Scindia stresses need to tap Latam, Caribbean markets.

New Delhi, April 29 Mr Jyotiraditya Scindia, Minister of State for Commerce and Industry, said that even as the emerging markets are growing at a healthy 4 per cent compared with 0.5 per cent growth in the developed markets, India should look to diversify its geographical reach and export to the Latin America and Caribbean (LAC) region.

Addressing the Confederation of Indian Industry (CII): India-Latin America and Caribbean Conclave, he said, “Even among the LAC, the bulk of Indian exports go to Brazil while several other major LAC countries such as Mexico, Argentina, Peru, Chile and Uruguay have remained majorly untapped.”

Product diversification

Mr Scindia emphasised on broadening the export basket. As of now, precious, semi-precious stones, light engineering, pharmaceuticals and mineral products account for the bulk of Indian exports to the region, but they do not represent the strengths and capabilities of the Indian economy in its entirety.

In this, biofuels promotion has a key role. He referred to the case of Brazil which has successfully developed and promoted bio-fuels for widespread domestic use. He also said that the LAC region, in particular the Mercosur countries (comprising Brazil, Argentina, Uruguay and Paraguay), are poised to become global agriculture outsourcing hubs.

This would open up fresh opportunities for Indian farm companies to enter into joint ventures with local players and look at mergers and acquisitions (M&A) there.

The Minister made a special mention of the potential of India-LAC cooperation in tourism and said that this industry will not only bring economic value but also will promote better cultural understanding between the two regions.

He concluded by saying that Indian technology and Latin American natural and social capital make a great fit. There is also great cultural compatibility between the people of the two regions which makes joint ventures and M&As sustainable business propositions.

Source : Business Line