In early July Prime Minister Narendra Modi concluded a five-nation visit. During this marathon tour, Modi visited Ghana, Trinidad and Tobago, Argentina, Brazil and Namibia. Not only was this visit important from the perspective of outreach to the Global South, the choice of countries indicates effort on the part of the Indian government to increase engagements with the countries with which India has had scarce interaction.

This article focuses on Modi’s visit to Argentina and Brazil and how this diplomatic engagement is an important step forward in India’s relations with Latin America.

India’s ties with the Latin American countries have commonly been defined by tyranny of geography, implying the long distance between the two has been the principal cause of the under-developed relations. Even as the India-Latin America ties continue to be in emerging stage, the current trip by Modi underscored a continuity and an advance in the relations.

The continuity factor was that despite limited contacts, India and the Latin American countries engage regularly through multilateral platforms like the BRICS and the G20. Modi’s visit to Brazil in July carried forward this phenomenon in the India-Latin America ties. This was Modi’s fourth visit to Brazil since taking office as prime minister in 2014. Previously Modi had visited Brazil in 2014, 2019 (for BRICS Summit) and in 2024 (for G20 Summit). The recent visit was too for participating in the 17^th BRICS Summit. But Modi also chose to conclude a bilateral visit following the summit. Similarly Modi had previously visited Argentina in 2018 for G20 Summit.

Outside of the BRICS and G20 India has a long standing Preferential Trade Agreement (PTA) with MERCOSUR (Mercado Común del Sur – Southern Common Market), a trade bloc of South American countries of which Argentina and Brazil are members. India’s PTA with the MERCOSUR came into effect in 2009. India recently concluded a Free Trade Agreement (FTA) with the United Kingdom and the discussions on a similar trade deal are in progress with the United States and the European Union. India would also like to consider an FTA with MERCOSUR for greater economic cooperation with the Latin American countries.

However for a stronger development of bilateral ties, regular high-level engagements between Heads of State or Heads of Government are necessary. The recent visit by the prime minister to Argentina and Brazil seemed to emphasize on this factor as well. By travelling to Argentina, Modi became the first Indian prime minister to visit the Latin American country on a bilateral visit in 57 years. Modi’s visit to Brazil was also the first bilateral visit by an Indian Prime Minister in again 57 years.

Argentina and Brazil are among the economic powerhouses of Latin America. These two countries are among the six largest markets in the region with Argentina leading in agriculture, food processing and automotive sector while Brazil dominating in agriculture, manufacturing and mining.

Argentina and Brazil share India’s vision and strategies on multiple aspects. Both the Latin American countries have tries to steer clear of the Russia-Ukraine conflict and have avoided a knee-jerk reaction to the crisis. Buenos Aires and Rio de Janeiro, like New Delhi, have resisted the West’s insistence on isolating Russia. Instead, just as India has maintained cordial ties with Russia; Argentina and Brazil too have continued with their engagements with Russia. The only difference is that the two Latin American economies have diversified their energy purchases by reducing dependence on Russia. Buenos Aires and Rio have now increased engagements with the Middle Eastern countries for energy supplies.

While fossil fuels still playing an important role in the economic activities, Argentina and Brazil are simultaneously working towards green transition. This is another shared strategy with India. The two South American nations’ plan to transition to green energy is backed by the abundance of natural resources that they hold. Argentina and Brazil hold large deposits of lithium and nickel and other rare earth elements that are critical to electrification of vehicles. In addition to rare earth elements, Argentina also has large reserves of shale gas which offers opportunities in the production of liquefied natural gas and hydrogen. For its part, Brazil is a leading country in wind and solar energy as well as green hydrogen.

For India, which is a leading voice at global level in the area of climate change and renewable energy, Argentina and Brazil, with their drive towards renewable energy and shift of electrification of transportation, are worthy partners. Being a strong advocate of Paris Climate Accord, for New Delhi, closer engagements in the area of renewable energy are most promising with Buenos Aires and Rio.

Prime Minister Modi’s visit to the Latin American countries promises a more focused approach from India towards a region which offers diverse opportunities in trade, agriculture, technology and climate change.