India exports more to Latin American countries than to neighbors and traditional trade partners

India’s exports of 275 million dollars in 2024-25 (April 2024-March 2025) to the remote Honduras in Central America are more than the exports of 201 m to nearby Cambodia. The population of Honduras is just 10 million as against 17 m of Cambodia.

If you think this is incredible, here are some more:

India’s exports of 382 m to Dominican Republic are more than the 263 m to Kazhakstan.

Export of 635 m to Guatemala is more than the 614 m to Myanmar..

And more surprises…

Exports to Brazil (6.7 billion dollars) are higher than to the traditional trade partners such as Japan (6.25 bn), South Korea (5.82 bn) Vietnam ( 5.43bn)…..and neighbors such as Srilanka (4.55 bn), Indonesia ( 5.38 bn) and Thailand ( 4.8 bn) 

Exports to Mexico (5.75 bn) are more than the exports to Russia (4.88 bn), Canada (4.22 bn) and Egypt (3.41 bn).

This is not a one year wonder..This is the clear continuing trend in the last decade.

India was the 7th largest supplier of goods to Latin America  with 20.22 billion dollars in 2024. This is just 1.4% of Latin America’s total imports of 1.4 trillion dollars in 2024. There is scope to increase India’s exports to 50 billion dollars in the next five years. 

Motorcycles ride the wave of export boom to Latin America

India’s motorcycle exports to Latin America were 1.5 billion dollars, which is 46% of India’s total exports..

Mexico was #1 destination of India’s global export of motorcycles in 2024-25 with 390 million dollars..

Car exports

Car exports to Latin America were 1788 million dollars. This was 25 % of India’s global car exports of 7.24 bn dollars. 

 Major destinations: Mexico 938 m, Chile 257 m,  Peru 160 m, Panama 68 m, Colombia 75 m, Costa Rica 59 m, Guatemala 54 m and Ecuador 44 m.

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Pharmaceuticals

Pharma exports were 1.8 billion dollars.  

Major destination of India’s pharma exports:  Brazil 520 million dollars (up from 416 m last year), Mexico 198 m, Chile 212 m, Venezuela 177 m, Colombia 157 m, Peru 110 m, Guatemala 89 m, Dominican Republic 73 m and Ecuador 40 m.

India ranks as the 5th largest supplier of pharmaceuticals to Latin America, after US, Germany, Switzerland and Ireland. 

India is the # 2 supplier of pharmaceuticals to Peru, Dominican Republic and Guatemala….# 3 to Chile… # 5 to Honduras and El Salvador…# 8 fro Brazil, Mexico and Colombia.

Major exports

Vehicles     4.88 bn

Chemicals  3.3 bn

Pharmaceuticals    1.81 bn 

Machinery  1.73 bn 

Petroleum Products  1.17 bn                   

Iron and steel  884 m

Apparels 684 m

Textile fibers and filaments 422 m

Aluminum products  592 m               

Plastics   492 m 

Cotton  495 m  

Rubber products 434 m            

Imports 

Main import items: 

Crude oil  7.2 billion dollars

Raw gold.        7.06 bn  

Vegetable oil 3.74 bn 

Raw sugar 1.36 bn

Copper including concentrate   2.75 bn 

Machinery and equipment 855 m

Wood        548 m

Chemicals 436 m

Fresh Fruits 195 m

Cotton 182 m

Paper pulp 156 m

Pulses 170 m

Crude oil imports which reached a peak of around 15 billion dollars in 2013-14 has come down drastically due to US sanctions on Venezuela which had supplied 10 bn dollars of crude in 2013-14.

Main sources of crude oil imports: Colombia 2.18 bn, Mexico 1.58 billion dollars, Brazil 1.4 bn, Venezuela 1.58 bn and Ecuador 157 million

Raw gold import sourcing: Peru 4.46 bn (up from 2.8 bn last year), Colombia 834 m, Dom Republic 603 m, Argentina 466 m, Mexico 208 m, Bolivia 364 m (down from 1077 m last year), Chile 70 m Brazil 213 m,  and Brazil 46 m

Latin America is the main source of soy oil imports of India. Argentina is the #1 global supplier with 2.98 billion dollars (up from 1.9 bn last year), followed by Brazil 783 m. 

Brazil is the source of imports of raw sugar which India refines and reexports to other countries.

Chile, the main supplier of copper and other mineral concentrates from the region supplied 1.59 bn, followed by Peru 428 m and Colombia 103 m

Main suppliers of wood from the region:  Brazil 129 m, Uruguay 115 m, Ecuador 106 m, Panama 38 m,

Trade 2024-25

Figures in millions of US Dollars 

Trade from 2010-11 to 2024-25…figures in billions of dollars

Latin America is a large substantial market of 19 countries, population of 620 million and GDP of 6 trillion dollars with a per capita income close to 10,000 dollars. 

Latin Americans have started attaching more importance for trade with India, as part of their strategy to reduce over dependence on China and and to diversify from the protectionist Europe and US. 

India is the 5th largest destination for Latin America’s exports after US, China, Canada and Spain. This means India is more important than Germany, UK, France or Japan.

 Some suggestions for action to boost India’s exports

India should open embassies in Ecuador, Costa Rica, Honduras, El Salvador, Nicaragua and Uruguay. 

The commercial section of the embassies in the region should be strengthened with dedicated India-based and local officers with adequate budget. 

India should start negotiations for FTA with Mexico and Colombia, the 2^nd  and 3rd largest destinations of exports to Latin America. The ongoing FTA talks with Peru and Chile to be concluded soon. 

India should join as member of the Inter-American Development Bank to enable Indian companies to participate in the large infrastructure projects of the Bank. 

India should consider extending more lines of credit to the region. While China has given more than 150 billion dollars of credit to Latin America, India’s credit is not even one billion. 

China has over 60 Latin America study centres but India has just three.  The Ministry of. External Affairs should encourage and fund Latin America study centers to do research especially on Latin American markets and business opportunities.

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Latin America includes 10 countries in South America, 6 in Central America , 2 Spanish speaking Caribbean (Cuba and Dominican Republic) and Mexico.

Source of Statistics: Ministry of Commerce of India