Why India is a good partner for the Pacific Alliance?

The report talks about how India is emerging as one of the main contributors to the global middle class and with it great demands for the global economy as food products and energy generation for its urbanization. In this regard, one must also consider the economic complementarity between the two trading blocs.

ABOUT THE CONFERENCE

Asia Pacific currently plays a central role in the global economy, and there is a growing relationship between this region and Latin America with regard to trade as well as investment. In this context, the Pacific Alliance is considered the most liberal and fastest growing trade bloc in Latin America, which shows great potential in the interaction between trade and investment with complementary economies such as India. On the one hand, this is because India plays a leading role in the growth of consumption due to significant expansion of its middle class and the resulting demand for food. On the other hand, the Pacific Alliance is expected to become a large supplier of both fresh and processed foods. Lastly, both regions have a demand for investment for their growing energy consumption, so there are investment opportunities between the two economic blocs.

Why this international conference?

With this video we give you a global overview of two major trading blocs: Asia and Latin America; primarily focused in India and member countries of Pacific Alliance and the important role both can play.

MAIN TOPICS

Economic Relations between Asia and LATAM

Asia Pacific’s role in the global economy

Asia Pacific will host most of the global middle class in the next 15 years, nearly two thirds of global participation and where they concentrate over 60% of world consumption of this social stratum. On the other hand, will play a central role in the global economy as they also have the highest share and growth rate of global GDP over the next 15 years.

LATAM’s role in the global economy

Constituting a large market of 33 countries and a regional GDP of USD 5.98 billion in 2013, this region showed much better economic performance than developed economies and take decisive part of the exceptional growth period for developing economies (2003-2013). Under the strong performance registered in recent times and the abundance of natural resources, energy, water and biodiversity, the region should assume a more important role in the global economy.

Asia Pacific and LATAM Trade

The exports and imports between the two regions have increased over a 14 years period. Exports between Asia-Pacific and LATAM grew 8 times and imports quadruple. Asia and the Pacific became LAC’s second largest trading partner, right behind the US (34%) and well ahead of the European Union (13%), which historically had been the region’s main trading partners. In terms of volume, Asia and the Pacific–LAC trade has grown by a factor of six since 2001, reaching USD 518 billion in 2013.
The exponential growth of bilateral trade is explained by a growing Asian surplus in manufacturing and by an increasing Latin America surplus in agriculture and mining.

Asia Pacific and Latam Investment

Expected that following increased trade patterns (as usual, with some delay), investment flows between Asia and Latin America will further improve in the coming years along the lines of economic complementarities between the regions.
On one side, Latin America and the Caribbean have large untapped natural resources and abundant agricultural land, while Asia Pacific needs raw materials to fuel the growth of the manufacturing sector and feed its large population. Likewise, Latin America doesn’t have enough capital but they do have a large growing domestic market capable to absorb Asian investments and labor resources (especially in Central America).

The role of India and Pacific Alliance

The role of Pacific Alliance

The Pacific Alliance has shown an outstanding growth if compared with the performance of the Latin American region and developed economies. With rising presence in the international market, the economic reforms of their respective governments, the middle class growth, among other factors; further growth is predicted for this bloc at the end of this year (a variation rate of 4%), to the point of exceeding the growth of the world economy (3.8 %), surpassing for even more the growth of Latin America (2.2 %) and developed economies (2.3 %).

The role of India

Over the past two decades, India has emerged as one of the fastest growing economies in the world. With a current population of over 1.2 billion people and sustained growth, the projections of the United Nations estimates that by 2030 the population of India will have surpassed China, reaching 1,476 million people as total population.
Such demographic dividend will pay in terms of economic growth and social development. India´s middle class will cover almost half of its population in fifteen years, reaching 725 million people belonging to this social sector, making it the second country of the world in terms of middle class market size (18% of the world´s middle class).

Trade Perspectives between India and Pacific Alliance: Opportunities in Agribusiness

Trade patterns between India and the Pacific Alliance are intended to replicate the broader scheme of Asia Pacific and Latin America. Furthermore, the rising role of India in the global economy and the emergence of its middle class open exceptional perspectives in the field of Agribusiness, considering the availability of land, water, biodiversity and technology in Latin America and the relative scarcity of those factors in India.

Investment Perspectives between India and Pacific Alliance: Opportunities in Energy

In the next 15 years it is expected that more than 2,200 Indian companies will invest outside overseas. However, in the last two decades, Latin America has received only 4% of FDI outflows from India. However, the increase in international trade, resistance to the global economic turbulence, reducing its inflation, among other factors, has added attraction to Latin America. With this, companies from Latin America and India are finding new synergies and complementarities as they increasingly interact with each other.
In this context, India and the Pacific Alliance have great prospects for growth in energy consumption so that both regions require investment to meet that demand. India and Latin America share many similarities in the forefront of developing energy. Both regions have a goal to cope with the huge development deficit that exists and provide access to energy through renewable energy is one of the main objectives to address this deficit. India and Latin America also face similar problems of financial constraints access to energy.

EVENT PROGRAM

  • 08:00 – 09:00Register and Conference opening ceremony
  • 09:00 – 10:00Bloc 1: Economic relations between Asia and Latam: India and Pacific Alliance

    Economic Relations between Asia and LATAM

    The exports and imports between the two regions have increased over a 14 years period. Exports between Asia-Pacific and LATAM grew 8 times and imports quadruple. Asia and the Pacific became LAC’s second largest trading partner.

    The role of the Pacific Alliance

    The Pacific Alliance has shown an outstanding growth if compared with the performance of the Latin American region and developed economies. With rising presence in the international market, the economic reforms of their respective governments, the middle class growth, among other factors.

    The role of India

    Over the past two decades, India has emerged as one of the fastest growing economies in the world. India´s middle class will cover almost half of its population in fifteen years, reaching 725 million people belonging to this social sector, making it the second country of the world in terms of middle class market size.

  • 10:15 – 10:30Coffee break
  • 10:30 – 11:30Bloc 2: Trade perspectives between India and Pacific Alliance: Opportunities in Agribusiness

    Trade patterns between India and the Pacific Alliance are intended to replicate the broader scheme of Asia Pacific and Latin America. Furthermore, the rising role of India in the global economy and the emergence of its middle class open exceptional perspectives in the field of Agribusiness.

  • 11:45 – 12:45Bloc 3: Investment perspectives between India and Pacific Alliance: Opportunities in Energy

    With this, companies from Latin America and India are finding new synergies and complementarities as they increasingly interact with each other. In this context, India and the Pacific Alliance have great prospects for growth in energy consumption so that both regions require investment to meet that demand. India and Latin America share many similarities in the forefront of developing energy.

  • 13:00 – 13:15Coffee break
  • 13:15 – 14:15Bloc 4: Successful cases
  • 14:15 – 14:20Q&A session

ORGANIZERS

Prospectiva 2020

Business Developer created to identify trends and future investment scenarios within its areas of study: Biotechnology, Information and Communication Technologies, Energy and Environment, and Agribusiness. We identify and promote opportunities for investment, market expansion and technological innovation in these sectors.

Comce

Business Council of External Trade, Investment and Technology (Consejo Empresarial de Comercio Externo, Inversión y Tecnología)

Privately owned Mexican organization dedicated to the promotion of foreign trade, foreign investment and technological development.

GDB Network

Company designed to foster investment, identify business opportunities and develop financial tools such as private equity, venture capital fund and project finance. Its main objective is to support the establishment of new companies, as well as to take those already established to new levels.

Our business model is focused on the economic dynamic of Emerging Markets.

Duesberg Bosson

Boutique financial services & strategic advisory firm based in Mumbai, India with associate offices in Toronto, Abu Dhabi and in Latin America. The firm is focussed on emerging market economies with a focus on India.

DATE & LOCATION
APRIL 2016
Mexico City, Mexico

REGISTRATION

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