Historical Context
India and Peru established formal diplomatic relations on March 26, 1963, marking the beginning of a long-standing partnership between the two nations. Initially, the Indian embassy in Chile served as the representative body for Peru, demonstrating India's commitment to fostering relationships across continents. It wasn't until September 1969 that India opened its resident diplomatic mission in Lima, further solidifying its ties with Peru, followed by the appointment of the first resident Ambassador in November 1973. This foundational relationship has paved the way for ongoing diplomatic and economic collaboration.
Economic Expansion and Cooperation
The 1990s marked a turning point for India-Peru relations, as both countries experienced significant economic growth, with India advancing technologically and Peru striving to increase its influence within Asian markets. This mutual interest was bolstered by Peru's inclusion in the Asia-Pacific Economic Cooperation (APEC) forum, which encouraged deeper economic interaction. As Peru transitioned into one of the fastest-growing economies in Latin America, Indian interest in trading and investment opportunities within the country surged, leading to a notable increase in bilateral trade and investment agreements.
Diplomatic Engagements
High-level diplomatic visits have been instrumental in strengthening the ties between India and Peru. Noteworthy visits include that of Peruvian President Alan Garcia, who was the chief guest at India's Republic Day celebrations in 1987, and President Alberto Fujimori's trip to India in May 1997. In return, Indian President K. R. Narayanan visited Peru in 1998, underscoring the mutual respect and aspiration for collaboration between the leadership of both nations. Further cementing these diplomatic ties, the Congress of Peru reactivated the Peru-India Parliamentary Friendship League on April 30, 2003, while the Indian Parliament established its own India-Peru Parliamentary Friendship Group in December 2007.
Recent Developments and Future Prospects
In October 2013, India and Peru took significant steps towards deepening their relationship by signing agreements focusing on cooperation in education and cultural exchange, as well as establishing a Joint Commission to enhance bilateral relations. These agreements reflect an understanding of the importance of cultural diplomacy in fostering mutual respect and collaboration. Moreover, Peru has expressed support for India's aspirations for a permanent seat in the United Nations Security Council and has shown a balanced perspective on the Kashmir issue, advocating for bilateral dialogue over international intervention.
In recognition of their 55 years of diplomatic relations, India's Vice President Venkaiah Naidu visited Peru in May 2018. The discussions during this visit highlighted Peru's interest in pursuing a free trade agreement with India, with significant focus areas being the pharmaceuticals and IT sectors. This could potentially unlock new avenues for trade and investment, benefiting both economies while enhancing their bilateral ties even further. With ongoing conversations and an increasingly intertwined economic relationship, the future of India-Peru relations seems poised for continued growth and collaboration.
Growth of Bilateral Trade
Bilateral trade between India and Peru has experienced remarkable growth over the past two decades, especially notable from the late 2000s through the early 2010s. In 2007, the trade volume was a modest US$250 million. However, by the fiscal year 2018-19, this figure surged to approximately $3.126 billion, showcasing a robust economic partnership that has developed significantly in a relatively short time. A milestone was reached in 2012 when the trade crossed the billion-dollar threshold for the first time, positioning Peru as India’s seventh-largest trade partner in the Latin American region, following the likes of countries such as Brazil, Venezuela, and Argentina.
One of the standout years for this bilateral trade was 2017-18, which recorded an astounding increase of 76.95%, pushing the total trade to $3.137 billion that year. This substantial growth can be attributed to a diverse range of commodities exchanged between the two nations. In 2018-19, Indian exports to Peru were valued at $721 million. These exports primarily consisted of iron and steel towers, automotive products, and pharmaceuticals, among others. Conversely, India's imports from Peru that same year were significantly higher at $2.405 billion, with key imports including copper, gold, and various minerals, highlighting Peru’s rich natural resource base.
Economic Significance and Future Prospects
The economic relationship between India and Peru is underpinned by several complementary strengths. India is known for its robust manufacturing sector and technological advancements, while Peru is rich in natural resources, particularly minerals and agricultural products. The diverse range of goods exchanged indicates a mutual benefit that both economies can derive from collaboration. The current negotiations for a bilateral free trade agreement (FTA) represent a significant step towards further enhancing trade relations and are aimed at eliminating tariffs, reducing trade barriers, and increasing market access for both nations.
Such an agreement could foster not only an improvement in trade volumes but also encourage investments in each other's markets, thereby laying the groundwork for deeper economic cooperation. As both countries navigate through the challenges of a global economy that is increasingly interconnected, the potential for collaboration in sectors like pharmaceuticals, technology, and sustainable agriculture remains promising. With continued diplomatic engagement and focus on shared economic goals, India and Peru are likely to witness an even more dynamic partnership in the coming years, building on the strong trade relations established thus far.
Investment
The economic collaboration between India and Peru has been significantly bolstered by a series of investments from Indian companies in various sectors, particularly mining. Notably, several Indian firms have established a presence in Peru's rich mineral landscape, with investments earmarked for minerals such as iron ore, manganese, phosphate, and gold. One of the prominent players in this sector is IFFCO, which holds a substantial stake in a large phosphate mine located in northern Peru. Additionally, Zuari Agro has invested in a rock phosphate reserve, securing a 30% stake valued at approximately $36 million. This focus on natural resources reflects India's growing interest in securing necessary raw materials to support its industrial and economic growth.
In addition to mining, the oil and IT sectors have seen a surge in Indian investments. Reliance, for instance, successfully acquired an oil block in Peru, demonstrating the strategic interest Indian companies have in the energy sector. On the IT front, several Indian firms are actively operational in Peru, with Tata Consultancy Services being a noteworthy player in Lima. Furthermore, Tech Mahindra marked its entry into the Peruvian market by acquiring Israeli firm LeadCom, thus expanding its footprint in South America.
The collaboration has not been one-sided; Peruvian companies have also ventured into India. The AJE Group, a notable beverage manufacturer from Peru, established AJE India Pvt. Ltd. in Maharashtra, focusing on the production of soft beverages. This subsidiary began operations in December 2010 and has invested around $15 million in its Indian operations by 2016, indicating a robust commitment to the Indian market. Moreover, Peruvian machinery firm Resemen S.A.C. has made strides in India through its subsidiary, Reliant Drilling Ltd., which was formed following a contract award from Hindustan Zinc Ltd. This agreement highlights the growing trend of cross-border business endeavors.
Furthermore, other Peruvian mining service firms, such as Opermin and AAC Mining Executors Ltd., have also expanded their operations into the Indian market, enhancing bilateral commercial ties. Vistony, a manufacturer of lubricants, has also established production capabilities by setting up a plant near Rewari in Haryana. These initiatives signify a deepening economic relationship between India and Peru, characterized by mutual investments that have relevance across various sectors, fostering trade, innovation, and collaborative growth.
Defence Relations Between India and Peru
India and Peru have cultivated a strategic partnership in defence through the signing of a significant agreement in October 2013. This agreement not only emphasizes defence cooperation but also addresses the critical issue of the proliferation of weapons of mass destruction, reflecting a mutual commitment to global security. The accord opens avenues for Peru to send its military personnel to India, enhancing their skills and capabilities through rigorous training programs.
A key component of this defence collaboration is the opportunity offered by India to Peruvian defence officials to participate in prestigious training courses such as those at the Defence Services Staff College in Wellington and Kochi. These institutions are known for their comprehensive military education and training, and their global recognition adds immense value to the professional development of the Peruvian military staff. The engaged training programs serve to foster not only military proficiency but also deeper ties between the armed forces of the two nations.
Further strengthening this partnership, the defence agreement also encompasses provisions for the sale of spare parts to the Peruvian military. This aspect is crucial as it enhances logistical support and operational readiness of Peru's armed forces, ensuring that they can maintain their equipment effectively. In a demonstration of this cooperation, Peru sent a naval officer to attend the 53rd National Defence College (NDC) course in New Delhi in 2013, showcasing the commitment to collaborative training and knowledge exchange.
Overall, the defence relations between India and Peru are marked by mutual respect and shared interests, providing a foundation for future cooperation in tackling regional security challenges, participating in joint exercises, and exploring further avenues of collaboration in defence technology and procurement.
Indian Foreign Aid to Peru
India has played a significant role in providing assistance to Peru, particularly in times of crisis. A notable instance of this support arose following the devastating earthquake that struck Peru on August 15, 2007. In response to the disaster, India generously donated $500,000 dedicated to relief efforts aimed at helping those affected by the calamity. This contribution reflects India's commitment to humanitarian aid and underscores a relationship built on mutual support during challenging times.
In addition to disaster relief, India has also shown its dedication to environmental sustainability in Peru. Funding has been allocated for an afforestation program at a park in Lima, which is honored with the name of Mahatma Gandhi, a global symbol of peace and environmental stewardship. This initiative not only contributes to reforestation efforts but also serves as a reminder of the enduring ties and shared values between the two nations, fostering a cultural connection through India’s engagement in environmental protection.
Furthering educational ties, citizens of Peru have access to various scholarships provided under India's Indian Technical and Economic Cooperation (ITEC) Programme and the Indian Council for Cultural Relations (ICCR). These initiatives enable Peruvian students to pursue higher education and specialized training in India, enhancing skills development and cultural exchange. Moreover, several Peruvian diplomats have participated in training courses at India’s Foreign Service Institute, known as the Professional Course for Foreign Diplomats (PCFD). This represents a significant investment in diplomatic relations and professional development, strengthening the bilateral ties between the two countries.
Overall, these collective efforts illustrate the depth of India-Peru relations, which encompass humanitarian aid, environmental cooperation, and educational exchanges, reflecting a shared commitment to mutual growth and support in various areas of development.
Cultural Relations
India and Peru have fostered a strong cultural partnership since the signing of a bilateral agreement on cultural cooperation in 1987. This framework laid the foundation for various initiatives aimed at enhancing mutual understanding and cultural exchange between the two nations. Recognizing the value of cultural diplomacy, both countries have worked collaboratively to promote their diverse heritages, languages, and traditions. As a result, numerous cultural events, exhibitions, and festivals showcasing the arts, music, and culinary richness of Peru have been organized in India, while Indian cultural programs have also been presented in Peru.
In June 2007, the establishment of the Indo-Peruvian Friendship Association, known in Hindi as Bharat-Maitreyi Samiti, marked a significant milestone in people-to-people ties. This civil organization plays a pivotal role in promoting friendships and understanding by organizing activities that highlight Peruvian culture in India. The association focuses on enhancing interest in the Spanish language among Indians and facilitating cultural exchanges, particularly by encouraging the movement of professors and students between the two countries for academic and cultural enrichment.
Complementing these efforts, Mundo Latino, affiliated with the Embassy of Peru in New Delhi, serves as a cultural and educational hub dedicated to promoting Latin American culture. This center of excellence offers Spanish language courses, salsa dancing classes, and various workshops, catering to the growing interest in Latin American culture within India. Additionally, it provides courses in English and Hindi as foreign languages, creating an inclusive environment for cross-cultural learning and fostering a broader appreciation of diverse languages and cultures. Through these institutions and initiatives, India and Peru continue to strengthen their cultural ties, paving the way for deeper connections and collaborations in various fields.
Indian Community in Peru
As of December 2016, approximately 500 Indian citizens live in Peru, showcasing a modest yet vibrant presence in the South American nation. The Indian community's primary engagement lies in business and trade, reflecting their entrepreneurial spirit and contribution to Peru's economy. Many Indians have established themselves in various sectors, ranging from retail to import-export businesses, forming a vital part of the business ecosystem in cities like Lima, the capital, and other urban areas.
In addition to business pursuits, some members of the Indian community in Peru dedicate their efforts to social work. They collaborate with charitable organizations, including the Missionaries of Charity, which was founded by Mother Teresa, and other Christian organizations in regions such as Lima, Chimbote, and Puno. This involvement highlights the community's commitment to social causes and their contribution to local humanitarian efforts.
Moreover, the Indian presence is further enriched by cultural and spiritual organizations. Groups like Hare Krishna, Sai Baba, and Brahma Kumaris resonate with the Indian ethos and provide a space for cultural expression and spirituality. These organizations not only serve as a conduit for community members to engage with their cultural roots but also foster intercultural dialogue through various events and activities that invite participation from the broader Peruvian population. Through these efforts, the Indian community continues to nurture its identity while contributing to the rich cultural tapestry of Peru.
Peruvian Community in India
As of 2013, the presence of Peruvians in India is relatively modest, with an estimated 200 individuals residing in the country. The composition of this community is largely female, with many women taking up roles that contribute significantly to various sectors. The majority of Peruvians in India are engaged as professors and engineers, showcasing a skilled workforce contributing to educational and technological advancements. Additionally, a notable portion of the community consists of students, who are pursuing higher studies in diverse fields such as engineering, business, and the arts.
The geographical distribution of the Peruvian community in India is primarily concentrated in the National Capital Region (NCR), specifically in Delhi, which serves as a cultural and educational hub for expatriates. Beyond Delhi, Peruvians can also be found in states like Haryana, Maharashtra, Uttar Pradesh, Karnataka, and Rajasthan. Each of these regions offers unique opportunities, further fostering a sense of community among Peruvians in India. Some members of this diaspora have established personal ties through marriage to Indian citizens, further bridging the cultural gap between the two nations and promoting greater understanding.
In recent years, socio-cultural interactions between Peru and India have been on the rise. This includes an interest in each other's cuisines, traditions, and festivals, which has strengthened ties between the two nations. Additionally, academic collaborations and cultural exchanges have paved the way for deeper connections, allowing Peruvians in India to share their heritage while assimilating into Indian society. Overall, the Peruvian community in India not only enriches the cultural tapestry of the country but also plays an essential role in enhancing bilateral relations between India and Peru.