Companies should consider moving into South America

India’s private sector has invested billions of dollars into South America, sharply increasing trade flows and expanding India’s global brand. The country’s leading companies have become a ubiquitous presence in the region. More than 100 Indian companies have invested over US$12 billion in South America across a wide variety of industries. India is also one of the largest suppliers of information technology services to South America.

Brazil, Argentina, Chile, Peru, Colombia and Bolivia have been the engines of bilateral growth. Brazil is the largest one but Argentina is also attractive.

India-Argentina relations are cordial and encompass political, economic, scientific, cultural and technological cooperation, including Antarctic research. Argentina has an embassy in Delhi and a consulate general in Mumbai while India has an embassy in Buenos Aires.

A preferential trade agreement between India and Mercosur (of which Argentina is a member) has been in operation since 2009 and bilateral treaties and agreements between India and Argentina include a customs agreement (2011) and a memorandum of understanding for cooperation in agriculture and allied sectors (2010).

India’s imports from Argentina increased sharply from US$1.99 billion in 2014-15 to US$2.47 billion in 2015-16 and Argentina offers vast opportunity for investment in sectors such as infrastructure, oil and gas, agriculture, meat production, banking, advanced technologies and knowledge-based services such as accounting, finance and health.

Areas relating to agriculture and agricultural processing offer immense scope for collaboration between businesses in India and Argentina and enhancing India’s food security. A report released by India’s Ministry of the External Affairs notes that agribusiness is an important sector where the two countries can cooperate to benefit mutually. Farming in Argentina is done on a large scale; it is technology-driven and globally competitive.

Gautam Khurana is the managing partner at India Law Offices in New Delhi. Andres Willa is the managing partner at Estudio Willa in Buenos Aires.