Peruvian exports to India likely grew 90% in 2016, driven by expectations of a bilateral trade agreement in the short term, Indian Chamber of Commerce in Peru (InCham) Director Rohit Rao estimated.
Remarks came after the Indian Ministerial Cabinet this morning approved starting negotiations towards an FTA with Peru to foster two-way trade.
"This [the approval] is one of the best news we've had in recent months, since we are aware that such commercial alliance will boost bilateral trade and draw investments to Peru," Rao told Andina news agency.
Peruvian exporters already recognize opportunities to widen trade ties with a market as large as India.
Similarly, Indian entrepreneurs acknowledge the Inca nation's attractiveness for investments given its open trade policy.
Investment conditions
In the eyes of the Asian country, Peru is a hub —or operation center— to expand its commercial presence in Latin America, the InCham official explained.
In this respect, he underlined the Andean nation is "in condition to receive India's investments in various sectors, such as the automotive, footwear, and textile, among other industries."
The goal is to develop several industries in Peru, before re-exporting to those countries holding trade agreements with the South American nation.
"That will also speed up technological transfer processes, thus upgrading Peruvian industry."
Regarding FTA negotiations, Rao anticipated a short process with positive outcomes for both parties.
Agro-industry potential
On the other hand, Indian market openness to Peruvian exports would mainly benefit agro-industrial shipments, Peruvian Deputy Foreign Trade Minister Edgar Vasquez affirmed.
"It [the agro-industry] is the sector with the best chances of success in the short term, given [India's] high fruit and vegetable consumption," he projected.
The FTA would also favor non-agricultural industrial products such as hyperbaric chambers, already exported in moderate amounts.
Lastly, the government official highlighted India represents a major market, with over 1.2 billion people.
"We target the middle- and high-income demographics; that is, 700 million people," he concluded.
(END) SDD/MDV/DHT/MVB