PM Modi arrived in Argentina in the third leg of the five-nation trip on July 5^th. This is the first bilateral visit by an Indian Prime Minister to the country in 57 years. PM Modi last visited Argentina in 2018 for the G20 Summit. On his arrival in Buenos Aires, the City Chief conferred PM Modi with the Key to the City of Buenos Aires.

Trump’s erratic trade tariffs and Europe’s carbon tax hurdles have forced nations to realign and diversify their supply chains. PM Modi’s five-nation trip spanning the global south attempts to chart a new course by rediscovering shared values to forge economic partnerships with resource-rich nations.

Irrespective of the leadership at the helm of affairs, business and trade have largely driven the course of the India-Argentina relationship. India is the fourth-largest trade partner of Argentina. India accounts for 90% of Argentina’s Soybean oil exports.

After the Ukrainian war, India has routed its sunflower oil imports from Argentina. Now, vegetable oils account for more than 50% of India-Argentina bilateral trade, which reached $5.2 billion in 2024. The trade peaked at $6.4 billion in 2022 but subsequently dropped due to drought in Argentina. As per reports, the first quarter of 2025 recorded a 53.9% increase in trade. Other major exports of Argentina include finished leather, cereals, pulses, residual chemicals and allied products. Two-wheelers are one of the major exports of India to Argentina, and pharmaceuticals, textiles are next in line. Indian investments in Argentina, valued at over $1.2 billion, include Mphasis, TCS, Comviva, Infosys, Bajaj Motorcycles, TVS, Royal Enfield, Hero Motors, and Godrej. Conversely, Argentinian investments in India stand at $120 million, comprising Globant, OLX and TECHINT.

Argentina has the World’s second-largest shale gas reserves and third-largest shale oil reserves and is part of the Lithium triangle, the other two being Bolivia and Chile. In February 2023, India and Argentina signed agreements to promote cooperation in oil and natural gas.

For the first time ever, India’s KABIL (Khanij Bidesh India Limited) inked a deal with Argentina’s CAMYEN (PSU in Catamarca province) to lease five lithium blocks for mining and exploration in January 2024. In February 2025, KABIL concluded another MoU with Argentina’s Greenco for five Lithium blocks. Other than mineral and energy cooperation, India and Argentina have ramped up defence and nuclear cooperation. India’s Hindustan Aeronautics Limited (HAL) and the Argentine Air Force sealed the first commercial agreement for the supply of helicopter spares and engine maintenance. In November 2024, the Heavy Water Board of India signed a four-year agreement for the supply of heavy water with Nuclear Electric Company of Argentina (NASA).

Amid growing India’s energy needs and China’s weaponisation of rare earth minerals, Argentina which also has significant copper reserves could serve as a crucial, reliable partner. After the warm welcome at Casa Rosada Palace, leaders, PM Modi and President Javier Milei reviewed the entire range of bilateral cooperation and decided to diversify and expand the trade basket.

To realise this, India sought Argentina’s support in expanding the India-MERCOSUR Preferential Trade Agreement (PTA) signed in 2004 and which came into force in 2009.PTA, which is less comprehensive than FTA, removes tariffs on a limited number of goods. MERCOSUR, the fourth largest trade bloc globally behind the European Union, North American Free Trade Agreement (NAFTA) and the Association of South East Asian Nations (ASEAN). MERCOSUR include Argentina, Brazil, Paraguay and Uruguay.

To explore vital opportunities in health care and pharma, PM Modi discussed the possibility of moving India from Annexure II to Annexure I of Argentina's Pharmaceutical Regulatory Framework to expedite the entry of life-saving, affordable Indian pharmaceuticals into the Argentine market.

ISRO launched Argentina’s first space satellite in 2007. In 2023, ISRO and Argentina’s CONAE signed several outer space cooperation framework agreements. Seeking to steadily elevate the defence partnership, Argentina's Defence Minister made the first-ever bilateral visit to India in 2023. This was preceded by two trips by the Argentine Air Force commander and the Argentine Armed Forces chief in 2022 to HAL. After decommissioning the Dassault Mirage fleet in 2015, Argentina is looking a replacement and India’s LCA Tejas jet was in contention. Argentina has also expressed interest in BrahMos.

India and Argentina traditionally support each other in research and logistical support in Antarctica, especially Bharati and Maitri (India’s permanent research stations in Antarctica) and cooperate in the UN peacekeeping missions. Besides strengthening space collaboration, countries are exploring avenues in telemedicine, digital health solutions, capacity building, agriculture and food security, green energy, science and technology and people-to-people linkages. Yoga and Ayurveda are very popular in Argentina.

Though separated by oceans, countries share democratic values and share inclusive, global development vision and hence are natural partners. India welcomed Argentina to join the India-led International Big Cat Alliance (BCA). Argentina backs India’s permanent membership to an expanded UNSC and is counting on India’s support for the resumption of negotiations with the UK on the Malvinas Islands dispute. Argentina, which strongly condemned the Pahalgam attacks, adopts a tough stance on terrorism. Argentina faced two brutal terror attacks- the 1992 Israeli Embassy bombing and the 1994 AMIA Jewish Centre bombing in Buenos Aires.

President Milei showed great interest in India’s Drone Didi initiative in improving agricultural production and usage of drone technology for conservation of fauna, animal husbandry, surveillance of high-tension power transmission and discussed the possibility of using drone to tackle IUU (Illegal, Unregulated and Unreported) fishing especially in Argentina’s Exclusive Economic Zone (EEZ). Cooperation in digital Infrastructure, building a startup ecosystem and sports also featured in the talks.

PM Modi’s visit to Argentina comes at a time when the country is going through a phase of pathbreaking economic reforms. President Milei, known for his radical approach and kick-named ‘anarcho-capitalist’, is endeavouring to revive the economic outlook of the country through legislation- Large Investment Incentive Regime or RIGI, offering tax breaks for investments. This legislation has increased energy investments, steering the shale oil and gas production. Consequently, Argentina has transitioned from being an energy importer to an exporter.

Impelled by the geopolitical uncertainties, plunging foreign reserves and rising inflation, Argentina directed energy investments towards the lucrative shale patch, Vaca Muerta. Asserting ‘resource nationalism’, President Milei is boldly tapping into the natural resources to resurrect the economic fortunes of Argentina.

India and Argentina elevated relations to a ‘strategic partnership’ in 2019 during President Mauricio Macri's visit. Latin America offers huge potential for economic opportunities. Interestingly, the word ‘strategic’ is largely attributed to India’s relations with influential countries. But in the era of diversification, interconnectedness, to meet its growing needs, India must forge ties with countries far and distant.

Latin America, though geographically distant, shares several commonalities in terms of world vision and similar challenges like food security, climate change, reliable supply, cybersecurity, and terrorism. As the World transitions into Industrialisation 4.0, countries require critical mineral elements to build modern technologies and infrastructure for the large-scale launch of Artificial Intelligence and Machine Learning. India can’t afford to lag in this technological evolution. In tandem with its aspirations to build a scientifically advanced economy, India must ensure a steady supply of critical resources.  India must widen its horizons and build reliable partnerships with countries.

Besides being developing countries, the global south identity also binds India and Argentina. High-profile visits between countries in recent times have laid the ground for building a pragmatic relationship. PM Modi’s historic visit to Argentina signals India’s readiness to deepen the expanding economic partnership.

References

1. https://www.mea.gov.in/media-briefings.htm?dtl/39763/Transcript_of_Special_media_briefing_by_MEA_on_Prime_Ministers_visit_to_Argentina_July_05_2025
2. https://www.indembarg.gov.in/page/india-and-argentina/#:~:text=Indo%2DArgentine%20trade%20experienced%20a,trading%20partner%20and%20export%20destination.
3. https://www.orfonline.org/expert-speak/india-argentina-an-example-in-economic-diplomacy
4. https://theprint.in/opinion/modi-visit-shows-argentina-now-matters-the-resource-rich-economy-has-big-lessons-for-india/2681071/