Indian Economy Will Get Momentum; Foreign Minister Will Visit Brazil, Argentina, And Paraguay, This Will Be The Agenda

There are signs of recession in America and Europe. Seeing the signs of recession in developed countries, India has started exploring the possibility of increasing trade in Latin American countries. External Affairs Minister S. Jaishankar is going on a tour of three major countries in Latin America, Brazil, Argentina, and Paraguay. Jaishankar will be on a visit to these three countries from 22 to 27 August, where there will be talks with major business organizations along with diplomatic talks.

Experts telling signs of recession

There has been a negative growth in America's growth rate in the first two quarters of 2022, which economic experts are calling a sign of recession. America is a major trading partner of India. India exported $76 billion to the US in the financial year 2021-22 and imported $43 billion from the US. The onset of the recession in the US is showing its impact on Indian exports and orders for engineering goods and many other items have started declining.

what do the figures say?

According to the commerce ministry, in the last financial year, India exported only $ 18.89 billion to Latin America. However, this export is 48 percent more than the financial year 2020-21. On the other hand, India imported USD 25.62 billion from Latin America in 2021-22. Brazil's share in this import was $5.71 billion and Argentina's share was $4.2 billion.

Less share of Latin American countries in India's total exports

India has exported goods worth $420 billion in the financial year 2021-22. That is, the share of Latin America in India's total commodity exports is not even five percent. According to foreign trade experts, there is still enough room in Latin America to increase its exports to India. In view of this, the External Affairs Minister held a meeting with the ambassadors of countries like Argentina, Brazil, Cuba, Mexico, Paraguay, Suriname, Coast Rica, and Panama on Saturday before his visit to Latin America.

India's eyes on Latin America

India exports textiles, pharma, plastics, machinery, and chemicals to Latin America. According to experts, India wants to continue the growth rate of exports of employable sectors like textiles, engineering goods, gems and jewelry, and leather goods. Therefore, it has become necessary to expand the foothold of Indian exports in Latin America.

Most exports to Brazil

Among Latin America, India exports the most to Brazil. In the last financial year, India exported $6.49 billion to Brazil, which is 53 percent more than in 2020-21. In the financial year 2021-22, India exported $1.43 billion to Argentina, which is 107 percent more than the previous fiscal year. In such a situation, there is every possibility of increasing trade in these countries.