Export-Import Bank of India (India Exim Bank)’s study titled “India’s Economic Footprint in LAC: Trade and Investment Patterns and Opportunities” was released on May 22, 2026 by Mr. Manuel Ochipintti, President of Banco Nacional de Fomento (BNF), Paraguay and Mr. Edgardo Alvarez, Secretary General, ALIDE, in the presence of Mr. Biswajit Garg, Exim Bank’s Resident Representative to LAC Region, at the General Assembly of the Latin American Association of Development Financing Institutions (ALIDE) 2026, held in Paraguay. The release underscores the Bank’s commitment to forging a long-term, mutually beneficial partnership with Latin America and the Caribbean (LAC) countries, anchored in trade, investment, and development cooperation.
LAC countries are at an important juncture, with merchandise trade reaching US$ 2.9 trillion in 2024, expanding steadily over the past decade despite global headwinds. The region’s resilience is reflected in efforts to deepen regional integration, diversify beyond commodities, and strengthen macroeconomic fundamentals. With rich natural resources, a growing and increasingly skilled workforce, and a stronger focus on sustainability and innovation, LAC is well placed to drive long-term, inclusive, and green growth in partnership with India.
India-LAC ties are entering a new phase, with commodity-based engagement giving way to diversified, innovation-led, and climate-compatible partnerships. India’s trade (both merchandise and services) with the LAC region have steadily deepened over the past decade, characterised by complementarity and growing interdependence. India is also expanding its financial footprint in Latin America.
The study underlines that LAC’s sectoral strengths in agriculture, mining, energy, automotive, pharmaceuticals, and services offer strong complementarities with India’s development priorities and industrial capabilities. It identifies significant opportunities for Indian firms in critical minerals (lithium, copper, and other strategic metals), renewable energy and green hydrogen, agribusiness and agritech, digital and financial technologies, and infrastructure, including ports, logistics, and public–private partnerships.
The study recommends a multi-pronged strategy to strengthen India-LAC economic engagement. First, India could deepen market access by targeting comprehensive or sector-specific trade agreements with LAC countries/Groupings, and pursue enhanced regulatory cooperation, including Mutual Recognition Agreements (MRAs) and joint working groups to reduce non-tariff barriers. Second, improving connectivity is critical and can be achieved by leveraging global shipping networks, developing warehousing and logistics partnerships in LAC, and strengthening domestic infrastructure to reduce transport costs.
Third, India may consider taking membership in development finance institutions in LAC to unlock project export opportunities and secure critical mineral supply chains. Fourth, greater value chain integration is needed through sector-focused export strategies, joint manufacturing partnerships in key LAC markets, and targeted support for SMEs, including financing, logistics, and e-commerce facilitation. Overall, the recommendations emphasise enhancing trade architecture, logistics efficiency, institutional presence, and supply chain integration to unlock the full potential of India–LAC economic ties.
By presenting a comprehensive assessment of trade, investment, and sectoral opportunities, the study aims to serve as a roadmap for policymakers, development finance institutions, and businesses in India and LAC to deepen their engagement and build a resilient, inclusive, and sustainable economic partnership.
