E-Paper
India, Brazil, Argentina chart new economic vision for South-South collaboration
These ties reflect a shared vision for sustainable growth and equity. At Mahindra, it is viewed as a chance to drive innovation, business, purposeful change
As the global order transitions into a multipolar framework, India’s economic engagement with Latin America, particularly Brazil and Argentina, is emerging as a cornerstone for advancing South-South cooperation. These relationships go beyond trade statistics and diplomatic overtures; they symbolise a shared commitment to sustainable growth, technological progress, and equitable development. At Mahindra, we view this as a transformative opportunity where innovation, business, and purpose come together to create meaningful change.
The Commercial Landscape:
India-Argentina bilateral cooperation has seen remarkable growth in recent years. Trade between the two nations peaked at USD 6.4 billion in 2022, with India emerging as Argentina’s fourth-largest trading partner. In 2024, annual bilateral trade rose by 33% to USD 5.23 billion, further solidifying India’s position as a key export destination for Argentina.
Argentina is a major supplier of edible oils to India, with vegetable oils constituting over 80% of its exports. However, the relationship extends far beyond agricultural commodities, encompassing sectors like pharmaceuticals, chemicals, and textiles. With cumulative Indian investment in Argentina nearing USD 1.2 billion, and Argentine investments in India totaling USD 120 million, the economic ties between the two countries are poised to deepen further.
Brazil remains India’s largest trading partner in South America, with bilateral trade reaching USD 12.2 billion in 2024–25. Indian investments in Brazil exceed USD 6 billion, spanning sectors like pharma, automobiles, and energy. Brazilian investments in India, meanwhile, focus on mining, steel, and bio-energy.
Defence cooperation is a standout aspect of this relationship, underscored by joint development initiatives like Airborne Warning and Control System (AWACS) aircraft and the C-390 Millennium transport aircraft. Brazil’s leadership in biofuels, coupled with India’s engineering prowess, sets the stage for transformative partnerships in renewable energy.
Opportunities in Pharma, IT, Health, Auto, and Manufacturing
The synergies between India and Latin America are especially pronounced in sectors such as pharmaceuticals, information technology, healthcare, automotive, and manufacturing.
Pharma and Healthcare
India’s pharmaceutical industry, renowned for its expertise in producing affordable generics, is uniquely positioned to contribute to Latin America’s healthcare landscape. Regulatory alignment and increasing demand for cost-effective medicines offer Indian companies a chance to enhance public health access in Brazil and Argentina. By leveraging India’s strengths in pharmaceutical research and development (R&D) and manufacturing, these countries can scale their healthcare systems to deliver better outcomes for their populations.
IT and Digital Governance
India’s digital transformation journey, epitomised by the India Stack - a suite of open-source digital public goods like Aadhaar, UPI, and DigiLocker, provides valuable lessons for Latin America. These platforms have revolutionised service delivery for millions in India, offering scalable templates for financial inclusion, e-governance, and digital identity. Collaborations with Brazilian and Argentine institutions could co-develop frameworks tailored to local needs, enabling governments to empower citizens at unprecedented levels.
Automotive and Manufacturing
The automotive and manufacturing sectors present fertile ground for joint ventures and co-investment. Brazil’s mature automotive ecosystem and Argentina’s openness to industrial collaboration create ideal conditions for Indian automakers to set up local assembly units and deepen industrial partnerships. Mahindra’s memorandum of understanding (MoU) with Brazil’s Embraer on the C-390 Millennium transport aircraft exemplifies the potential for defence-industrial cooperation that extends to civilian manufacturing as well.
Defence Exports and Strategic Collaborations
Defence cooperation between India and Latin America is gaining momentum, driven by mutual trust and alignment in capabilities.
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Brazil’s Embraer has established a subsidiary in New Delhi, signalling the seriousness of bilateral partnerships in aerospace and defence. Indian defence exports, such as indigenous solutions for AWACS systems and transport aircraft, offer both strategic autonomy and opportunities to foster innovation ecosystems in both regions. Argentina, too, presents avenues for defence technology partnerships in areas like surveillance, maritime logistics, and shared security. These collaborations not only strengthen bilateral ties but also enhance regional stability in the Southern Hemisphere.
Minerals, Energy, and the Green Transition
India’s engagement with Brazil and Argentina is underpinned by a shared commitment to a greener, more resilient future.
Critical Minerals and Rare Earths
Argentina has emerged as a key partner in India’s quest for critical minerals, particularly lithium, which is vital for electric vehicles and energy storage systems. The MoU on mineral cooperation signed in August 2022 laid the foundation for strategic collaboration in this sector. The Joint Working Group meeting in January 2025 further solidified this alliance, paving the way for equitable partnerships across the extraction, processing, and battery value chains.
India must approach Argentina not merely as a buyer but as a co-investor and technology partner, sharing expertise in sustainable mining and refining practices. These minerals are essential for India’s green energy transition and its broader ambitions to achieve net-zero emissions.
Energy Security
India’s growing energy appetite necessitates diversification of supply sources, making Argentina and emerging producers like Guyana critical allies. Indian public sector undertakings have already invested over USD 3 billion in Brazil’s oil and gas assets. The next step involves deepening these partnerships through joint R&D, long-term contracts, and integrated value chains that ensure predictability and resilience.
Renewable Energy and Biofuels
Brazil is a global leader in biofuels, making it an invaluable partner for India’s renewable energy ambitions. As a co-founder of the Global Biofuels Alliance, Brazil offers expertise in scaling green fuel solutions, particularly sustainable ethanol production for aviation and transport. Collaborative initiatives that combine Indian engineering with Brazilian bio-innovation could redefine global standards for clean energy and sustainable mobility.
The Way Forward: Building South-South 2.0
The time is ripe for a re-imagined model of South-South cooperation --- one that is innovative, equitable, and values-driven. India, Brazil, and Argentina are natural collaborators in realizing this vision.
To achieve this, we need bilateral innovation funds to support startups and R&D partnerships; ease of investment frameworks that fast-track approvals and protect investor confidence; and people-to-people bridges such as youth and academic exchange programs to build trust beyond boardrooms.
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At Mahindra, we are committed to leading this charge. Whether it’s sustainable agriculture, platforms for digital governance, or next-generation transport solutions, we view Latin America not merely as a market but as a partner in progress.
As India journeys toward Amrit Kaal --- the vision of becoming a developed nation by 2047 --- its external partnerships will play a defining role in shaping internal success. In Brazil and Argentina, we find kindred nations ready to co-write the next chapter of prosperity, progress, and planet-positive growth.
Anish Shah is the managing director and chief executive officer (CEO) of Mahindra Group. The views expressed are personal.
