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Latin America is projected to have GDP growth rates of 1.2% in 2017 and 2.2% in 2018.

These are the latest projections made on 12 October 2017 by UN ECLAC based in Santiago.

 

Mahindra's tractor plans for Brazil

Mahindra plans to invest 70 million dollars in the next four years to increase the capacity of its plant in Dois Irmãos, Rio Grande do Sul, to 4,000 tractors a year from its current producion of 1000 a year.

 

Sterling and Wilson of India getting EPC contracts in solar energy projects in Latin America

This Shapoorji and Paloonji group company has already got a 6MW solar project in Brazil and is pursuing opportunities in Argentina, Mexico, Chile and Honduras besides other countries. It has an office in Sao Paulo.

 

India is more important for Latin American exports than Germany, UK, France, Spain and Italy

India has become more important as an export destination for Latin America than their their traditional European trade partners such as Germany, UK or France. In 2016 Latin America exported 16.7 billion dollars of goods to India while their exports to Germany was 14.4 billion, Spain-13.5bn, UK-10 bn, Italy-9.3 bn and France – 7.2 bn.

India was the sixth largest export destination for Latin America in 2016, after US, China, Netherlands, Canada and Japan.  In 2014, India was in the third rank with 29 billion dollars ahead of Japan, Netherlands and Canada

More in the blog http://businesswithlatinamerica.blogspot.in/


Latin America is increasing its imports in 2017

Latin America is projected to increase its imports by 6% in 2017, according to the 3 August report of the Economic Commission for Latin America and Caribbean ( ECLAC). This is welcome news, coming after the decline of imports in the last four years since 2013.

The region is resuming GDP growth (1.1%) in 2017, after the contractions of 0.4% in 2015 and 1% in 2016. The economic recovery of the region is being driven by the rise in domestic consumption and demand, the increase in global prices of commodities exported by the region and favourable global economic conditions


 

Renuka sugar mill in Brazil auctioned by court 4 September 2017

Renuka's sugar plant in Sao Paulo called as revathi Mill is being auctioned by a Brazilian court to settle the debts of the company. Renuka has been struggling in Brazil financially for the last few years, unable to repay its debts.

 

India' trade with Latin America in 2016-17

For those who think that Latin America is too far and cost of freight is too high and therefore the region should be less important for India’s trade, here is the eye opener from the  2016-17 (April-March) statistics of the Commerce Ministry of India.

In 2016-17, India exported more to Mexico (3.5 billion dollars) than to neighbours such as Thailand (3.1 bn), Myanmar (1.7bn) and Iran (2.4 bn) or traditional trade partners Russia-1.9 bn and Canada-2 bn. India’s exports to Colombia ( 787 m) were more than the exports to some West European countries such as Austria, Ireland or Scandinavian countries. Guatemala had imported (243 m) more from India than some Central Asians and East European countries.

For those who think that it is very difficult for India to compete with the Chinese exports, here is another piece of information: India beat China in export of pharmaceuticals to Latin America. India’s exports were 651 million dollars in comparison to China’s 404 million in 2016. In fact, in the last five years, India has been exporting more pharma to Latin America than China. What is even more interesting is the fact that India imports bulk of its raw materials from China, converts them into finished formulations and exports them.

India’s trade with Latin America in 2016-17 was 30 billion dollars of which export was 10.4 billion and import 19.6 bn. 

Mexico was the largest destination of India’s exports with 3.5 billion.  Export to Mexico has increased by 21% from last year.

Latin America was the leading destination of India’s vehicle exports with a share of 23% of India’s global exports. Mexico continued to be the main buyer of Indian cars with 1.6 bn accounting for 25% of India’s global exports. Vehicle exports to Mexico have been steadily increasing in the last three years and the increase from last year was an impressive 39%. 

The collapse of TransPacific Partnership (TPP) following the withdrawal of US by the Trump administration is good for India. The TPP had extra clauses for patent protection going beyond the WTO standards and this would have affected India’s generic medicine exports to Latin America.


India’s exports could be doubled to 20 billion dollars in the next five years, if the exporters target Latin America more seriously and systematically. 


 

Mexican Grupo Bimbo invests in India- June 2017.

Grupo Bimbo announced in June 2017 a joint venture agreement with Ready Roti India Private Limited (“Ready Roti”), in which Grupo Bimbo will hold a 65% stake. Ready Roti, generates annual sales of approximately US$ 48 million, with four plants and more than 500 associates. Grupo Bimbois one of the biggest Mexican MNC and a global leader in bread business. They have operations in 24 countrie sincluding in USA

 

India and Chile expanded PTA operative from 16 May

Under the expanded PTA, signed in September 2016, Chile has offered concessions to India on 1798 tariff lines with Margin of Preference (MoP) ranging from 30%-100% and India has offered concessions to Chile on 1031 tariff lines at 8-digit level with MoP ranging from 10%-100%.

In the original PTA concluded in March 2006, India’s offer list to Chile consisted of 178 tariff lines the Margin of Preference (MoP) ranging from 10%-50% at 8-digit level and Chile’s offer list to India consisted of 296 tariff lines with MoP ranging from 10% - 100% at 8-digit level.

Brazilian steel maker Gerdau selling its India plant - May 2017

According to news reports Gerdau is in advanced negotiations to sell the control or create a joint venture for SJK Steel Plant in India. Gerdau holds 91.3% of the mill, which can produce up to 300,000 tonnes a year. The plant is located in AndhraPradesh

 

India beats China in Pharma exports to Latin America

India exported 651 million dollars of pharmaceutical products to Latin America as against China's 404 million in 2016. India has consistently beaten China in the last five years in pharma exports to Latin America

India's global export of pharmaceuticals are double that of China. In 2016, India's exports were 13 billion dollars, as against Chinese exports of 7 billion. India is the tenth largest pharma exporter in the world while China's rank is 16th. billion dollars while Chinese exports to US were just 1.1 bn in 2016.

India is the fourth largest supplier of pharma to US with 5.1 India leads China in exports to European Union as well. In 2016, India's exports were 1.56 billion dollars as against China's 1.36 billion. Even in Africa, where the Chinese have spoiled the market with massive credit and some non-transparent practices, India's exports to Africa were 2.8 billion dollars as against 618 million of China in 2016.

The success of the pharma exports should be an inspiration for Indian exporters of other manufactured products who complain about and suffer from Chinese competition.

More..

http://businesswithlatinamerica.blogspot.in/2017/05/india-beats-china-in-pharmaceutical.html#links

 

ZeeTV enters Latin America - April 2017

Zee TV has started a new Spanish channel ZeeMundo with Bollywood movies for Latin American viewers. To start with, it will be available in Mexico and Ecuador. Coverage will be expanded to other Latin American countries soon. ZeeMundo is already available in US for the hispanic audience.

 

Wipro has acquired a Brazilian company InfoServer (in April 2017).

InfoServer provides custom application development and software deployment services especially for banks. Approximate cost of this acquisition 9 million dollars.

 

Trump triggers greater Latin American interest in India.

" So far…. from God but so closetoTrump", is the cry of the Mexicans these days to their patron saint, Virgin of Guadalupe, affronted by Trump's racist comments and accusation of Mexican immigrants as 'criminals, rapists and drug dealers'. Not since the American annexation of Mexican territories and the US-Mexico war in the 19th century that the Mexicans are so outraged with the Big Brother.

The Latin Americans cannot believe that the US, which preached and forced Latin American governments to open up their markets and liberalize imports in the name of "Washington Consensus", is doing exactly the opposite by resorting to protectionism.

Caught between the bullying Trump, indifferent Europe and the suspect Chinese, the Latin Americans have started looking more seriously at India, attracted by its huge and growing market as well as its vibrant and diverse democracy. This is, therefore, the right time and an unmissable opportunity for India to intensify its win-win economic partnership with Latin America.

More ..https://thewire.in/115239/donald-trump-triggers-greater-latin-american-interest-in-india/

 

Essar sells off its BPO arm Aegis which had centres in Argentina and Costa Rica - April 2017

Aegis had the largest Indian BPO in Argentina employing 5000 staff, besides a smaller one in Costa Rica. Essar has announced that it was selling Aegis for 300 million dollars to a private equity firm from Singapore and exit the BPO business

 

Peru allows visa-free entry for Indian business visitors

The government of Peru announced in March 2017 that Indian business visitors holding US visas or a permanent resident status in the United States, Canada, the United Kingdom, Australia or any Schengen Statecan, can enter Peru and stay for 180 days during each visit. Mexico and some Central American countries have a similiar policy.

 

Portal for b2b between Indian and Latin American companies

A young " passionate about Latin America" Indian living in Peru Utsav Sharan has started a portal http://www.negociomundo.com to connect Indian and Latin American companies. Companies can make use of this commendable initiative.

Another useful website is http://www.latmeco.com run from Panama

 

Indian hero in Latin American film.

Prabhakar from Motihari in Bihar, settled in Costa Rica since 1997 has become the hero in the Costa Rican film " Enredados: la confusion" ( Entangled: the confusion)

More in http://latinamericanaffairs.blogspot.in/