Indian Firms Must Grab Chance To Expand Footprint In South America

While China has an early mover advantage in the continent, South America is dotted with countries rich in natural wealth, and a strong ethos of democratic principles, which has a natural connection with India. 

Areas open to Indian interests include critical minerals, oil and gas, defence industries, nuclear energy, agriculture, drones in agriculture, fisheries, and monitoring of power transmission lines, space, railways, pharmaceuticals, and sports.

Brazil & Argentina

Prime Minister Narendra Modi’s visit to Brazil and Argentina can go a long way in sealing a bond with this continent. India has already expressed interest in importing shale gas from Argentina, which has the world’s second-largest shale gas reserves and fourth-largest shale oil reserves, along with substantial conventional oil and gas deposits.

During his meeting with PM Modi, Argentine President Javier Milei showed particular interest in the use of drone technology in India. In fact, this area has been identified by both countries for possible collaboration in the near future. This could be music to the ears of Indian companies specialising in drone manufacturing.

The leaders discussed how this could be used to tackle IUU (illegal, unregulated, and unreported) fishing, especially with fishermen from other countries encroaching on the exclusive economic zones of Argentina. 

Meanwhile, Argentina and Brazil can serve as a springboard for Indian companies to enter the wider Latin American market, something that is now becoming an urgent need for companies here. 

Building on their burgeoning ties, India and Brazil have also agreed to explore the commercial and technological complementarities they share. Importantly, both countries have agreed to further collaborate through bilateral partnerships in the following key industrial sectors: (i) pharmaceutical industry; (ii) defence equipment; (iii) mining and minerals; and (iv) oil & gas. This would include extensive research, exploration, extraction, refining, and distribution. 

Chile & Beyond

But India's outreach is not just restricted to Brazil and Argentina. Chile presents a huge opportunity, especially in the mining of lithium and copper. Notably, Chilean President Gabriel Boric Font was on a state visit to India in April.

While this was his first visit to India, he and PM Modi had earlier met on the sidelines of the G20 Summit in Rio de Janeiro in November 2024. Boric, who stressed the need to explore strategies for enhanced and diversified trade between the two countries, underlined that India was a priority partner for Chile.  

The good thing is that the Indian industry is now willing to explore new sectors in new geographies, and is keen to expand its presence far and wide. They, however, must be nimble-footed in their approach and come up with a tailor-made approach for different continents.

To make maximum profit, they need to adjust their strategies according to local policies and requirements.