India and Peru close to signing free trade agreement, says H.E. Mr. Velarde
Ambassador invites Indian investment in mining, agriculture, tourism and fisheries
“Peru and India share rich history, cultural heritage and diverse natural resources and there is enormous potential to develop a strong and lasting bilateral relationship. Peru has one of the oldest civilisations in the Americas corresponding to the Harappan civilization in India and both countries share the common vision of ’Progress and Sustainability’. Peru has a stable macroeconomic condition, open trading system, stable policy ®gulation and transparent legal system. Peru can be the gateway for Indian companies to the world market as it has signed 22 free trade agreements with preferential market access to 46 countries. We are proposing a free trade agreement with India and seven rounds of negotiations are over. We hope to conclude the negotiation soon to promote trade and investment between both the countries,” said H.E. Mr. Javier Manuel Paulinich Velarde, Ambassador of the Republic of Peru at an interactive meeting organized by All India Association of Industries (AIAI) and World Trade Center Mumbai at WTC Mumbai.
The Ambassador invited Indian investment in mining, agriculture, tourism and fisheries, which are the dominant sectors in Peru. He said, “Peru has diverse agro-climatic condition and it is the leading exporter of blueberries, quinoa, grapes, avocadoes, bananas, nuts, mangoes and citrus fruits such as mandarins. Peru is also a leading exporter of fish meal, fish oil, which are essential ingredients in aquaculture. The country has 3,000 km of coastline with diverse species. In the mining sector, Peru has rich reserves of gold, silver, copper, zinc, lithium, molybdenum and other minerals. Our second largest gold export destination is India. We invite Indian companies to invest in mining and exploration areas.”
In the cultural and tourism sectors, the Ambassador informed, “Peru has an Award winning culinary tradition. We connect cultures through gastronomy. Peru’s historic site Machu Picchu, which is one of the seven wonders of the world, is also the first tourist destination to be certified carbon neutral by the Green Initiative.
In his remarks, Mr. Roy Postigo, Trade Specialist, Promperu India explained the ease of doing business in Peru. He said, “Peru is strategically located in the middle of South America. I invite Indian companies to invest in Peru as it is easy to open an office or establish a company in our country. Peru offers equal treatment for local and foreign investors, there is no restriction on repatriating profits outside the country, our currency is stable and we protect right to private property. The four focus sectors for attracting foreign investment are food processing, green energy, tourism and textile. Tourism is a focus sector for India-Peru relations as we promote movement of tourists from both the countries.”
Mr. Postigo informed that Peru has developed Chancay port, the biggest port in Western part of South America and this will reduce cargo transit time for exports to Asian countries. We invite Indian investments in the industrial park near this port area.
Mr. Postigo further remarked, “This year, I expect India-Peru trade to touch USD 5 billion led by strong growth in export of gold and other minerals from Peru. We can strengthen two-way trade in agriculture, mining and manufactured goods. Peru has diverse geographic and climatic conditions favourable for cultivation of cocoa, mangoes, 4,000 varieties of potatoes and other fruits & vegetables. Peru already exports blueberries, quinoa and avocadoes to India and it is planning to export frozen berries as well. Peru has huge tourism potential as it has rich wildlife resources, largest camel population in South America and it is the origin of Amazon river.
Speaking on this occasion, Dr. Vijay Kalantri, President, All India Association of Industries (AIAI) and Chairman, WTC Mumbai pointed out, “Peru has a conducive legal and regulatory system for doing business in Latin America. India-Peru trade is hardly USD 4 billion today. We should aim to double this trade in next three years by identifying focus sectors, exchanging trade delegations and conducting other trade promotion events. WTC Mumbai and AIAI are planning to organize India-Latin America Economic Conclave next year to strengthen economic and cultural relations with Latin American countries. The earlier edition of the Conclave received encouraging response from 17 Ambassadors and Consular Corps of various Latin American countries.”
Dr. Kalantri suggested Peru to consider India as a reliable source of imports for a wide range of agriculture and manufacturing goods, including pharmaceuticals, engineering and chemicals. He also proposed the idea of trade settlement in local currency, promoting people to people ties and deepening tourism and cultural exchange.
Earlier in his welcome address, Capt. Somes Batra, Vice Chairman, WTC Mumbai pointed out, “WTC Mumbai assures all possible support to deepen India’s trade and investment with Peru. Peru is an amazing country of contrast with plains on the Pacific coast, Andean mountain, rainforest, diverse climatic condition and rich natural resources. The country is one of the fastest growing economies in South America and it has the largest reserves of silver, gold and other natural resources. Peru has trade agreements with several countries and soon India will also sign a free trade deal with Peru.”
Capt. Batra suggested to promote cultural ties, especially through tourism and encouraging film shooting in each other’s countries. He also hinted at huge potential for collaboration in gems and jewellery sector as Peru has one of the richest reserves of gold and silver.
The event was attended by members of trade & industry, consular corps, consultancy organisations, financial institutions and corporate professionals.
H.E. Mr. Javier Manuel Paulinich Velarde, Ambassador of the Republic of Peru (4 th from left) being felicitated by Dr. Vijay Kalantri, President, All India Association of Industries (AIAI) (3 rd from left). Also seen in the photograph are: (from left to right) Ms. Rupa Naik, Executive Director, WTC Mumbai, Mr. Roy Postigo, Trade Specialist, Promperu India, Capt. Somesh Batra, Vice Chairman, WTC Mumbai and Ms. Aakruti Bagwe, Director- Operations, WTC Mumbai
Dr. Vijay Kalantri, President, All India Association of Industries (AIAI) (2 nd from left) greeting H.E. Mr. Javier Manuel Paulinich Velarde, Ambassador of the Republic of Peru. Also seen in the photograph are (from left to right) Mr. Roy Postigo, Trade Specialist, Promperu India and Capt. Somesh Batra, Vice Chairman, WTC Mumbai.