Argentina has agreed to reduce barriers that have made it difficult for Indian pharmaceutical companies to enter its market, the Ministry of Commerce and Industry said on Saturday. The move is expected to open up more opportunities for Indian drugmakers in the South American country. It could also help improve access to quality and affordable healthcare in Argentina.

"Argentina has committed to work towards upgrading India from Annex II to Annex I under its pharmaceutical regulatory framework and reducing barriers to entry," the ministry said. The commitment was discussed during the visit of Commerce Secretary Rajesh Agarwal to Buenos Aires this week.

Agarwal visited Argentina to participate in the India-Argentina Joint Trade Committee (JTC) meeting. The meeting took place on August 24, 2026, at Palacio San Martín in Buenos Aires. The discussions focused on strengthening trade and investment ties between the two countries.

Trade between India and Argentina has continued to grow steadily. Bilateral trade crossed $6.5 billion in 2025. The two countries have recorded annual trade growth of more than 17 per cent. The latest discussions aim to build on this growth and create more opportunities for businesses in both markets.

The pharmaceutical sector emerged as an important area of discussion during the meeting. Argentina's decision to work towards moving India from Annex II to Annex I under its pharmaceutical regulatory framework could make it easier for Indian pharmaceutical companies to access the Argentine market. The reduction of entry barriers is also expected to support the expansion of Indian medicines in the country.

The two sides also discussed investment opportunities in key sectors such as mining, energy and infrastructure. India's continued involvement in Argentina's lithium sector was part of these discussions. The two countries have been working together through KABIL, an Indian state-owned mining company involved in securing critical mineral resources.

KABIL's mining activities in Catamarca have made significant progress. The project is the first lithium mining initiative by an Indian company in Argentina. The company has completed Phase II drilling at the site, marking further progress in its efforts in Argentina's lithium sector.

The discussions also identified several emerging sectors where India and Argentina could expand cooperation. These include aviation, space technology, telecommunications and digital services. Both sides also see opportunities in areas such as 5G, artificial intelligence and digital infrastructure.

The visit also assumed importance as India and the Mercosur trade bloc continue efforts to expand their existing preferential trade agreement. Mercosur is a Latin American trade bloc that includes Brazil, Argentina, Uruguay and Paraguay. India has a Preferential Trade Agreement with Mercosur, which came into effect on June 1, 2009.

India and Mercosur are now looking to expand the scope of the existing agreement. Discussions have progressed on the Terms of Reference for the proposed expansion. The adoption of digital certificates of origin was also discussed as part of efforts to simplify trade procedures.

Digital certificates of origin are expected to make cross-border trade more efficient for businesses. They can reduce paperwork and help streamline trade-related processes between the participating countries.

The latest engagement reflects India's broader efforts to strengthen its economic and commercial ties with Argentina and the wider Latin American region. Pharmaceuticals, lithium, energy, infrastructure and emerging technologies are emerging as important areas of cooperation.

With bilateral trade already crossing $6.5 billion and continuing to grow at more than 17 per cent annually, both countries are looking to deepen their economic partnership. The proposed changes in pharmaceutical regulations could give Indian companies greater access to Argentina, while cooperation in mining and new technology sectors could create additional opportunities for investment and trade.