|
Naomi Miriam Mathew
20 July 2025 |
The following note was earlier published in The World This Week #319 & 320 Vol 7, No 28 & 29, 20 July 2025
Indian PM Modi’s Visit to Argentina:
Minerals, Markets, and Military
Naomi Miriam Mathew
What happened?
On 4 July, PM Modi arrived in Buenos Aires, Argentina, for a two-day visit marking the third stop of the Five-Nation tour. It is the first bilateral visit to Argentina in 57 years, where the Prime Minister addressed Argentina as a key economic partner in Latin America and a close collaborator in the G20. Both countries signed a series of MOUs in different sectors, including defence cooperation, where India offered Maintenance, Repair, and Overhaul services for Argentine helicopters through HAL and Bharath Dynamics Ltd, which would help Argentina to reduce dependence on Western defence logistics and also discussed joint production of certain defence mechanisms. In the agricultural sector, they signed an agreement to form a joint working group for easing regulatory barriers and exploring new trade routes. India opened its vast agro-markets to exporters of Argentina while aiming to get greater access to the dairy and meat products of Argentina. In the critical minerals and energy sector, India reiterated its partnership with Argentina for sourcing lithium, copper and rare earths.
Furthermore, Argentina opened investment opportunities for Indian companies in shale oil and gas in Vaca Muerta basin. In trade and investment, India proposed the expansion of India-MERCOSUR Preferential Trade Agreement to include pharmaceuticals, IT, and green technology, and further simplifying customs and reducing tariffs. For public health outreach and pandemic preparedness, Argentina expressed its interest in adopting India’s digital health infrastructure, like Cowin, e-Sanjeevani, and Ayushman Bharat Digital Mission.
What is the background?
First, a brief history of India-Argentina bilateral relations. India and Argentina established the foundation of bilateral relations in 1949. Argentina was among the few countries to recognise India’s sovereign status; since then, the relationship has grown steadily. Initially, the relationship was based on shared values in the Non-Aligned Movement and cooperation in culture, science and education. With the liberalisation of both economies, economic relations strengthened after the 1990s. The India-MERCOSUR preferential trade agreement was signed in 2004 to further strengthen the economic ties. The relationship was further strengthened through 2010 collaborations in space and Argentina’s entry to International Solar Alliance in 2018.
Second, trade and investment between India and Argentina. In 2022-23, bilateral trade between India and Argentina reached around USD 6.4 billion, where India exported pharmaceuticals, automobiles, and chemicals and imported soybeans, oil, minerals and leather. Indian companies like TCS, Tech Mahindra, and Sun Pharma have had a presence in Argentina since the mid-2000s. Trade relations are further strengthened by 2004 India-MERCOSUR Preferential Trade Agreement, which provides easy market access in Latin America and trade concessions in the region.
Third, India and Argentina’s trade in the agricultural sector. Argentina is India’s top supplier of Soybean oil and the third-largest supplier of sunflower oil. India imports about 542,000 tonnes of sunflower oil from Argentina. Other than oil, India also imports pulses, cereals, and finished leather from Argentina. Due to India’s limited production of sunflower oil, Argentina’s edible oil plays an important role in ensuring India’s food security.
Fourth, critical minerals and energy cooperation between India and Argentina. Argentina holds world’s second-largest lithium reserves and is part of the lithium triangle along with Bolivia and Chile, and serves as an important partner for India’s ambitious electric vehicle and battery storage goals. These long-term energy transition goals have increased India’s interest in sourcing lithium, copper, and rare earth elements from Argentina. In Catamarca province of Argentina, Mineral Exploration and Consultancy Limited, in collaboration with Khanij Bidesh India Ltd and Hindustan Computers Limited, is conducting a brine-based lithium exploration of over 15,000 hectares. To get LNG from Argentina’s Vaca Muerta reserves, India has signed a parallel MOU. Though Argentina is home to vast energy reserves, it does not have the fiscal or infrastructure prowess for energy production and is heavily dependent on global actors like India for energy collaborations.
Fifth, India and Argentina’s defence cooperation. India’s emergence as a defence exporter has led to stronger military dialogues, such as training and naval cooperation. In the murky water of geopolitics, Argentina is considering India as an alternative to traditional arms suppliers like Russia and the West.
What does it mean?
First, Argentina’s importance to India. Argentina, as the regional entry point to Latin America and as part of lithium triangle, plays an important role in India’s energy transition goals. Argentina is a key partner in India’s mineral diplomacy to reduce dependence on China.
Second, Latin America as a strategic frontier for India’s global outreach. In resource resource-rich Latin American region, India’s partnership would be a strategic alternative to traditional partners. For India, a Latin American partnership would help to diversify its economic ties and open South-South cooperation.
About the Author
Naomi Miriam Mathew is a postgraduate student of International Studies at the Symbiosis School of International Studies, Pune.
