♤ Absent strong ties in geography, what India and South America have instead is a shared post-colonial history.

♤ Today, it is not only economics that creates the rationale for strong bilateral ties between India and South America; there is also India's desire to diversify energy sources, and a growing Chinese influence in the region. It is in India’s strategic interest to reduce its dependency on West Asia for its energy security.

♤ India is looking to further diversify its trade to relatively newer markers in Latin America and Caribbean Islands.

♤ Many believe that trading with Latin America is expensive and therefore should not be a priority.

♤ However, Ministry of External Affairs has highlighted the potential of higher volumes of trade: “India’s exports to Latin America are growing at a robust rate. Indian pharmaceuticals, automobiles, textiles, chemicals, machinery and other value added products have found dedicated customers all over the region. Indian companies – UPL, Godrej, Hero and others – have bought local companies or invested in greenfield projects. Over a dozen Indian software companies employ from a few dozen to several thousand software professionals in development and delivery centres all over Latin America. Latin America offers an essential alternative source for our raw material needs, and new markets for value-added exports of our goods and services, in an increasingly insecure and volatile international environment.”

1.2.1. History of Relations

♤ Perhaps the high point of Indian diplomacy with Latin America remains then Prime Minister