MercoPress. South Atlantic News Agency

Indian commerce chambers underline Mercosur business opportunities

Mercosur exports to India are mainly commodities

The potential for expanding trade and investments with Mercosur was underlined by the Federation of Indian Chambers of Commerce and Industry, Fecci, following on last month’s visit to the region by a delegation of Indian business people.

“Looking at the large size of the Indian and Mercosur economies, both have a lot to offer to each other. Both sides are now discussing expansion and deepening of the PTA. The PTA with Mercosur is also expected to open new markets for India” according to Fecci officials quoted in the Indian press.

Besides the opportunities of investments in land in Mercosur countries, business deals in the areas of organic farming and edible oil are likely to fructify for India, said Fecci in a report to its members.

“In the electronics, machinery, chemicals and textiles sectors, there are ongoing discussions between India and Mercosur counterparts for business tie-ups and distribution arrangements. Potential business and technological collaboration opportunities in other sectors like pharmaceuticals, biotechnology, Information Technology, etc are also being pursued,” senior Ficci officials who were part of the business delegation that visited Mercosur countries last month.

The visit was organised in the backdrop of India-Mercosur Preferential Trade Agreement that became operational from June 2009. About 15 Indian delegates representing diverse industrial sectors participated in the delegation besides representatives of Indian companies based in Mercosur countries.

India's trade with Mercosur countries was 6.9 billion US dollars during 2009-10. India's major exports to Mercosur currently are drugs, pharmaceuticals and fine chemicals, transport equipment, inorganic/organic/agro chemicals, cotton yarn & cotton and manmade fabrics, made-ups, readymade garments, dyes, intermediates and coal tar. Major imports from Mercosur currently are edible oils, metallic ores, metal scrap and non-electrical machinery, with soy bean oils comprising by far the largest export (around two-thirds of all exports).