When one reads about India’s trade partners, the first few names which come up are the United States, the United Kingdom, Germany, China and the EU amongst others. What would happen if one would add names such as Brazil, Venezuela and Bolivia to this list? It would normally be seen as a surprise given that historically none of these countries have actually figured as prominent trading partners. All this has undergone a severe change and India is off building stronger relations with countries which are touted to be part of the ‘NEW LATIN LEFT’.

The reasoning given behind the coinage of the word ‘NEW LEFT’ is that a majority of the present regimes in the continent are either leftist or left leaning. But going one step further, the real reason is that while they aggressively propound socialism in their political rhetoric, they follow certain capitalist policies in their economics. Hence they are not ‘left’ in the old sense of the term. Though they are leftist in nature, their drive for development and expansion has a very capitalist look to it. These countries are moving rapidly to exploit, develop and export their natural resources, agricultural products and energy infrastructure to various partners. The very character of a South American country which has a leftist regime and yet capitalist viewpoints makes it an immediate candidate for a long term trade partner. Gone are the days when the countries from this region had a neo-liberal, puppet or pro-American Government which would only act in the interest of the United States. Here stands a new region with an improved identity and totally different foreign policies, policies which are more open than conservative.

The ‘New Left’ has hence emerged as a very potent partner for the aspirations of a developing country that is India. Over the last few years, India has been working hard to forge strong ties with various countries from South America and this partnership will go a long way and yield fruitful result for both the parties involved, especially India.

Before describing the ties between the continent and the country, let’s look at some of the immediate needs of India which have pushed the country to search for new partners. One of India’s primary concerns right now is energy. Its energy consumption has been increasing by leaps and bounds. India does not produce much of its needed energy domestically and is importing 75 percent of its oil and 50 percent of its natural gas consumption. That itself speaks about the immediate need of partners who can provide a steady solution and satisfy the same. The South American countries offer exactly that solution, with Venezuela leading the way.

When Hugo Chavez declared that he wanted to build a long term relationship with India, he added that it is very important for Venezuela to forge this tie and enforce the South-South bonding. Under Chavez, Venezuela has identified the energy needs of India and sees it as a very lucrative market. In 2006 itself the Venezuelan state-owned petroleum company PdVSA had shipped 2 million barrels of oil to India. With India being one of the few countries which can process Venezuelan crude oil, it becomes a win-win situation for both. The strategic advantage offered by this is great as this gives India an exclusive access to the Venezuelan Oil reserves. These reserves are eyed by most of the countries across the globe, but are not easily accessible to them thanks to their inability to process the same. ONGC Videsh Ltd is helping Venezuela certify heavy oil reserves in the Orinoco river belt, which is expected to contain 235 billion barrels of heavy crude. The oil connection with Venezuela itself speaks volumes about the efforts put in by the government to secure a solid partner in the southern continent of the Americas.

Apart from Venezuela, other South American countries have started strengthening their ties with India as well. In 2007-08, there were several high level visits to India, including the visits of the presidents of Brazil and Mexico. This, coupled with the visits of foreign ministers of Cuba, El-Salvador and Guatemala, reflects the surge in relations. Other examples of the rapid strides taken by India in South America is the USD 2.1 billion iron ore contract by Jindal Steel and Power Ltd. in Bolivia in 2007 by Jindal Steel and Power Ltd, a bilateral trade agreement target of US$ 10 billion set for 2010 between India and Brazil, preferential duties to 178 items from Chile and setting up of an IT training centre in Havana, Cuba known as India-Cuba Knowledge Centre

South America is being viewed as a crucial exporter of goods, oil and commodities in the near future, especially under the current regimes. This is one reason that China too has aggressively maneuvered its relations and forged important and strategic alliances with these countries. India, on the other hand, cannot be as aggressive, given the structure of the current geo-political situation in the world. While keeping its needs as it top priority, it cannot afford to rub the USA or China in the wrong way.

In the coming few decades, the relations between India and South America will increase multifold. India’s own energy and mineral needs will lead it to sign longer and comprehensive deals with these countries. With the base which has been created over the past few years, India can actually afford to jump and press for more effective ties. Greater exploration deals by the ONGC in Venezuela will be the start of a new era of India-Latino relations. Countries like Bolivia and Chile offer huge opportunities in the shape of Iron Ore and nickel, and the country will pull all strings to tie up deals regarding the same. With CIPLA already making a base for itself in Venezuela as a cheaper medication option, other Indian medical brands will also push for an entry into a market where the need for cheap and effective medicines is huge. The opportunity at hand, thanks to the ‘New Left’, is one which should not be missed by a country, which is in desperate need for resources and business partners. The ‘New Left’, knowingly or unknowingly has opened a door of great opportunities for countries across. The rat race has already begun and it’s up to India to sprint across the finish line with maximum of the spoils.