Latin America in India’s Foreign Policy

Latin America is finally on the radar of Indian foreign policy-makers after decades of peripheral engagement with the region. While the China factor may have prompted this rethinking, India has its own pragmatic reasons to cultivate the Latin American countries. The reasons for Latin America’s new gaze falling on India are equally compelling—the end of the Cold War, the decline in US influence in the region and the spread and consolidation of democracy. The combination of new factors has allowed the region to search for partnerships far beyond the region, particularly Asia. If India provides attractive markets for resource rich Latin America, India is looking for new markets and investment destinations to meet the demands of its fast-growing economy. If India has to match China’s presence in Latin America, it will need to address various impediments like high tariffs, prohibitive transportation costs and other trade barriers.