PM Modi arrived in Argentina in the third leg of the five-nation trip on July 5th. This is the first bilateral visit by an Indian Prime Minister to the country in 57 years. PM Modi last visited Argentina in 2018 for the G20 Summit. On his arrival in Buenos Aires, the City Chief conferred PM Modi with the Key to the City of Buenos Aires.
Trump’s erratic trade tariffs and Europe’s carbon tax
hurdles have forced nations to realign and diversify their supply chains. PM
Modi’s five-nation trip spanning the global south attempts to chart a new
course by rediscovering shared values to forge economic partnerships with
resource-rich nations.
Irrespective of the leadership at the helm of affairs,
business and trade have largely driven the course of the India-Argentina
relationship. India is the fourth-largest trade partner of Argentina. India
accounts for 90% of Argentina’s Soybean oil exports.
After the Ukrainian war, India has routed its sunflower oil
imports from Argentina. Now, vegetable oils account for more than 50% of
India-Argentina bilateral trade, which reached $5.2 billion in 2024. The trade
peaked at $6.4 billion in 2022 but subsequently dropped due to drought in
Argentina. As per reports, the first quarter of 2025 recorded a 53.9% increase
in trade. Other major exports of Argentina include finished leather, cereals,
pulses, residual chemicals and allied products. Two-wheelers are one of the
major exports of India to Argentina, and pharmaceuticals, textiles are next in
line. Indian investments in Argentina, valued at over $1.2 billion, include
Mphasis, TCS, Comviva, Infosys, Bajaj Motorcycles, TVS, Royal Enfield, Hero
Motors, and Godrej. Conversely, Argentinian investments in India stand at $120
million, comprising Globant, OLX and TECHINT.
Argentina has the World’s second-largest shale gas reserves
and third-largest shale oil reserves and is part of the Lithium triangle, the
other two being Bolivia and Chile. In February 2023, India and Argentina signed
agreements to promote cooperation in oil and natural gas.
For the first time ever, India’s KABIL (Khanij Bidesh India
Limited) inked a deal with Argentina’s CAMYEN (PSU in Catamarca province) to
lease five lithium blocks for mining and exploration in January 2024. In
February 2025, KABIL concluded another MoU with Argentina’s Greenco for five
Lithium blocks. Other than mineral and energy cooperation, India and Argentina
have ramped up defence and nuclear cooperation. India’s Hindustan Aeronautics
Limited (HAL) and the Argentine Air Force sealed the first commercial agreement
for the supply of helicopter spares and engine maintenance. In November 2024,
the Heavy Water Board of India signed a four-year agreement for the supply of
heavy water with Nuclear Electric Company of Argentina (NASA).
Amid growing India’s energy needs and China’s weaponisation
of rare earth minerals, Argentina which also has significant copper reserves could
serve as a crucial, reliable partner. After the warm welcome at Casa Rosada
Palace, leaders, PM Modi and President Javier Milei reviewed the entire range
of bilateral cooperation and decided to diversify and expand the trade basket.
To realise this, India sought Argentina’s support in
expanding the India-MERCOSUR Preferential Trade Agreement (PTA) signed in 2004
and which came into force in 2009.PTA, which is less comprehensive than FTA,
removes tariffs on a limited number of goods. MERCOSUR, the fourth largest
trade bloc globally behind the European Union, North American Free Trade
Agreement (NAFTA) and the Association of South East Asian Nations (ASEAN).
MERCOSUR include Argentina, Brazil, Paraguay and Uruguay.
To explore vital opportunities in health care and pharma, PM
Modi discussed the possibility of moving India from Annexure II to Annexure I
of Argentina's Pharmaceutical Regulatory Framework to expedite the entry of
life-saving, affordable Indian pharmaceuticals into the Argentine market.
ISRO launched Argentina’s first space satellite in 2007. In
2023, ISRO and Argentina’s CONAE signed several outer space cooperation
framework agreements. Seeking to steadily elevate the defence partnership,
Argentina's Defence Minister made the first-ever bilateral visit to India in
2023. This was preceded by two trips by the Argentine Air Force commander and
the Argentine Armed Forces chief in 2022 to HAL. After decommissioning the
Dassault Mirage fleet in 2015, Argentina is looking a replacement and India’s
LCA Tejas jet was in contention. Argentina has also expressed interest in
BrahMos.
India and Argentina traditionally support each other in
research and logistical support in Antarctica, especially Bharati and Maitri
(India’s permanent research stations in Antarctica) and cooperate in the UN
peacekeeping missions. Besides strengthening space collaboration, countries are
exploring avenues in telemedicine, digital health solutions, capacity building,
agriculture and food security, green energy, science and technology and
people-to-people linkages. Yoga and Ayurveda are very popular in Argentina.
Though separated by oceans, countries share democratic
values and share inclusive, global development vision and hence are natural
partners. India welcomed Argentina to join the India-led International Big Cat
Alliance (BCA). Argentina backs India’s permanent membership to an expanded
UNSC and is counting on India’s support for the resumption of negotiations with
the UK on the Malvinas Islands dispute. Argentina, which strongly condemned the
Pahalgam attacks, adopts a tough stance on terrorism. Argentina faced two
brutal terror attacks- the 1992 Israeli Embassy bombing and the 1994 AMIA
Jewish Centre bombing in Buenos Aires.
President Milei showed great interest in India’s Drone Didi
initiative in improving agricultural production and usage of drone technology
for conservation of fauna, animal husbandry, surveillance of high-tension power
transmission and discussed the possibility of using drone to tackle IUU
(Illegal, Unregulated and Unreported) fishing especially in Argentina’s
Exclusive Economic Zone (EEZ). Cooperation in digital Infrastructure, building a
startup ecosystem and sports also featured in the talks.
PM Modi’s visit to Argentina comes at a time when the
country is going through a phase of pathbreaking economic reforms. President
Milei, known for his radical approach and kick-named ‘anarcho-capitalist’, is
endeavouring to revive the economic outlook of the country through legislation-
Large Investment Incentive Regime or RIGI, offering tax breaks for investments.
This legislation has increased energy investments, steering the shale oil and
gas production. Consequently, Argentina has transitioned from being an energy
importer to an exporter.
Impelled by the geopolitical uncertainties, plunging foreign
reserves and rising inflation, Argentina directed energy investments towards
the lucrative shale patch, Vaca Muerta. Asserting ‘resource nationalism’, President
Milei is boldly tapping into the natural resources to resurrect the economic
fortunes of Argentina.
India and Argentina elevated relations to a ‘strategic
partnership’ in 2019 during President Mauricio Macri's visit. Latin America
offers huge potential for economic opportunities. Interestingly, the word
‘strategic’ is largely attributed to India’s relations with influential
countries. But in the era of diversification, interconnectedness, to meet its
growing needs, India must forge ties with countries far and distant.
Latin America, though geographically distant, shares several
commonalities in terms of world vision and similar challenges like food
security, climate change, reliable supply, cybersecurity, and terrorism. As the
World transitions into Industrialisation 4.0, countries require critical
mineral elements to build modern technologies and infrastructure for the large-scale
launch of Artificial Intelligence and Machine Learning. India can’t afford to
lag in this technological evolution. In tandem with its aspirations to build a
scientifically advanced economy, India must ensure a steady supply of critical
resources. India must widen its horizons
and build reliable partnerships with countries.
Besides being developing countries, the global south
identity also binds India and Argentina. High-profile visits between countries
in recent times have laid the ground for building a pragmatic relationship. PM
Modi’s historic visit to Argentina signals India’s readiness to deepen the
expanding economic partnership.
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