India-Argentina Relations

India-Argentina Relations

Why in News India-Argentina Relations? 

Recently, India deepened its ties with Argentina through a landmark two‑day visit in early July 2025. Both nations decided to boost trade ties and attract investment in defence and digital payment sectors.

Key Highlights of the July 2025 Visit to Argentina

• Recently PM of India made the first official bilateral visit to Argentina in 57 years. The two day visit marked 75 years of diplomatic ties since 1950. 
• Both nations agreed to elevate their relationship across multiple fields: critical minerals, oil & gas, defence, nuclear energy, agriculture, science & technology, ICT, space, railways, pharma, sports, energy and people‑to‑people links. 
• India recognised Argentina’s global position in the Lithium Triangle and interest in lithium, copper, shale oil and gas. 
• Concessions are held by Indian public entity KABIL and Coal India in Catamarca province. Private Indian firms have also secured lithium access. 
• Both the countries pushed to broaden the trade corridor to include pharma, machinery, maize, soymeal and more ingredients. 
• They supported broadening the scope of the India-Mercosur Trade Agreement to include more goods.
• India’s UPI system drew praise from Argentina. Both the countries discussed sharing digital payment infrastructure. 
• Both nations explored defence collaboration, including helicopter maintenance, technology transfer, drone deployment in fisheries and power-line monitoring, and expansion of joint manufacturing.
• India asked Argentina to upgrade its pharmaceutical import policy from Annex II to Annex I to allow easier entry for Indian meds.
• The Indian Prime Minister was awarded the “Key to the City” in Buenos Aires, reflecting strong bilateral goodwill.

Historical Foundations of India‑Argentina Ties

• Establishment: India and Argentina officially began their diplomatic journey in February 1949, shortly after India gained independence. Argentina was among the first Latin American nations to engage formally with India. India’s embassy in Buenos Aires opened in the 1950s, while Argentina’s diplomatic mission in New Delhi became fully functional soon after.

• Non-Alignment: India and Argentina both chose independent foreign policies during the Cold War. Though Argentina was not a member, it admired the principles behind it. Both countries believed in avoiding rigid alliances and instead encouraged dialogue among nations. It encouraged multilateral cooperation and South-South engagement.

• Cooperation: By the 1970s, both nations had exchanged scientific delegations focused on biotechnology, renewable energy, and meteorology. Indian philosophy, yoga, classical music, and films found interest among Argentinians. In the 1980s and 1990s, both nations advocated for a fairer international economic system. By the 2000s, both countries were actively exploring ways to transform their historic friendship into a modern partnership.

Political and Strategic Cooperation Between India and Argentina

• Diplomatic: India and Argentina advanced their diplomatic dialogue in February 2025 through the 7th Joint Commission meeting in New Delhi. Their Foreign Office Consultations followed in September 2024 in Buenos Aires.

• Defence: Both nations built upon their 2019 Defence Cooperation MOU. They forecast frequent armed forces exchanges. They also discussed joint training, co‑production of defence equipment, and interest in India’s Tejas fighter jets. 

• Nuclear and Space: India and Argentina have deepened their peaceful nuclear collaboration through agreements dating from 2010 and 2019 under the Global Centre for Nuclear Energy Partnership. The two parties aim to strengthen research and capacity building within their institutions.

• Terrorism: Both governments issued a strong joint declaration condemning terrorism, including cross‑border violence. They called for dismantling terror networks and denying support to extremist groups. They endorsed a UN convention on international terrorism.

• Global South: Both the countries stressed multi‑polar world order and Global South unity. They reaffirmed statements at G20 and BRICS summits, highlighting equitable financial structures, climate justice, and UNSC reform. They backed Argentina’s temporary UNHRC chairmanship and mutual participation in Group of 77 initiatives.

Economic and Trade Relations Between India and Argentina

• Bilateral Trade Growth: India and Argentina have seen a steady jump in trade. Trade value crossed US $6.4 billion in 2022, more than double the 2019 figure. Trade dipped to US $3.9 billion in 2023 due to droughts in Argentina. In 2024, it rebounded to US $5.2 billion after improved weather and economic stability. And in early 2025, trade surged 54% to US $2.06 billion in the first four months.

• Export and Import: Argentina mainly exports soybean and sunflower oils to India. Other imports include cereals, leather, pulses, and organic chemicals. India exports petroleum, textiles, agrochemicals, organic chemicals, medicines, and bikes to Argentina.

• Trade Diversification: They support expanding the India‑Mercosur Preferential Trade Agreement (PTA) to cover more commodities and manufactured goods. They also plan to negotiate the Double Taxation Avoidance Agreement (DTAA) and a Bilateral Investment Treaty (BIT) to secure investments.

• Investment Trends: Indian companies have invested over US $1.2 billion in Argentina. These include TCS, Infosys, Mphasis, UPL, Bajaj, TVS, Royal Enfield, Glenmark, Godrej, and others. 

• Argentina also invests in India through companies like Globant and OLX, totaling approximately US $120 million. 

• Argentina emerged as the South American leader in inbound FDI in 2023, with US $23.9 billion, mainly in services, manufacturing, and natural resources.

• • India’s FDI inflows reached US $71.28 billion in FY 2023–24 and rose to US $81 billion in FY 2024–25.

Energy and Mineral Collaboration Between India and Argentina

• KABIL’s Investment: In January 2024, Khanij Bidesh India Ltd (KABIL)—a joint venture of NALCO, Hindustan Copper and MECL—secured exclusive rights to five lithium brine blocks in Catamarca province. The deal includes over 15,700 hectares and carries a project budget of about ₹200 crore over five years.

• • • India imported lithium worth ₹24,000 crore in 2020‑21, mainly from China. This project aims to offer a reliable, diversified supply chain for India’s EV battery needs and clean‑energy goals.

• Minerals: Alongside lithium, Indian firms are exploring copper, gold, shale gas and oil in Argentina. The Ministry of Mines identified 30 critical minerals that align with India’s green push. Coal India has launched discussions around Argentina and Chile to explore critical minerals as part of India’s Mineral Security Mission.

• Shale Gas Deal: In January 2025, Argentina’s oil company YPF signed an MoU with ONGC Videsh, OIL and GAIL. The agreement targets exports of up to 10 million tons of LNG annually, sourced from Vaca Muerta shale. The initial LNG exports are expected by 2029, with an onshore terminal anticipated by 2031.

• Policy Alignment: India and Argentina signed a MoU in 2022 to enable mineral exploration and supply. Argentina’s Large Investment Incentive Regime (RIGI) offers tax benefits for investments over $200 million. The Argentina deal forms part of a broader Minerals Security Mission that includes Australia, Bolivia and Chile.

Technology and Cultural Exchanges between India and Argentina

• ISRO Satellite Cooperation: India’s space agency launched Argentina’s nano-satellite Pehuensat-1 aboard a PSLV rocket in January 2007. ISRO and Argentina’s space agency CONAE have since signed formal cooperation agreements. These agreements cover satellite payloads, Earth observation initiatives, and Antarctic research.

• Academic Collaboration: India provides five ITEC scholarships to Argentine students every year. Argentine diplomats attend training at India’s Foreign Service Institute. The University of Buenos Aires offers postgraduate Ayurveda programs in cooperation with Gujarat Ayurveda University.

• Wellness Promotion: Indian yoga groups like Art of Living, Brahma Kumaris, ISKCON, and Sivananda are active in Argentina. These groups organize regular International Day of Yoga events across major cities. Argentina’s National Medicines Agency (ANMAT) participated in Ayurvedic Day events in November 2024.

• Diaspora: Around 2,200 people of Indian origin live in Argentina. Most reside in Buenos Aires, Salta, Córdoba, Tucumán, and Jujuy. The community includes Hindus, Sikhs, and Sindhi traders. The Hindú Club in Don Torcuato traces roots to Bengali laborers who arrived in 1895.

• Cultural Icons: Statues of Mahatma Gandhi and Rabindranath Tagore stand in public parks in Buenos Aires. Argentina marked 160 years of Tagore’s birth in September 2021 with a tribute at Parque Rosedal.