New Delhi, Nov 28: Commerce minister BB Ramaiah on Thursday launched `Focus: Latin America' programme to further enhance trade with the countries in the region during the remaining part of 1997-98 and the whole of 1998-99.

A comprehensive action plan has been prepared in consultation with the apex chambers of commerce and industry, India Trade Promotion Organisation (ITPO) and the concerned export promotion councils (EPCs) covering market surveys, visit of trade delegations, buyer-seller meets, participation in trade fairs, seminars and signing of joint business council agreements.

The programme will concentrate on Latin America, in general, with added emphasis on the major trading partners.

Three major product groups have been identified -- textiles, engineering products and chemical products as focussed product groups under the programme which would be an integrated effort of the government, EPCs, chambers of commerce and industry and institutions like Exim Bank and Export Credit Guarantee Corporation. Commerce secretary P P Prabhu, ITPO chairman and managing director Yogesh Chandra and other senior officials were present at the occasion along with representatives of apex chambers.

ITPO will hold an India exhibition in Mexico city in March 1998. The exhibition is being designed to catalyse and intensify trade exchanges between India and Mexico in particular and India and Latin American countries in general.

Institutional mechanisms such as joint commission, trade committee and commercial councils with Latin American and Caribbean countries some of which have been there for sometime and some having been established recently will be activated so that there is increased frequency of interaction at the highest level.

Exim policy initiatives and trade promotion measures have also been taken to provide incentives for Indian businessmen to explore the Latin American markets. Distance, language barriers and absence of economic and fast shipping links have been cited as major constraints which affect the expansion of economic and commercial relations between India and Latin America.

However, one of the biggest constraints continues to be the information gap and therefore the programme has been designed to bridge this gap. The possibilities of enhanced trade and economic cooperation between India and Latin American countries are immense.

India's trade with the Latin American region has increased from $474 million in 1991-92 to $1,052 million (or $1.05 billion) in 1996-97, a record increase of over 122 per cent in just five years. In 1996-97, India's bilateral trade registered a growth of about 10 per cent and exports to Latin America increased by 30 per cent to reach $485 million, although the balance of trade remains adverse to India by about $85 million.

The current financial year has shown a very good growth in bilateral trade. In April-August, bilateral trade has grown by over 22 per cent. The major items of India's exports to the region continue to be textiles (including readymade garments), engineering products, automobiles and their components, bulk drugs and chemicals and allied products. India's main imports from the region are iron and steel, non-ferrous metals, crude minerals and chemicals.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.