Latin America is missing a big market in India, which has the potential to be a major buyer of agricultural products and minerals, two of the main exports of Latin America, according to a study.
Currently, India accounts for only 0.8 per cent of Latin America's global trade, compared with the 7.7 per cent share of China.
A reduction in transportation costs combined with lower tariffs could increase India-Latin America trade by 35 to 45 per cent, according to a new study by the Inter-American Development Bank (IADB).
With a 1.1-billion population and a rising appetite for natural resources, vis-a-vis other large-sized nations, the South Asian giant has the potential to be a major buyer of agricultural products and minerals, IADB said in its study, `India: Opportunities and Challenges for Latin America.'
The book produced by the IADB's department of integration and trade, traces the recent development and economic trends in India and its possible impact on Latin America and the Caribbean.
"India," the study says, "could emulate the recent economic performance of China, which has become an important export market in Latin America and the Caribbean.