India-LAC investment conclave concludes
The India-LAC (Latin America and Carribean) investment conclave was held under the auspices of FICCI (Federation of Indian Chambers of Commerce and Industry) and Ministry of Commerce and Industry on October 16 and 17.
Objectives of the conclave
The objectives of the conclave are as follows:-
- Provide insights to LAC region industries on lucrative investment opportunities available in India
- Provide Indian industries insight into the LAC region to enable them to develop suitable strategies to penetrate the LAC region markets
- Facilitate partnerships between industries in the Indian and LAC region
- Enable government representatives from both regions to enhance economic engagement between India and LAC region.
Trade related issues
- The LAC region is set to grow by 3.5% to 4% over the next years. Some of the factors attracting investors to the LAC region are its net FDI flows of $189 bn in 2012, increased international trade and reduced inflation.
- In the backdrop of global economic recovery, India and LAC region are rethinking their strategy for engagement.
- India’s trade with the 33 countries of LAC region, has grown at an annual rate of over 25% over the last decade. The amount of trade reached US $ 46 bn in 2012-13. However, the LAC region has received only around 4% of India’s outward FDI, with an amount of US $ 16 bn. FDI form LAC into India is also very low.
The Indian government introduced the Focus LAC programme in 1997. This programme was meant to enable the Indian industry to target LAC markets for project exports, and export of industrial goods and services.