Former diplomat Amarendra Khatua has called for India to transition from a passive trade partner to an active economic stakeholder in Latin America, emphasizing the need for processing hubs, localized supply chains, and permanent storage facilities in the region. Speaking to ANI, Khatua argued that India's current trade relationship remains "very limited," often stalling after initial procurement goals for edible oil, crude oil, or spices are met.
Strategic Shift Needed for Food and Energy Security
Khatua highlighted that Latin America is central to India's future stability in three vital areas: edible oil, petroleum, and critical minerals. He proposed that India move beyond mere extraction and establish local processing capabilities. "Why cannot we process oil seeds there and have our exports brought to India and third countries?" he asked, suggesting that India could process crude oil and edible oil locally and export to the Middle East and other markets.
Investing in Refining and Storage Infrastructure
Khatua advocated for building refining infrastructure in countries like Venezuela, Mexico, and Brazil, and establishing stock and sales facilities in the "lithium triangle" of Bolivia and Chile, as well as in Peru and Brazil for rare earths. He urged India to "intervene directly" to ensure a steady pipeline of essential resources. "We have to have alternate sourcing," he noted, adding that creating storage facilities in Latin America would allow India to bring oil home when needed, managing logistical challenges of distance and shipment costs.
Learning from China's Approach
The former diplomat drew a direct comparison to China's model, which emphasizes direct state intervention and long-term trade corridors. He criticized India's tendency to focus on bilateral trade monitoring only during "VVIP visits," calling instead for a permanent institutional presence. Khatua urged Indian export promotion councils and chambers of commerce to establish direct, sustainable contacts on the ground, rather than "talking too much that nothing is happening."
Digital Infrastructure as a High-Potential Export
Beyond physical commodities, Khatua identified India's Unified Payments Interface (UPI) as a high-potential export for the region. By pairing advanced IT and biotechnology exports with tangible infrastructure investments, he suggested India could create a comprehensive economic ecosystem in Latin America.
Khatua emphasized that India's economic diplomacy must become more proactive to insulate the nation from global supply shocks. "We have depended on Latin America for a long time, especially Argentina and Brazil," he said, referring to edible oil imports. For petroleum, he noted imports from Venezuela, Mexico, and Brazil. He proposed that India process crude and edible oil locally and export to both India and the Middle East, stating, "Crude oil as well as edible oil, for example, because we export to the Middle East. Therefore, we can process there, bring to India and export all over the world."
