India-South America Tango: New Delhi Must Expand Ties With Brazil, Argentina, Chile & Others

It began with the visit of Gabriel Boric Font, President of Chile in April followed up by Santiago Peña Palacios, President of Paraguay in June and the recent trip of Geraldo Alckmin, Vice President of Brazil. 

Alckmin was accompanied by Brazilian Defence Minister José Múcio Monteiro Filho along with others. The trip was particularly important as it has laid the ground for Brazilian President Luiz Inacio Lula da Silva’s visit to India in February. 

Lula’s upcoming trip can be historic in the context of South-South cooperation and in the backdrop of weaponization of tariffs. Next month Brazil will host the 30th UN climate conference where a senior Indian representative is expected to attend the meet.

India-South America Economic Engagements

Interestingly, in June and July Prime Minister Narendra Modi visited Argentina and Brazil-- South America’s two most powerful economies. Besides these two countries not many are aware that Chile has witnessed consistent economic growth for the last 30 years and deepening ties between Santiago and New Delhi will be crucial. 

Yet the partnership between India and South America where most countries have vibrant democracies remain untapped notwithstanding the complementarities in respective economies. 

While distance has and will always remain a factor between the two entities, geo-economics demand that India and South America look at expanding cooperations. 

China has defeated geographical barrier and made economic inroads into the continent that this has powered Beijing’s growth, even serving as a key pillar of food security. 

It is important to note that South America remains free of conflicts and is largely immune to terror attacks at least until now and therefore can play a key role in India’s supply chain in rare earth, critical minerals, fossil fuel, biofuel, uranium, gold, key food items and even defence hardware. 

Joint ownership of mines and defence industry projects could be win-win proposition for both sides. Simultaneously, due to its geographical proximity to the US, Indian IT giants can consider expanding their footprints in the continent which may help them to serve the American market. 

India-Brazil Ties

Brazil, a founder of BRICS and IBSA, a forum that brings together India, Brazil and South Africa is a pillar of the Global South. Importantly, it is now transforming its partnership with India based on reliability and trust. 

Yet this is just the beginning of what seems to be a promising and enduring relationship. Lula has had special sentiments for India and this is an opportune moment for both sides to cash in backdrop of the current flux in geo-economics. 

While Brazil has historically punched below its weight in geo-politics, it has been able to emerge as a key global player in food security, energy security and has even created a signature product in airlines – Embraer. 

This aircraft is widely used by various airlines across North America and Europe and the Indian civil authorities should give a serious consideration to use Embraer for domestic routes. The icing on the cake could be an MRO (maintenance, repair and overhaul) centre for Embraer in India that can also serve requirements of third countries. 

Similarly, Brazil and India could work out long term arrangements for fossil fuel and defence industry supply chains, which is unlikely to face disruptions due to the fact that the South American nation has remained largely stable without any conflict. 

It is not just geoeconomics that should drive India-Brazil partnership but as the world moves towards multipolarity, both countries -- pillars of the Global South, should push for global reforms without hegemonistic tendencies and expand collaboration even in third countries to push development. 

Both as members of G20 can also play a constructive role in the group that have had sharp internal differences including on the Ukraine war. 

India-Argentina Ties

Neighbouring Brazil, India’s ties with Argentina is also witnessing a transformation. A country endowed with immense natural resources Argentina can power India’s growth. Argentina can become an energy security provider to India which has an endless demand for energy to fuel its economic growth. 

The South American country is one of the main providers of soyabean oil and sunflower oil to India. Argentina has one of the most important gas reserves in the world (talking of the gas field of “Vaca Muerta” in the southern state/province of Neuquen) and is ready to meet growing energy demands. 

Recently, Argentina even announced that it will allow Indians holding valid US visas to enter the country, a move that will promote businesses and tourism. 

India is now partnering with Argentina to secure lithium by investing in exploration and mining in the Catamarca province. 

New Delhi is also eyeing to import lithium, copper and rare earths from both Peru and Chile. 

During the visit of Chilean President to India earlier this year, Modi and the visiting leader agreed to accelerate collaboration in exploration, mining and processing along with research and development to promote investment across the entire critical mineral value chain. Both sides are keen on building trusted and resilient supply chains including for critical minerals and advanced materials. 

As the South American continent makes move to diversify and reduce dependence on Chinese market, Indian businesses must seize the opportunity. This will help New Delhi’s plans in reducing dependence on one source or one market. The businesses should be adequately supported by the Centre. The continent is sitting on mines of opportunity ready to be cashed in.   

(The writer is a commentator of geopolitics and geoeconomic affairs. Views are personal.)