In order to capitalise on the lull in trade between the US and Latin American countries, the commerce ministry has proposed to open up four to five trade centres in a few LA countries on a permanent basis, to create awareness among investors and business people alike on Indian products, technologies, manufacturing and R&D capabilities, apart from promoting bilateral relations between Indian and LA corporates in a big way, said Suchismita Palai, director, department of commerce, commerce ministry.
A recent by CII, ‘Augmenting synergies in the post-crisis world’, released in Chennai on Tuesday, said India and Latin American countries have the potential to treble their bilateral trade from the 2007-2008 level of $12 billion to $36 billion by 2012-2013, with a compounded annual growth rate of 25% at a relatively modest pace. The study also cited long distances and complicated sea routes, cultural and language difficulties and the frequent fluctuation of Latin American currencies as the primary reasons for low trade, compared to China which deals in trade worth over $140 billion.
Suchismita Palai, at the sidelines of a seminar on ‘Indo-LA synergies’ on Tuesday , said, “We are currently working with Indian ambassadors to create trade centres in places such as Sao Paulo, Santiego, Bones Aires and Port of Spain and in another place in some other country. We have also asked the embassies to identify places to set up the trade centres to help Indian corporates showcase their products and R&D capabilities and increase their exports to LA countries.”
The government is also planning to set up help desks across India like Bangalore and Hyderabad to provide valuable information on the LA countries, including data on population, potential areas for investments, exports opportunities, challenges apart from helping in promoting businesses between both the countries, she said. “These help desks would function like call centres to provide all kinds of information about LA,” she added.
A separate portal would be soon created to provide end-to-end details about each of the LA countries to benefit both importers and exporters from India. “The portal will be upgraded frequently on the developments taking place in the LA countries. The portal will also serve as a catalyst to business match making, she added.
Some of the sectors which can display their products and capabilities in these trade centres include light engineering, auto ancillaries, gems and jewellery and textiles. “There is a sense of urgency set in our department The ministry has set an agenda to focus on LA countries. We have set an internal target to treble our trade with LA countries and we are working with various chambers, associations, trade bodies and stakeholders considered to do so,” she said.
source: Financial Express
