MercoPress. South Atlantic News Agency

India reports Argentina's interest in Indian fighter aircraft, bilateral trade in local currencies and BRICS

Indian minister of external affairs Dr. S. Jaishankar and his Argentine counterpart Santiago Cafiero at the San Martin Monument

Argentina has shown interest in buying India’s fully indigenous Tejas fighter jets, and on Saturday agreed to strengthen defense and trade ties with India. On that very day India’s External Affairs Minister Dr. S. Jaishankar and host minister Santiago Cafiero issued a joint press statement, according to a release from the New Delhi delegation visiting South America.

It said, “The Foreign Minister has acknowledged Argentina’s interest in the Indian-made Tejas fighter jets for the Argentine Air Force. He also highlighted the importance of this proposal in the strategic enhancement of bilateral relations. In particular, Argentina, besides, Australia, Egypt, USA, Indonesia and the Philippines have shown an interest in buying this light fighter aircraft which is manufactured by Hindustan Aeronautics Limited or HAL.

Read also: India sides with Argentina on Malvinas Question, calls for negotiations

In addition, the two countries also agreed to “request their respective central banks to develop a mechanism to practice how to make payments in local currency”. Its purpose is to facilitate trade between the two countries without using the US dollar or any other third-party currency system. Incidentally, the whole world is now showing interest in using local currencies instead of dollars for trade. In the past, Iran and Russia have used taka-real and taka-rouble systems for trade. Last July, the Reserve Bank of India allowed international trade in the Indian rupee.

Indian Foreign Minister SG Shankar is currently on a visit to South America. During the visit, he also held a joint commission meeting with the foreign ministers of Brazil, Paraguay and Argentina. He inaugurated the premises of the newly established Indian Embassy in Paraguay. This is SG Shankar’s first visit to South America. Argentina also extended its support for Argentina's India’s membership in the enlarged BRICS group. Argentina supported India’s membership of the Nuclear Suppliers Group as well as India’s chairmanship of the G20 group.

On the other hand, India has supported the demand to resume talks to find a solution to the sovereignty issue of Malvinas or Falkland Islands. Notably, in April 2022, Argentina launched a “Commission for Dialogue” with the UK in India. The Foreign Minister of Argentina launched the Commission, which called on the shared anti-colonial heritage, values, and traditional support for resolving the territorial dispute.