Latin America has quietly become one of India’s most important and fast-growing export destinations. In 2025–26 Indian shipments to the region outpaced exports to several traditional partners and neighboring markets, highlighting a decade-long shift in trade patterns and significant untapped potential.
Key country comparisons and growth
India’s exports to Brazil reached $7.02 billion in 2025–26, a figure larger than India’s exports to Japan ($6.04 bn), Vietnam ($6.6 bn), Spain ($6.96 bn), South Korea ($6.01 bn), South Africa ($7.0 bn) and Malaysia ($6.82 bn). Exports to Mexico totaled $5.73 billion, exceeding shipments to Sri Lanka ($5.52 bn), Thailand ($5.06 bn), Indonesia ($4.49 bn), Russia ($4.49 bn), Canada ($4.67 bn), Egypt ($3.93 bn) and Turkey ($4.54 bn).
Smaller Latin American markets also outperformed several other partners: Chile saw $1.22 bn of Indian exports (versus $808 m to Myanmar), Guatemala $656 m (compared with $567 m to New Zealand), the Dominican Republic $411 m (versus $280 m to Cambodia), and Honduras $257 m (above $185 m to Kazakhstan), despite population differences.
This is not a one-year anomaly. Exports to the 19 Latin American countries rose from $10 billion in 2015–16 to $21.55 billion in 2025–26. With a targeted, long-term strategy by exporters and the Commerce Ministry, exports could scale toward $50 billion.
Why Latin America matters
The region comprises 19 countries with about 620 million people, roughly $8 trillion in combined GDP and per-capita income near $12,000. Total regional imports were about $1.75 trillion in 2025. Latin America offers diversified sourcing for energy, minerals and food, helping India’s strategic diversification away from concentrated suppliers.
Major export sectors from India (2025–26)
– Vehicles and automotive components: $5.5 billion
– Chemicals: $3.2 billion
– Machinery: $3.0 billion
– Pharmaceuticals: $2.0 billion
– Textiles (including apparel, fabrics, fibre): $1.3 billion
– Petroleum products: $1.07 billion
– Aluminum products: $560 million
– Rubber products: $469 million
– Plastics: $446 million
– Cotton: $451 million
– Ceramic products: $383 million
– Iron and steel: $352 million
Motorcycles and cars
Motorcycles have led the boom: India exported $1.64 billion worth of motorcycles to Latin America, accounting for 41% of India’s global motorcycle exports in 2025–26. Colombia was the top destination at $578 million, followed by Mexico ($320 m), Brazil ($174 m), Guatemala ($141 m), Argentina ($90 m), Peru ($85 m) and Honduras ($56 m). India is the region’s second-largest motorcycle supplier after China.
Car exports to Latin America totaled $2.25 billion, representing about 25% of India’s global car exports ($9 billion). Major destinations included Mexico ($1,125 m), Chile ($279 m), Peru ($251 m), Colombia ($150 m), Panama ($77 m), Costa Rica ($74 m), Guatemala ($58 m), Uruguay ($52 m) and Ecuador ($50 m).
Pharmaceuticals
Pharmaceutical exports to Latin America totaled around $1.6 billion in 2025–26. India ranked as the fifth-largest supplier to the region (after the US, Germany, Switzerland and Ireland); China ranked 11th. Key markets were Brazil ($530 m), Mexico ($219 m), Chile ($179 m), Colombia ($112 m), Guatemala ($95 m), Venezuela ($79 m), Peru ($72 m), the Dominican Republic ($72 m), Ecuador ($37 m) and Honduras ($33 m).
Indian companies succeeding in Latin America
– UPL, the agrochemical multinational, reported consolidated revenue of ₹51,839 crore in FY 2025–26, with ₹19,358 crore (37%) from Latin America versus ₹6,343 crore from India.
– Kalpataru secured roughly $1 billion in EPC contracts across the region, including a single $430 million contract in Chile.
– In January 2026 Welspun Corp won a $203 million contract from Argentina for steel pipes supporting shale gas and oil export infrastructure.
India’s imports from Latin America
Major imports in 2025–26 included:
– Gold: $14.7 billion (up from $6.8 billion the prior year), with Peru the top source at $7.99 bn, followed by Chile ($1.8 bn), Dominican Republic ($1.5 bn), Bolivia ($1.25 bn), Colombia ($808 m), Argentina ($902 m), Brazil ($232 m) and Mexico ($174 m).
– Crude oil: $5.7 billion, with Brazil ($2.3 bn), Colombia ($1.6 bn), Mexico ($333 m) and Venezuela ($255 m) among suppliers. US sanctions disruptions had reduced Venezuelan supplies earlier, but loosening sanctions in 2026 restored Venezuelan crude flows; in May 2026 Venezuela supplied about 417,000 barrels per day (bpd) to India, up from 283,000 bpd in April. Brazil’s exports to India also increased (about 290,000 b/d in April 2026).
– Vegetable oil (mostly soybean oil): $4.8 billion, with Argentina the leading global supplier to India ($3.7 bn) and Brazil supplying $1.1 bn.
– Raw sugar: $1.24 billion (Brazil a key source for refining and re-export)
– Copper concentrate and other minerals: $4.6 billion, with Chile supplying $2.4 bn, Brazil $935 m, Peru $730 m, Mexico $286 m and Colombia $148 m.
– Other imports: machinery and equipment ($1 bn), iron and steel ($514 m), wood ($487 m), chemicals ($485 m), fresh fruits and vegetables ($467 m), cotton ($405 m), wood pulp ($244 m), aluminum products ($212 m).
Energy and resource diversification
Latin America is an important and growing source of energy, edible oils and critical minerals for India. Argentina has emerged as a new LPG supplier in 2026 (50,000 tonnes shipped in the first three months of 2026, after 22,000 tonnes in 2025) and holds vast shale gas and oil reserves. The region’s mineral and rare-earth endowments are also strategically valuable.
Geopolitics and market positioning
Latin American governments and businesses are increasingly seeking to diversify trade away from an overreliance on China and to reduce exposure to protectionist markets. This openness, combined with India’s competitive manufacturing and pharmaceutical capabilities, creates a favorable window for deeper commercial engagement.
The opportunity ahead
Latin America’s rising role in India’s trade mix is the result of steady growth over a decade. With a combined population of 620 million, sizeable purchasing power and $1.75 trillion of regional imports in 2025, the market offers ample room for expansion. If Indian exporters and policymakers pursue a systematic, long-term strategy—covering market access, logistics, regulatory alignment and trade promotion—exports to the region could realistically approach $50 billion in the years ahead.
Ambassador (retired) R. Viswanathan is a Latin America expert.