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India Expects Exports from Central America

Source: Inter-American Development Bank
Wednesday, July 28, 2010

India could become a major growth market for raw materials from Latin America and the Caribbean.

This region's governments should promote closer ties with the South Asian giant and reduce the trade costs in order to make the most of this opportunity, according to a study carried out by the Inter-American Development Bank (IDB).

India's 1.1 billion population and scarce natural resources, relative to other nations of its size, mean that it has the potential to become a major purchaser of agricultural and mineral products, two of Latin America's main exports, the study says. Currently India comprises just 0.8% of global trade with this region, compared to 7.7% for China.

The analysis can be found in the IDB's book, “India, Latin America's Next Big Thing?”, produced by the Department of Integration and Trade and is based on the idea that India could emulate China's recent economic performance.