Potential to double India-LAC trade volume from USD 42 bn in next 5 years: Nirmala Sitharaman
Updated: Oct 16, 2014 05:09:08pm
New Delhi, Oct 16 (KNN) India’s engagement with the Latin American and Caribbean (LAC) region is set for a major leap with the Minister of State for Commerce and Industry, Finance and Corporate Affairs, Nirmala Sitharaman giving a clarion call to LAC and Indian business to double the volume of two-way trade from the present USD 42 billion in the next five years.
Inaugurating the largest-ever congregation of business persons from the LAC region at the two-day India-LAC Investment Conclave organised by FICCI here today, Sitharaman said, “The current bilateral trade volume in which India exports are about half of the total imports from the LAC region is not reflective of the potential which we could collectively achieve by broad-basing our trade and economic ties and by diversifying the basket of traded goods and services. Doubling the trade figures in the next five years should be our collective goal and bilateral investments could help us in achieving this milestone.”
The importance that the LAC region attached to partnerships with Indian companies can be gauged from the fact that over 350 business persons and policy makers from India and LAC countries attended, with Argentina, the partner country, itself coming in with over a 100 businessmen.
The conclave witnessed participation from 23 countries of LAC region.
Also present on the occasion were Minister for Economy, Guatemala, Sergio de la Torre; Minister for Finance, Haiti, Marie Carmelle Jean Marie; Minister for Economic Development, Honduras, Alden Rivera Montes; Minister for Investment Promotion and Foreign Trade, Nicaragua, Alvaro Baltodano; Senior Vice President, FICCI, Jyotsna Suri, and Secretary General, FICCI, A Didar Singh.
The Minister said that over 100 Indian companies have invested in excess of USD 15 billion in Latin America in sectors such as energy, IT, pharmaceuticals, sugar, agrochemicals, electrical products, mining, metals, vehicles, auto parts, cosmetics and plastics.
Likewise, Latin American companies have invested a total of slightly less than USD 1 billion in India in steel, multiplexes, bus assembly, auto parts and electrical motors.
“The figures say it all. A firm commitment from the policy makers and business leaders alike from both India and Latin American countries would immeasurably steer the collective vision towards its intended goals of quantitatively and qualitatively improving our trade, economic and investment relations,” Sitharaman said and urged the delegates to derive maximum benefits from number of business dialogues lined up during the course of the conclave.
She said that FICCI, being an apex industry association in India, along with ‘Invest India’, its joint venture with Department of Industrial Policy and Promotion (DIPP), Government of India, is best suited to support the businesses in forging partnerships.
“I am of the firm opinion that our perspective and how we are going to assess the emerging scenario would go a long way in transforming challenges into opportunities, insurmountable issues into realized goals and abiding India-LAC economic and cultural relations into building blocks. This will also help our trade, economic and cultural relations to blossom and realize their hitherto unexplored potential,” the Minister declared.
Sitharaman assured the delegates that the Government of India would ensure easy and hassle-free business environment and listed out the areas from investment from LAC region.
There were opportunities alone in the National Investment Manufacturing Zones (NIMZ) for infrastructure developers, equipment suppliers and manufacturers, she said and added that the industrial corridors in this country would open up avenues for investment in smart cities.
She expressed optimism that the conclave would afford an opportunity to transform the initiative into an institutionalised platform, thereby inviting and suitably informing the potential investors on “Why” India and LAC region should be the natural business partners in the decades ahead.
She released the FICCI-Accenture Knowledge Paper on ‘India-Latin America & Caribbean: Talking Business’ during the event.
The paper specifically recommends a three-fold approach for doing business with India. One, finding a reliable and talented local partner at the very early stages of investment, two, become conversant with local cultures and business practices and raise awareness of government programmes and government agencies that can facilitate bilateral investment cooperation and three, consider LAC and India as not just standalone markets, but as platforms for tapping a wider market in their neighborhoods.
Offering his comments, President, FICCI and Chairman, Xpro India Ltd, Sidharth Birla said, “The landmark initiative by FICCI, under the guidance and support of the Government of India, is aimed towards opening new windows of engagement and opportunities between India and Latin America and the Caribbean region. Thanks to the process of intense engagement with all LAC missions in India and FICCI’s partners in LAC countries, this conclave has received an overwhelming response.”
He said, “The LAC region is home to around 600 million people, accounts for a combined GDP of about USD 12 trillion (PPP basis), and received USD 179 billion of FDI in 2013, the highest record for any region in the world. India, with a GDP of USD 5.5 trillion (PPP basis) and a 1.25 billion strong market is also set to see a quantum jump in inward FDI over the next few years. Our new government has embarked on a proactive agenda of good governance, economic growth and deeper economic engagement globally and regionally and we are at the cusp of a take-off.”
Speaking about the growing business relation between India and LAC region, Mr. Birla said, “Be it crude or edible oil, pharmaceuticals or textiles, engineering goods or automobiles, aircrafts or software, India and the LAC nations are moving steadily towards building trade and investment bridges, which is expected to culminate into a diversified partnership between emerging markets.”
Convener of India-LAC Conclave 2014 and Chairman and Managing Director, RRB Energy, Rakesh Bakshi said that with enhanced business, the India-LAC region bond is bound to strengthen.
In his presentation on the knowledge paper, Chairman, Accenture India, Avinash Vashistha, said that the biggest takeaway from the research is that there are a plethora of opportunities available for investors in traditional strongholds such as food processing and infrastructure and in emerging sectors like renewable energy and urban resource management.
This journey to prosperity, although rewarding, is going to be a challenging one. Businesses will need to manage cultural and regulatory complexities as well as diverse demand- and supply-side realities. We recognize that if operational barriers are not overcome in a timely manner, they may become structural barriers that could constrain the collaborative growth opportunity, he said. (KNN Bureau)
Inaugurating the largest-ever congregation of business persons from the LAC region at the two-day India-LAC Investment Conclave organised by FICCI here today, Sitharaman said, “The current bilateral trade volume in which India exports are about half of the total imports from the LAC region is not reflective of the potential which we could collectively achieve by broad-basing our trade and economic ties and by diversifying the basket of traded goods and services. Doubling the trade figures in the next five years should be our collective goal and bilateral investments could help us in achieving this milestone.”
The importance that the LAC region attached to partnerships with Indian companies can be gauged from the fact that over 350 business persons and policy makers from India and LAC countries attended, with Argentina, the partner country, itself coming in with over a 100 businessmen.
The conclave witnessed participation from 23 countries of LAC region.
Also present on the occasion were Minister for Economy, Guatemala, Sergio de la Torre; Minister for Finance, Haiti, Marie Carmelle Jean Marie; Minister for Economic Development, Honduras, Alden Rivera Montes; Minister for Investment Promotion and Foreign Trade, Nicaragua, Alvaro Baltodano; Senior Vice President, FICCI, Jyotsna Suri, and Secretary General, FICCI, A Didar Singh.
The Minister said that over 100 Indian companies have invested in excess of USD 15 billion in Latin America in sectors such as energy, IT, pharmaceuticals, sugar, agrochemicals, electrical products, mining, metals, vehicles, auto parts, cosmetics and plastics.
Likewise, Latin American companies have invested a total of slightly less than USD 1 billion in India in steel, multiplexes, bus assembly, auto parts and electrical motors.
“The figures say it all. A firm commitment from the policy makers and business leaders alike from both India and Latin American countries would immeasurably steer the collective vision towards its intended goals of quantitatively and qualitatively improving our trade, economic and investment relations,” Sitharaman said and urged the delegates to derive maximum benefits from number of business dialogues lined up during the course of the conclave.
She said that FICCI, being an apex industry association in India, along with ‘Invest India’, its joint venture with Department of Industrial Policy and Promotion (DIPP), Government of India, is best suited to support the businesses in forging partnerships.
“I am of the firm opinion that our perspective and how we are going to assess the emerging scenario would go a long way in transforming challenges into opportunities, insurmountable issues into realized goals and abiding India-LAC economic and cultural relations into building blocks. This will also help our trade, economic and cultural relations to blossom and realize their hitherto unexplored potential,” the Minister declared.
Sitharaman assured the delegates that the Government of India would ensure easy and hassle-free business environment and listed out the areas from investment from LAC region.
There were opportunities alone in the National Investment Manufacturing Zones (NIMZ) for infrastructure developers, equipment suppliers and manufacturers, she said and added that the industrial corridors in this country would open up avenues for investment in smart cities.
She expressed optimism that the conclave would afford an opportunity to transform the initiative into an institutionalised platform, thereby inviting and suitably informing the potential investors on “Why” India and LAC region should be the natural business partners in the decades ahead.
She released the FICCI-Accenture Knowledge Paper on ‘India-Latin America & Caribbean: Talking Business’ during the event.
The paper specifically recommends a three-fold approach for doing business with India. One, finding a reliable and talented local partner at the very early stages of investment, two, become conversant with local cultures and business practices and raise awareness of government programmes and government agencies that can facilitate bilateral investment cooperation and three, consider LAC and India as not just standalone markets, but as platforms for tapping a wider market in their neighborhoods.
Offering his comments, President, FICCI and Chairman, Xpro India Ltd, Sidharth Birla said, “The landmark initiative by FICCI, under the guidance and support of the Government of India, is aimed towards opening new windows of engagement and opportunities between India and Latin America and the Caribbean region. Thanks to the process of intense engagement with all LAC missions in India and FICCI’s partners in LAC countries, this conclave has received an overwhelming response.”
He said, “The LAC region is home to around 600 million people, accounts for a combined GDP of about USD 12 trillion (PPP basis), and received USD 179 billion of FDI in 2013, the highest record for any region in the world. India, with a GDP of USD 5.5 trillion (PPP basis) and a 1.25 billion strong market is also set to see a quantum jump in inward FDI over the next few years. Our new government has embarked on a proactive agenda of good governance, economic growth and deeper economic engagement globally and regionally and we are at the cusp of a take-off.”
Speaking about the growing business relation between India and LAC region, Mr. Birla said, “Be it crude or edible oil, pharmaceuticals or textiles, engineering goods or automobiles, aircrafts or software, India and the LAC nations are moving steadily towards building trade and investment bridges, which is expected to culminate into a diversified partnership between emerging markets.”
Convener of India-LAC Conclave 2014 and Chairman and Managing Director, RRB Energy, Rakesh Bakshi said that with enhanced business, the India-LAC region bond is bound to strengthen.
In his presentation on the knowledge paper, Chairman, Accenture India, Avinash Vashistha, said that the biggest takeaway from the research is that there are a plethora of opportunities available for investors in traditional strongholds such as food processing and infrastructure and in emerging sectors like renewable energy and urban resource management.
This journey to prosperity, although rewarding, is going to be a challenging one. Businesses will need to manage cultural and regulatory complexities as well as diverse demand- and supply-side realities. We recognize that if operational barriers are not overcome in a timely manner, they may become structural barriers that could constrain the collaborative growth opportunity, he said. (KNN Bureau)
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