 "New growth frontiers opening up in Latin America")
Indian MSMEs can look forward to gainful business partnerships with companies in the Latin American and Caribbean countries (LAC) region. Potential areas of cooperation are information technology, knowledge industries, capacity building, mining, hydrocarbons and infrastructure projects, according to an article in a recent issue of MSME Business, a CII publication.
The LAC region, with a combined GDP of $4.9 trillion, 600 million people and a landmass five times that of India, is rich in mineral resources, one of the biggest trade blocs and also one of the fastest growing economies in the world. While India's trade with LAC has now touched $25 billion, cumulative investments have grown to the tune of $15 billion.
Exports form an important part of the Indian MSME sector, with over 65 per cent of production catering to export markets. But Indian MSMEs need to look beyond the US, UK, and the European markets and LAC could be a key market to strengthen their position, the article says, quoting says a report by consulting firm Deloitte.
Mexico is looking to partner with Indian companies in the fields of science and innovation, bio-technology, water management and new and renewable energy. This spells great opportunities for MSMEs in these sectors, says the article. In Mexico, foreign investment has been simplified by amending the relevant regulations, reducing legal and administrative bureaucracy, reducing local content requirements, modifying ceilings on foreign equity, eliminating most import licence requirements and overhauling intellectual property legislation.
Foreign investment in Mexico is permitted in all areas except those explicitly limited to the government. Foreign investors may hold up to 100 per cent of the capital stock of any Mexican corporation or partnership, except in areas limited under law. Where an investment is in a classified or regulated sector such as banking, railways or telecommunications, approval is required from the Foreign Investment Commission.
Chile has emerged as one of the world's most open economies, with a growth rate of five per cent. Two-way trade between India and Chile currently stands at $2.6 billion, but there is scope for greater cooperation. Indian commercial vehicles, cars, two-wheelers and pharmaceuticals are in demand in the Chilean market.
The Argentinean government has decided to issue five-year, multiple-entry visas to any Indian businessmen free of cost. This is expected to attract more small business enterprises from India to Argentina.
According to one study, LAC could make use of India's experience in the cluster development approach to develop its local MSME sector and attain competitive advantage by collaborating in business development, cost reduction, capacity building, technology upgradation, and common facility creation.
The global economic crisis has also provided an opportunity to the LAC region to focus on making the MSME sector more competitive. For example, Brazil has started MP 464, a $2 billion lending guarantee programme for MSMEs, which could generate $24 billion in new working capital, investment, and export financing.
The LAC region, with a combined GDP of $4.9 trillion, 600 million people and a landmass five times that of India, is rich in mineral resources, one of the biggest trade blocs and also one of the fastest growing economies in the world. While India's trade with LAC has now touched $25 billion, cumulative investments have grown to the tune of $15 billion.
Exports form an important part of the Indian MSME sector, with over 65 per cent of production catering to export markets. But Indian MSMEs need to look beyond the US, UK, and the European markets and LAC could be a key market to strengthen their position, the article says, quoting says a report by consulting firm Deloitte.
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Bilateral trade between LAC and India, hitherto dominated by oil, hydrocarbons, minerals and agricultural commodities, is now moving into niche areas like pharma and IT services. Some countries in the region offer good scope. Brazil and India have witnessed a 10-fold increase in trade over the past decade, with the figure reaching $10 billion in 2012 and set to touch the $15 billion mark by 2015.
Mexico is looking to partner with Indian companies in the fields of science and innovation, bio-technology, water management and new and renewable energy. This spells great opportunities for MSMEs in these sectors, says the article. In Mexico, foreign investment has been simplified by amending the relevant regulations, reducing legal and administrative bureaucracy, reducing local content requirements, modifying ceilings on foreign equity, eliminating most import licence requirements and overhauling intellectual property legislation.
Foreign investment in Mexico is permitted in all areas except those explicitly limited to the government. Foreign investors may hold up to 100 per cent of the capital stock of any Mexican corporation or partnership, except in areas limited under law. Where an investment is in a classified or regulated sector such as banking, railways or telecommunications, approval is required from the Foreign Investment Commission.
Chile has emerged as one of the world's most open economies, with a growth rate of five per cent. Two-way trade between India and Chile currently stands at $2.6 billion, but there is scope for greater cooperation. Indian commercial vehicles, cars, two-wheelers and pharmaceuticals are in demand in the Chilean market.
The Argentinean government has decided to issue five-year, multiple-entry visas to any Indian businessmen free of cost. This is expected to attract more small business enterprises from India to Argentina.
According to one study, LAC could make use of India's experience in the cluster development approach to develop its local MSME sector and attain competitive advantage by collaborating in business development, cost reduction, capacity building, technology upgradation, and common facility creation.
The global economic crisis has also provided an opportunity to the LAC region to focus on making the MSME sector more competitive. For example, Brazil has started MP 464, a $2 billion lending guarantee programme for MSMEs, which could generate $24 billion in new working capital, investment, and export financing.