PM Modi arrives in Argentina as part of his 5-nation tour: Read why the visit to the South American nation is strategically important for India
For the third leg of his 5-nation tour, PM Modi reached Argentina on Friday evening (local time). He arrived here following after concluding his two-day visit to Trinidad and Tobago, where he signed six agreements, and was conferred with the country’s highest civilian honour, ‘The Order of the Republic of Trinidad and Tobago’. PM Modi became the first foreign leader to receive the award. His first visit during the 5-nation tour was to Ghana.
PM Modi received a ceremonial welcome after his arrival at the Ezeiza International Airport, in the capital city of Buenos Aires. This is the second time that PM Modi is visiting the country since the G20 Summit in 2018. In the last 57 years, this is the first time that an Indian Prime Minister has arrived in the country for a bilateral visit. The Indian diaspora in Argentina accorded a grand welcome to PM Modi after his arrival in a hotel in Buenos Aires.
According to the Ministry of External Affairs (MEA), during his visit, PM Modi will hold talks with Argentinian President Javier Gerardo Milei on a wide range of issues, including defence, agriculture, mining, oil and gas, renewable energy, trade and investment, to enhance the partnership between the two countries.
Argentina’s rich mineral reserves
The South American country is blessed with vast reserves of critical minerals such as lithium, copper, and shale gas, which make it a potential long-term energy partner for India at a time when it is trying to expand and diversify its energy supplies. Argentina has the world’s second-largest shale gas reserves, mostly untapped, and the fourth-largest shale oil reserves. It also has significant reserves of conventional oil and gas deposits.
Argentina is one of the three countries in the Lithium Triangle, along with Bolivia and Chile. Lithium Triangle is a region having rich Lithium reserves, located in the Andes Mountain range encompassed by the borders of the three South American countries. Lithium is an area of interest for India as it is a crucial component in rechargeable batteries of mobile phones, laptops, electric vehicles and grid storage, and therefore is essential for India’s clean energy goals. India has already made a move towards procuring Argentinian lithium with Khanij Bidesh India Ltd. (KABIL), a joint venture firm of the Indian government, securing rights for lithium exploration in the Catamarca province of Argentina.
Moreover, Argentina is also working on developing a large-scale liquefied natural gas (LNG) project, called Argentina LNG, to explore the untapped Vaca Muerta shale formation, which is a massive shale formation located in the Neuquén Basin of Argentina, known for its substantial unconventional oil and gas reserves. With Argentina aiming to expand its LNG exports internationally, the project, planned in a phased manner, intends to boost Argentina’s LNG exports up to 30 million tons per year by 2030. The country is also looking to expand its LNG exports internationally. It has also indicated its interest in attracting Indian investment in the upstream sectors.
Bilateral trade between India and Argentina
In the past year, the bilateral trade between India and Argentina went beyond $5.2 billion. India is among the top six trading partners of Argentina. Historically, the trade between the countries was focused on edible oils but the countries have recently expressed their inclination towards expanding their trade ties to include sectors like defence, energy, mining, and trade and investment. Argentina has indicated interest in importing Indian pharmaceuticals, medical equipment and IT services, while India is also looking to access Argentina’s agricultural market.
The economic visions of both the country seem to align as the Argentinian President, Javier Milei, who took charge in December 2023, expressed his openness to have economic partnerships beyond the West, and India is also manoeuvring to revive trade relations with MERCOSUR, (or ‘the Southern Common Market’), a South American trade bloc focused on regional economic integration. Argentina, a founding member of the bloc, has also expressed its desire to reform the MERCOSUR.
India-Argentina defence cooperation
The countries are also expected to hold discussions on defence collaboration, digital public infrastructure, and telemedicine. Argentina showed interest in India’s defence systems, like the Tejas light combat aircraft. It was also inspired by India’s large-scale digital governance platforms and affordable healthcare delivery models. Some future collaboration between the space agencies of the two countries, which have worked together in the past, might also be formalised for a low-cost satellite deployment. The two countries also share a common stance on the issue of terrorism. Notably, Argentina was among the first countries to condemn the 22 April Pahalgam terror attack. With a history of terrorist attacks, which happened in 1992 and 1994, Argentina has an understanding of the threat of terrorism.
Significance of PM Modi’s visit to Argentina
With the volatility in the Middle East, India is gradually working towards removing its energy supply dependence on the Middle Eastern countries and diversifying its energy supplies to evade any conflict-driven market fluctuations. PM Modi’s ongoing visit to five nations, including Argentina, is a significant step in that direction. Over the last few years, when some major conflicts have taken place around the world, from the Russia-Ukraine war that started in 2022 to the latest Israel-Iran war, India has learnt that the best bet is to have multiple options in the basket when it comes to energy supply. India’s decision to import Russian crude oil at cheaper rates following the Russia-Ukraine conflict, despite America’s threats, was in line with India’s strategy to diversify its energy supply. This is important for the stability of the country’s economy. With this vision, the Indian government is actively working towards establishing trade ties with countries which could be India’s potential energy partners.
After Argentina, PM Modi will travel to Brazil to attend the 17th BRICS Summit, which will be followed by a state visit. And in the finak leg of his journey, PM Modi will travel to Namibia. He has already visited the countries of Ghana and Trinidad and Tobago.
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