How India’s Latin America Expansion Creates New Opportunities for Businesses

India is strengthening its relations with Latin American countries as it actively seeks to diversify its trade partnerships beyond the United States (US), Europe, and South Asia. By the end of 2025, India had advanced trade negotiations with Peru and Chile and launched a new engagement framework with Mexico.

These initiatives reflect a broader strategy to deepen economic ties with the region amid rising tariff pressures and shifting global trade dynamics.

India’s engagement with Latin America has moved beyond traditional trade to encompass a broader set of economic and developmental priorities. Cooperation spans trade and investment, agriculture, pharmaceuticals, digital public infrastructure (DPIs), energy, critical minerals, science and technology, and capacity building. These areas align closely with India’s domestic growth objectives and Latin America’s resource endowments and development needs.

Trade footprint in Latin America

According to data from the Ministry of Commerce and Industry’s Latin America and the Caribbean (LAC) Division, India’s trade with Latin American countries (excluding Mexico, which is classified under the ministry’s North America portfolio) stood at US$35.73 billion in FY 2023-24. This included exports of US$14.50 billion and imports of US$21.23 billion, resulting in a trade deficit driven largely by resource imports.

The upward trajectory continued in FY 2024-25, with total bilateral trade rising to US$39.21 billion. Exports increased to US$15.17 billion, while imports expanded more sharply to US$24.04 billion, underscoring India’s growing reliance on Latin America for raw materials and intermediate inputs.

Source: Department of Commerce, Ministry of Commerce and Industry, GoI.

During the first nine months of FY 2025-26 (April–December), total trade reached US$17.98 billion, comprising exports of US$7.08 billion and imports of US$10.90 billion. While these figures represent a partial-year snapshot, they indicate the continued importance of Latin America as both an export destination and a source of critical imports.

The composition of trade remains broadly complementary. Latin American economies are key suppliers of ores, minerals, metals, energy inputs, and agricultural commodities, whereas India’s exports to the region are concentrated in engineering goods, pharmaceuticals, chemicals, automobiles, and textiles. As India seeks to diversify export markets while securing reliable access to industrial inputs, this trade structure provides a strong economic rationale for deeper engagement with the region.

Overall, India’s trade profile with Latin America supports a dual strategic objective: expanding market access for Indian manufacturing exports while strengthening supply-chain resilience through access to resource-rich economies.

Trade composition and strategic rationale

India-Latin America trade remains largely complementary. Latin American economies supply ores, minerals, metals, energy inputs, and agricultural commodities, while India exports engineering goods, pharmaceuticals, chemicals, automobiles, and textiles. This structure supports India’s dual objective of expanding export markets for manufactured goods while strengthening supply-chain resilience through access to resource-rich economies.

Advancing trade negotiations with key partners

India has intensified its trade diplomacy in Latin America by advancing negotiations with key partners and exploring new engagement tracks. These efforts reflect a broader strategy to deepen economic ties amid shifting global trade dynamics and rising tariff and regulatory pressures.

Progress with Peru

India and Peru concluded the ninth round of trade agreement negotiations in Lima from November 3 to 5, 2025. Discussions covered trade in goods and services, rules of origin, customs procedures, and dispute settlement mechanisms, with particular emphasis on cooperation in critical minerals.

Advancing CEPA talks with Chile

Engagement with Chile also progressed during 2025. India completed the third round of Comprehensive Economic Partnership Agreement (CEPA) negotiations in Santiago from October 27 to 30, 2025, followed by a fourth round concluding on December 5, 2025. Officials indicated that negotiations achieved substantive progress across several chapters, signaling momentum toward a deeper trade framework.

In parallel, India has initiated a new engagement track with Mexico, indicating a broader effort to expand its trade footprint across the region.

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Business entities and corporate linkages between India and Latin America

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Commercial ties between India and Latin American countries have strengthened steadily, supported by growing two-way investments and the expanding presence of multinational enterprises from both regions. While outcomes have varied across sectors and markets, business engagement increasingly reflects strategic alignment in energy, manufacturing, technology, pharmaceuticals, and critical minerals.

Latin American business operations and investments in India

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Several companies from Latin America have built a presence in India, especially across energy, transportation, agribusiness, and consumer-oriented sectors. Business engagement from the region has further deepened through institutional initiatives. In 2024, LIDE, Brazil’s principal business leadership organisation, established its first office in India, signalling a more coordinated effort to advance bilateral trade and investment.

Source: Department for Promotion of Industry and Internal Trade (DPIIT), GoI.

Other companies from the region, such as Bimbo (food products), and Codelco (Chile, copper supply) have also engaged with the Indian market, either through investments, partnerships, or long-term supply arrangements.

Indian companies business operations in Latin America

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Enterprises have steadily strengthened their presence across Latin America, positioning the region as a strategic destination for outward investment. Spanning energy, manufacturing, technology, pharmaceuticals, and critical minerals, Indian companies are leveraging Latin America’s resource base, market access, and trade linkages to support global expansion strategies.

Diversified industrial investments

India’s multinational conglomerate Aditya Birla Group stands out as the largest Indian private-sector investor in the region. Through acquisitions in Brazil, the group has built substantial operations in aluminum, carbon black, and viscose yarn, establishing global leadership positions in several industrial segments and embedding itself deeply within Latin America’s manufacturing ecosystem.

Energy and critical resources

In the energy sector, India’s Reliance Industries has pursued hydrocarbon interests in countries such as Peru and Colombia, while remaining a major importer of crude oil from Latin America. India’s focus on securing critical minerals has further accelerated investment activity.

Technology and services hubs

Indian IT and digital services firms have built a strong operational base in the region. Companies such as TCS, Infosys, Wipro, HCL, and Tech Mahindra operate delivery centres in Mexico and Brazil, serving local clients while using these locations as nearshore hubs for North American markets.

Healthcare and pharmaceuticals

Pharmaceutical majors from India, such as Sun Pharma and Dr. Reddy’s Laboratories, have invested in manufacturing and distribution facilities across Latin America. These investments support regional healthcare supply chains and enhance access to affordable medicines.

Manufacturing and automotive value chains

In terms of manufacturing, companies such as RSB Transmission and JK Tyre have established facilities in Mexico, taking advantage of the country’s integration with US supply chains. These investments allow Indian manufacturers to participate directly in global automotive value chains while serving both regional and export markets.

Latin America in India’s south-south cooperation strategy

India increasingly views Latin America and the Caribbean (LAC) as integral to its South-South cooperation framework. Engagement with the region’s priorities shared development goals, Global South concerns, and collaboration through regional and multilateral platforms such as the Community of Latin American and Caribbean States (CELAC), Caribbean Community and Common Market (CARICOM), and Sistema de la Integración Centroamericana (SICA).

India has positioned itself as a reliable development partner by offering capacity-building programs, digital governance solutions, and cooperation in healthcare and disaster management.

Strengthening diplomatic presence and political engagement

India’s diplomatic outreach in the LAC region has gained momentum. The opening of India’s embassy in Bolivia, alongside the establishment of resident missions by Honduras and St. Kitts and Nevis in New Delhi, underscores growing mutual interest in closer ties. Increased high-level political interactions have further reinforced diplomatic coordination and policy dialogue.

The government continues to review proposals for opening additional Indian missions in countries where India lacks resident representation, with the objective of supporting trade, political engagement, and India’s broader foreign policy priorities.

High-level visits have played a central role in advancing bilateral and regional engagement. The Indian prime minister’s participation in the second India-CARICOM Summit in Guyana on November 20, 2024, combined with bilateral visits to Trinidad and Tobago, Argentina, and Brazil between July 2 and 9, 2025, strengthened India’s engagement with South American and Caribbean partners. These efforts were reinforced by incoming visits from the Prime Minister of Jamaica and the Presidents of Chile and Paraguay.

Indian diplomats have also maintained active engagement with the region through visits to multiple LAC countries and participation in regional and multilateral forums.

Outlook

With expanding trade ties, advancing negotiations, stronger diplomatic presence, and deeper sectoral cooperation, India-Latin America relations are entering a more mature and strategic phase. As India seeks to diversify export markets, secure access to critical resources, and advance Global South priorities, Latin America is set to remain a key partner in India’s long-term economic and foreign policy strategy.

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