmay not be fruitful, since the Latinamerican's mind would be on the beach and fun of the

weekend.

Some Latin american businessmen operate from Florida. They have bank accounts and warehouses there.

while the top executives speak english, one needs the help of interpreters at lower levels. Small and medium exporters should explore opportunities outside the big metros such as Sao

Paulo and Mexico City. In smaller cities, there is better receptivity and less competition.

There is a tendency among Indian exporters of bulk drugs, chemicals, hand tools and cycle partsto undercut each other and offer very low prices. This spoils the buyers and the market itself.

The Latin americans use the prices of Indians to beat other Indians.


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There are thousands of followers of SaiBaba and other Indian gurus and spiritual groups in LatinAmerica. It would be worthwhile to check about your client and take appropriate gifts and

souvenirs.

he indian ministry of commerce projected that 60 percent of india

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