January 19, 2012
by Ben Miller
Trade and FDI flows, not to mention portfolio investments, between India and Latin America remain modest at best, and pale in comparison to the region’s much trumpeted relationship with China. But this is starting to change, and quickly, amid expectations that India could play an equivalent or even more important role in Latin America’s growth story.
Latin America’s abundance of fresh water, land and natural resources are becoming increasingly important for a densely populated India, whose growth rate may soon surpass China’s. Gaining access to food sources and raw materials will clearly be a top priority.
Indeed, India holds much promise for Latin America, representing
India could represent a massive market for LatAm commodities. But can it act as a real driver for the region’s growth and lessen South America’s reliance on China?