Latin America: India's most undervalued export market
The Latin Americans have started placing greater emphasis on trade with India
Latin America has emerged as a strategically vital trade partner for India, with exports to the region now surpassing those to several traditional markets and neighboring countries, as evidenced by 2025-26 figures where exports to Brazil exceeded $7 billion, surpassing Japan and South Korea, and Mexico's $5.73 billion exceeded that to Thailand and Russia. This growth, a continuation of a decade-long trend, has seen India's total exports to 19 Latin American nations reach $21.55 billion in 2025-26, doubling from 2015-16, with significant contributions from vehicles, pharmaceuticals, and particularly motorcycles where Latin America accounts for 41% of India's global exports, and cars making up 25%. Indian companies like UPL and Kalpataru Power Transmission are also experiencing substantial growth in the region, while India's imports from Latin America are dominated by gold, crude oil, and vegetable oils, with recent developments including increased crude oil imports from Brazil and Venezuela due to geopolitical shifts and the emergence of Argentina as an LPG supplier, all contributing to India's diversification of import sources for energy, minerals, and edible oils while Latin American nations increasingly seek to reduce their reliance on China and more protectionist Western markets.
Latin America has emerged as a strategically vital trade partner for India, with exports to the region now surpassing those to several traditional markets and neighboring countries, as evidenced by 2025-26 figures where exports to Brazil exceeded $7 billion, surpassing Japan and South Korea, and Mexico's $5.73 billion exceeded that to Thailand and Russia. This growth, a continuation of a decade-long trend, has seen India's total exports to 19 Latin American nations reach $21.55 billion in 2025-26, doubling from 2015-16, with significant contributions from vehicles, pharmaceuticals, and particularly motorcycles where Latin America accounts for 41% of India's global exports, and cars making up 25%. Indian companies like UPL and Kalpataru Power Transmission are also experiencing substantial growth in the region, while India's imports from Latin America are dominated by gold, crude oil, and vegetable oils, with recent developments including increased crude oil imports from Brazil and Venezuela due to geopolitical shifts and the emergence of Argentina as an LPG supplier, all contributing to India's diversification of import sources for energy, minerals, and edible oils while Latin American nations increasingly seek to reduce their reliance on China and more protectionist Western markets.
Latin America has emerged as a strategically vital trade partner for India, with exports to the region now surpassing those to several traditional markets and neighboring countries, as evidenced by 2025-26 figures where exports to Brazil exceeded $7 billion, surpassing Japan and South Korea, and Mexico's $5.73 billion exceeded that to Thailand and Russia. This growth, a continuation of a decade-long trend, has seen India's total exports to 19 Latin American nations reach $21.55 billion in 2025-26, doubling from 2015-16, with significant contributions from vehicles, pharmaceuticals, and particularly motorcycles where Latin America accounts for 41% of India's global exports, and cars making up 25%. Indian companies like UPL and Kalpataru Power Transmission are also experiencing substantial growth in the region, while India's imports from Latin America are dominated by gold, crude oil, and vegetable oils, with recent developments including increased crude oil imports from Brazil and Venezuela due to geopolitical shifts and the emergence of Argentina as an LPG supplier, all contributing to India's diversification of import sources for energy, minerals, and edible oils while Latin American nations increasingly seek to reduce their reliance on China and more protectionist Western markets.
India’s exports to Latin American countries now exceed exports to several neighboring markets and traditional trade partners, underscoring the region’s emergence as a strategically important destination for Indian goods.
In 2025–26, India’s exports to Brazil reached 7.02 billion dollars—higher than exports to Japan (6.04 bn), Vietnam (6.6 bn), Spain (6.96 bn), South Korea (6.01 bn), South Africa (7 bn), and Malaysia (6.82 bn).
Exports to Mexico totaled 5.73 billion dollars, exceeding exports to Sri Lanka (5.52 bn), Thailand (5.06 bn), Indonesia (4.49 bn), Russia (4.49 bn), Canada (4.67 bn), Egypt (3.93 bn), and Turkey (4.54 bn).
Exports to Chile reached 1.22 bn, exceeding exports to neighboring Myanmar at 808 m.
Exports to Guatemala at 656 m were more than the exports of 567 m to New Zealand.
Exports to the Dominican Republic totaled 411 m, which were higher than the exports to Cambodia at 280 m. Dom Republic has a population of about 11.5 million, compared with Cambodia’s 18 million.
Exports to Honduras totaled 257 m, exceeding exports to Kazakhstan at 185 m, despite Honduras having roughly half Kazakhstan’s population.
This is not a one-year wonder; it is the continuation of a decade-long trend. Latin America has clearly emerged as an important destination for India’s exports, with significant room for further growth in the coming years.
India’s exports to the 19 Latin American countries were 21.55 billion dollars in 2025-26, doubling from 10 bn in 2015-16.
Exports could scale to 50 billion dollars if Indian exporters and the Commerce Ministry pursue this underexplored market through a systematic, long-term strategy.
Latin America is a large market of 19 countries, 620 million people, 8 trillion dollars of GDP with per capita income of around 12,000 dollars. The region’s total imports in 2025 were 1.75 trillion dollars.
Motorcycles ride the wave of export boom to Latin America
India’s motorcycle exports to Latin America totaled 1.64 billion dollars, accounting for 41% of India’s global motorcycle exports.
Colombia ranked as the top global destination for India’s motorcycle exports in 2025–26, at 578 million dollars.
Mexico ranked second at 320 million dollars.
Other major markets included Brazil (174 m), Guatemala (141 m), Argentina (90 m), Peru (85 m), and Honduras (56 m).
India is the second-largest supplier of motorcycles to Latin America, after China.
Car exports
Car exports to Latin America totaled 2.25 billion dollars, representing 25% of India’s global car exports of 9 billion dollars.
Major destinations were Mexico (1,125 m), Chile (279 m), Peru (251 m), Colombia (150 m), Panama (77 m), Costa Rica (74 m), Guatemala (58 m), Uruguay (52 m), and Ecuador (50 m).
Pharmaceuticals
Pharmaceutical exports totaled 1.6 billion dollars. India was the 5th largest supplier of pharmaceuticals to the region after US, Germany, Switzerland and Ireland. China ranked 11th.
Major destinations for India’s pharmaceutical exports were Brazil (530 million dollars), Mexico (219 m), Chile (179 m), Colombia (112 m), Guatemala (95 m), Venezuela (79 m), Peru (72 m), the Dominican Republic (72 m), Ecuador (37 m), and Honduras (33 m).
Major items of exports of India to Latin America in 2025-26
- Vehicles: 5.5 bn
- Chemicals: 3.2 bn
- Machinery: 3 bn
- Pharmaceuticals: 2 bn
- Textiles, including apparel, fabrics, and fibre: 1.3 bn
- Petroleum products: 1.07 bn
- Aluminum products: 560 m
- Plastics: 446 m
- Rubber products: 469 m
- Cotton: 451 m
- Ceramic products: 383 m
- Iron and steel: 352 m
Indian companies are also doing well in Latin America
Here are two inspiring examples:
UPL, the largest Indian multinational agrochemicals company got 37% of its revenue from Latin America as against 12% from India.
For Financial Year 2025-2626, UPL Limited reported total consolidated revenue of ₹51,839 crore.
Revenue from Latin America was ₹19,358 crore which is three times more than their turnover of ₹6,343 crore in India.
Kalpataru power transmission company of Mumbai has secured around a billion dollars of EPC contracts in Latin America. This includes the single largest contract of 430 million dollars in Chile
In January 2026, Welspun Corp, an Indian steel pipe manufacturer, has won a 203 million dollar contract from Argentina, which is building the infrastructure for exports of shale gas and oil.
India's imports from Latin America:
- Gold - 14.7 billion dollars
- Crude oil 5.7 billion dollars
- Vegetable oil (mostly soya oil) 4.8 bn
- Raw sugar 1.24 bn
- Copper concentrate 4.6 bn
- Machinery and equipment 1 bn
- Iron and steel 514 m
- Wood 487 m
- Chemicals 485 m
- Fresh Fruits and vegetables 467 m
- Cotton 405 m
- Wood pulp 244 m
- Aluminium products 212 m
Raw gold import has doubled to 14.7 bn from 6.8 bn last year. Peru was the top source of gold imports with 7.99 bn (up from 4.6 bn last year) followed by Chile 1.8 bn, Dominican Republic 1.5 bn, Bolivia 1.25 bn,Colombia 808 m, Argentina 902 m, Brazil 232 m and Mexico 174 m.
Crude oil imports which reached a peak of around 15 billion dollars in 2013-14 has come down drastically due to US sanctions on Venezuela which had supplied 10 bn dollars of crude in 2013-14.
Crude oil import sources in 2025-26: Brazil 2.3 bn, Colombia 1.6 bn, Mexico 333 dollars and Venezuela 255 m.
The loosening of US sanctions have reopened India's crude imports from Venezuela in 2026. In May 2026, Venezuela became India's third-largest crude supplier in May, overtaking Saudi Arabia and the United States. Venezuela supplied around 417,000 barrels per day (bpd) of crude oil to India in May, higher than 283,000 bpd in April.
India has ramped up crude imports from Brazil after the disruption of supplies from the gulf due to the Iran war. Brazil became India’s fourth-largest crude supplier, sending around 290,000 b/d in April. India became the #2 destination for Brazilian oil exports in 2006.
Argentina has emerged as a new source of LPG (Liquefied Petroleum Gas) for India in 2026. Argentina shipped 50,000 tonne of LPG to India in the first three months of 2026 after starting with 22,000 tons in 2025. The country has potential to increase the supplies in the coming years. Argentina has the world's second largest shale gas and the 4th largest shale oil reserves. These are being being extracted and exported starting in the last few years.
Latin America is the main source of soy oil imports of India. Argentina is the #1 global supplier with 3.7 billion dollars, followed by Brazil 1.1 bn.
Brazil is the source of imports of raw sugar which India refines and reexports to other countries.
Chile, the main supplier of copper and other mineral concentrates from the region, supplied 2.4 bn (up from 1.6 bn last year), followed by Brazil- 935 m, Peru 730 m, Mexico- 286 m and Colombia 148 m
Main suppliers of wood from the region: Brazil 133 m, Uruguay 120 m, Ecuador 90 m and Panama 33 m.
The region has become a regular and reliable supplier of energy, minerals and edible oil helping India’s policy of strategic diversification of sources of imports, besides contributing to India's energy and food security. The region is endowed with abundance of critical minerals and rare earths.
The Latin Americans have started placing greater emphasis on trade with India as they seek to reduce overdependence on China and diversify beyond the more protectionist markets of Europe and the United States.
Ambassador (retired) R. Viswanathan is a Latin America expert.