India-Peru Comprehensive Trade Agreement in progress

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Amb. Subbarayudu highlights Peru’s National Innovation Programme

Indian trade officials are relentlessly working with their Peruvian counterparts on Comprehensive Trade Agreement while MSMEs from both countries have been urged to explore business opportunities and plan trading strategies.

Governments on both sides are working relentlessly to facilitate the 6th round of negotiations between India and Peru, which were scheduled to take place in April 2020 but hampered due to the COVID-19 global outbreak, said S. Suresh Kumar, Joint Secretary, Department of Commerce.

Multiple discussions have been held and modalities are being explored to conclude the 6th round of negotiations via digital conferencing, informed Kumar through a webinar “India & Peru: Business Opportunities in Trade of Goods and Services & Investments” with a special focus on MSMEs.

Kumar highlighted India’s immense potential and availability of abundant resources and urged Indian industry to explore and leverage the opportunity for exports to Peru in view of the temporary abolition of import duties on notified pharmaceutical products and medical devices.

Luis Cabello, Trade Counsellor of Peru in India, advised both countries’ MSMEs to develop a business plan keeping in mind the ease of doing business and studying the markets to offer products to suit the market requirements.

Cabello underlined several facets of the Peruvian economy that make investments in Peru favourable for Indian investors, including the openness of the economy, macroeconomic stability etc.

He informed that Peru has more than 20 FTAs with other countries, and thus doing business in Peru implies access to other FTA partner markets and urged Indian industry to view Peru as an “extended market”.

The Peruvian government seeks greater investments in agribusiness, mining, healthcare, and services sectors including IT & ITeS, Cloud technologies, AI, medical technologies, hospital management software, banking software, e-commerce, fin-techs.

Indian food products and investments in Indian restaurants in Peru also offer a promising business and market opportunity for Indian industry, Cabello added.

M. Subbarayudu, India’s Ambassador to Peru, also advised industry on both sides to understand the strengths and shortfalls of each other and identify the complementing areas and opportunities to do business in the emerging frameworks. 

He pointed out that India’s commercial engagement with Peru saw a threefold increase in five years from 2014 to 2018.

“Despite a drop in 2019 in the trade indices, India remains the 7th largest global trading partner of Peru and for India Peru continues to be 4th largest partner in the Latin American region,” said the Envoy.

Ambassador Subbarayudu reaffirmed that bilateral commercial engagement will resume in the post COVID-19 world, albeit with new facets.

“Innovative production and trade practices will be the need of the times.”

He emphasised that absorption and adoption of technology across nation is one of the principal objectives of Peru’s National Innovation Programme, and India, with its rich expertise and experience in the IT sector, is an ever-willing technological partner of Peru.

Cooperation in healthcare and access to affordable medicines and medical devices is also a burning need for Peru and with its proven experience and strength in pharmaceutical and healthcare sector, Indian companies stand to benefit immensely in the Peruvian market.

Binational Indo-Peruvian Chamber of Commerce (INCHAM) President Rohit Rao invited Indian industry, specifically the MSMEs to come to Peru emphasising that Peruvian open economy and its multiple FTAs open a much broader market for Indian business interests and this can result in a huge leap for many Indian companies.

To increase awareness about business opportunities for Indian and Peruvian industries and create synergies between Peruvian and Indian MSMEs, and to provide an impetus to the existing thriving commercial and economic partnership between India and Peru in the time of COVID-19,

The webinar was organized by ASSOCHAM, in partnership with Lima-based INCHAM on 22 May 2020.

ASSOCHAM President Dr. Niranjan Hiranandani said the webinar was a great initiative to join the two ends of the world across the globe, calling on the two countries to take “leaps rather than steps” to create a new paradigm.

Reflecting on the need of reducing the world’s overdependence on China, and for advancement of global trade on an equitable basis, Dr. Hiranandani said that this is the right time to take the bilateral trade to the next level.

Noted Peruvian economist, Carlos Anderson, highlighted the complementarities of the Peruvian economy vis à vis the Indian economy and the business opportunities that emerge thereof.

“In these extraordinary times of COVID-19, this webinar is an extra ordinary opportunity since COVID-19 has accelerated the future and India is the country of future,” Anderson pointed out.

Peru is seeking investments in agribusiness, mining, internet infrastructure and digital technologies for healthcare, education and e-commerce.

Considering Indian excellence and experience in technology and technology driven solutions, India is the ideal and coveted technology partner for Peru. 

Anderson also recommended both countries’ industries to diligently explore the multiple existing and emerging opportunities.

More avenues for investing in Peru will emerge as many more good companies are in dire need of export partners in diverse sectors, he said.

Peru is ranked among India’s top five trading partners in the Latin American region in the past decade. Fiinews.com

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