Narendra Modi's Brazil visit to push trade ties with Latin America

NEW DELHI: South America has not been the favourite destination of most Indian leaders. The common ideological tilt during the 1950s through 1970s notwithstanding, ties between India and the far-off continent did not take off until very recently.

Gujarat has been spearheading the transformation in the relationship. As Gujarat chief minister, Modi first met South American ambassadors and businessmen in Gandhinagar in 2012 and again the year after in Delhi. Prime Minister Modi's upcoming visit to Brazil in July for BRICS Summit is expected to give further impetus to trade diplomacy between the two growing regions.

Gujarat accounts for over 60% of India's trade with South America comprising mostly oil, chemicals and pharmaceuticals, according to officials. Last year, the Jamnagar refineries of Reliance Industries and Essar Oil imported $22 billion of crude oil from Venezuela, Mexico, Brazil, Colombia and Ecuador and exported diesel worth $3.3 billion to Brazil. Gujarat-based businessman Gautam Adani's import of edible oil was India's third largest import from South America. Adani has interests in Brazil and Argentina's agriculture sector, and his group also imports coal from Colombia. The total trade between India and South America amounted to $41 billion in 2013. Jamnagar's imports from South America are going to increase given India's energy needs, people familiar with the matter said.