H. E. Evo Morales Ayma, the President of Plurinational State of Bolivia, hosted Indian President Shri Ram Nath Kovindin the first high-level visit between both countries, between both countries, in March 2019. Numerous issues of bilateral, regional and multilateral interest were deliberated upon. In addition to the consolidation of diplomatic relations, over issues of international peace and security, climate change, sustainability, tourism, health, development of modern infrastructure and so on, the economic relations between both countries provided a significant area of review and engagement.
Bolivia is the 8th largest trading partner for India in the Latin American region. Over the last two years, the trade between India and Bolivia has increased and in 2018, it was valued at US $875 million. India imports 60% of Bolivian gold. India ranked 3rd overall for Bolivian exports, valued at US $723 million in 2018, with imports from India standing at $571 million. During their discussion, both leaders emphasised upon the need to strengthen bilateral trade and diversify their trade baskets based on identification of sectors with untapped potential.
Post the delegation-level talks, eight Memorandums of Understanding (MoUs) were signed across the following: visa waiver for diplomats, exchange between diplomatic academies, establishment of Centre of Excellence in IT, mining, space and traditional medicine and culture. The possibility of the Indian Railways working with Bolivia for the construction of the Bi-Oceanic Railway project, linking the Atlantic and Pacific oceans was also explored. In addition to that, Bolivia became a part of the International Solar Alliance by signing the framework agreement.
There is mutual agreement to widen and deepen cooperation between Bolivia and India, by leveraging the immense opportunities across agriculture, trade and commerce, investments including commercial tie-ups, mineral resources,automobiles, pharmaceuticals and healthcare, solar and renewable energy along with other energy pathways, ICT and space, capacity building and technical cooperation, railways, highways, waterways, airways, education and culture.
The recognition of the need to tap into solar energy as a means of combating climate change led to the agreement to establish links of cooperation across the fields of geology and mineral resources, via the sharing of good practices and experiences as well as conducting joint activities. A joint gas exploration strategy will be executed to invest in the exploration and development of Bolivia’s immense hydrocarbon potential, for the broader purpose of energy integration.
Both countries will collaborate upon the exploration and extraction of the abundant lithium deposits in Bolivia. This will be crucial for India’s clean technology initiatives since lithium is required for making batteries, used in electric cars and so on. India expressed its interest in investing in the Bolivian lithium industry, in order to facilitate the development of lithium products using cutting-edge technologies from India. Joint ventures will be fostered to enable the establishment of battery production plants in India.
The possibility of exporting Liquefied Natural Gas (LNG) to India will be explored, in addition to the feasibility of laying a gas pipeline and establishing an LNG plant, on mutually agreeable terms. Both countries are also willing to develop projects for sharing experiences in space technology applications, use of satellite data in agriculture, protection as well as management of forests and water resources etc. India is keen to boost its exports to Bolivia in the pharmaceutical sector, given India’s global recognition in providing high quality medicines at affordable prices. This will enable Bolivia to achieve its healthcare goals.
In order to meet the needs of a flourishing knowledge economy and promote business-to-business cooperation, both countries will aim to strengthen their cooperation across information technology and related services. During his visit, President Kovind also addressed the India-Bolivia Business Forum. He laid emphasis upon the need to complement the economic strengths of both countries for mutual growth and prosperity.
Highlighting India’s focused approach towards business in the Latin American region, President Kovind touched upon how the India-Latin America and Caribbean Conclaves that are held annually, have helped deepen business collaborations. Several Indian businesses have successfully entered the Bolivian market to offer cutting-edge technologies, industrial products and services to the people there. He also underlined India’s attractiveness as a unique destination for international trade and business, given the vibrant ecosystem fostered by democratic structures, a middle-class market of over 400 million and the third largest scientific pool of human resources in the world.
India Outbound
April 2, 2019
source https://indiaoutbound.org/economic-relations-between-india-and-bolivia/
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