India and Argentina, two nations bound by democratic values and a shared respect for the rule of law, have witnessed a strengthening of their bilateral relations in recent years. This partnership, elevated to a Strategic Partnership in February 2019, encompasses a wide spectrum of sectors, including political, economic, defense, mining, cultural, scientific, and technological cooperation. As both countries commemorate 75 years of diplomatic ties in 2024, there's a growing impetus to deepen collaboration and explore new avenues for mutual growth.

Economic Ties and Trade Dynamics

The economic relationship between India and Argentina has seen remarkable growth. Bilateral trade more than doubled between 2019 and 2022, reaching a peak of $6.4 billion. India emerged as Argentina's fourth-largest trading partner during this period, with Argentina being a key supplier of edible oils, particularly soybean oil, to India. However, challenges such as severe drought in Argentina and subsequent economic slowdown impacted bilateral trade, which settled at $3.9 billion in 2023. In 2024, trade regained momentum, rising by 33% to USD 5.2 billion, with India ranking as Argentina's fifth largest trading partner and export destination.

India's exports to Argentina include petroleum oils, agrochemicals, yarn fabrics, organic chemicals, bulk drugs, and two-wheelers. Conversely, India's imports from Argentina primarily consist of vegetable oils (soybean and sunflower), finished leather, cereals, residual chemicals, allied products, and pulses. Both nations recognize the potential for further diversification of their trade portfolio, particularly in sectors like pharmaceuticals, information technology, and high-tech engineering products.

Strategic Cooperation and Defense Collaboration

Beyond economic ties, India and Argentina have been actively strengthening their strategic cooperation, particularly in the defense sector. The first-ever bilateral visit by an Argentine Defense Minister to India in July 2023 underscored the commitment to enhancing defense cooperation and defense industrial partnerships. This includes the first-ever commercial agreement in the defense sector between Hindustan Aeronautics Limited (HAL) and the Argentine Air Force for the supply of helicopter spares and engine maintenance.

Both countries also have regularly posted defense attaches in each other's embassies, and India has seen a slew of high-level visits from Argentina, including the Argentine Air Force chief and the Joint Chief of Staff of the Argentine Armed Forces in 2022.

Expanding Horizons: Mining, Energy, and Space

India and Argentina are also exploring collaboration in new and emerging sectors. Indian companies have made significant investments in Argentina's mining sector, particularly in lithium exploration, which is crucial for India's push towards clean energy and electric mobility. In January 2024, Khanij Bidesh India Ltd (KABIL) signed a US$24 million agreement with the Argentine government to explore and develop five lithium brine blocks in Argentina's Catamarca province.

In the energy sector, agreements have been signed to promote cooperation in oil and gas between Indian and Argentine companies. Both countries are also exploring joint ventures in wind and solar power to support sustainable energy objectives. Furthermore, the space agencies of both countries, ISRO and CONAE, have signed framework agreements for outer space cooperation, including the possibility of collaborating on the calibration and validation of a future L-band satellite that India is developing together with NASA.

Multilateral Cooperation and Shared Values

India and Argentina share a global south identity, which enhances their ability to advocate for the interests of developing nations within multilateral frameworks. Both countries actively participate in forums such as the G20, the Group of 24, and the Group of 77, where they coordinate their efforts to address pressing global challenges and promote the interests of the global south. Both countries also condemn and fight against terrorism and extremism.

Looking Ahead

As India and Argentina look to the future, there is a clear commitment to deepen their strategic partnership and explore new avenues for cooperation. The recent high-level visits and agreements signed between the two countries demonstrate the growing importance of this relationship. By leveraging their shared values, economic complementarities, and strategic interests, India and Argentina are poised to strengthen their bilateral ties and contribute to a more prosperous and secure world.