FIVE FOLD INCREASE IN INDIA'S TRADE WITH LATIN AMERICA
India’s total
trade with Latin America and the Caribbean (LAC) region is estimated
to have registered a five-fold increase in the span of a decade
– from US $ 481.79 million in 1992-93 to US $ 2681.28 million
($ 2.6 billion) in 2002-03. India’s exports to this region have
gone up from US $ 165.55 million in 1992-93 to US $ 1636.36 million
($ 1.6 billion) in 2002-03, thereby registering an increase of
888.43%.
Latin American
and Caribbean (LAC) region comprising 43 countries accounts for
about 5% of the world trade. But India has not been a significant
trading partner of this region. Though there is much scope for
enhancing two way trade between India and the LAC region, the
volume of trade has also been low, besides the share of India’s
exports to the region having been minuscule. However, there is
a trend and potential for growth, as seen in the continuously
rising trend in exports to the region in recent years.
Considering the
potential that the region offers, an integrated programme "Focus:
LAC" was launched in November, 1997 by the Commerce Ministry.
This programme is aimed at sensitising the organisations viz.
Export Promotion Councils, Chambers of Commerce & Industry,
Exim Bank and ECGC, which are involved in India’s trade promotion
efforts. Various incentives and export promotion measures have
been designed and incorporated in this programme, out of which
double weightage under textiles quota policy, enhanced support
from MDA for sales tours, participation in fairs/exhibitions,
market surveys, etc., and a scheme for giving awards to best performers
in exports to the LAC region have also been drawn up. The programme
has been extended upto March, 2004 in order to consolidate the
gains of the previous years and significantly enhance India’s
trade with the Latin American region. The main objective is to
increase interaction between the two regions by identifying areas
of bilateral trade and investments.
Data on India’s
trade with Latin America (1992-93 to 2002-03)
(Value in US$ million)
|
YEAR
|
EXPORT VALUES
|
EXPORT GROWTH(%)
|
IMPORT VALUES
|
IMPORT GROWTH(%)
|
TOTAL TRADE
|
BALANCE TRADE
|
|
1992-93
|
165.55
|
33.08
|
316.24
|
-9.45
|
481.79
|
-150.69
|
|
1993-94
|
241.53
|
45.90
|
319.15
|
0.92
|
560.68
|
-77.62
|
|
1994-95
|
358.43
|
48.40
|
780.17
|
144.45
|
1138.60
|
-421.74
|
|
1995-96
|
368.07
|
30.59
|
592.37
|
-24.07
|
960.44
|
-224.30
|
|
1996-97
|
478.74
|
30.06
|
593.71
|
0.23
|
1072.45
|
-114.97
|
|
1997-98
|
699.83
|
46.18
|
580.42
|
-2.24
|
1280.25
|
119.41
|
|
1998-99
|
611.31
|
-12.64
|
730.69
|
25.89
|
1342.00
|
-119.38
|
|
99-2000
|
652.46
|
6.73
|
936.74
|
28.19
|
1589.20
|
-284.28
|
|
2000-01
|
978.42
|
50.47
|
707.71
|
-22.71
|
1705.80
|
257.78
|
|
2001-02
|
1455.71
|
48.78
|
988.73
|
39.70
|
2455.44
|
465.98
|
|
2002-03
|
1636.36
|
12.40
|
1044.92
|
5.68
|
2681.28
|
591.44
|
