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India's great leap forward in Peru

Last updated on: October 29, 2013 14:25 IST
Vice President Hamid Ansari at the ceremonial reception in Lima, Peru

Vice President Hamid Ansari’s visit is billed as a game-changer for India’s relationship with mineral-rich Peru, Latin America’s fastest growing economy. Rediff.com's Nikhil Lakshman reports from Lima.

After years of ignoring Latin America as not worth its while, India took one more decisive step towards acknowledging that region’s importance to its resource-needy future when it set up mechanisms and processes during Vice President Hamid Ansari’s meeting with the Peruvian leadership in Lima on Monday, October 28.

“For years, Latin America didn’t matter to us,” a senior Indian diplomat told Rediff.com on Monday evening. “That has changed now. We have realised distances don’t matter, and we can have relationships anywhere in the world. Latin America and India are natural partners”

Latin American countries like Peru, the diplomat felt, “are looking up to India. But we are somewhat shy of playing that role. I hope we can match their aspirations. The vice-president’s visit is certainly the trigger for a new 21st century relationship.”

His views were echoed by Dinkar Khullar, Secretary, West, at the ministry oif external affairs, who felt that the vice president’s three-day visit to Peru has “set the trend for the coming years after not much engagement in the first decade.”

Peru’s Minister of Foreign Trade Magali Silva Velarde-Alvarez says Peru hopes to be India’s “gateway to South America,” which is why the Peruvians pushed for a Free Trade Agreement with India at all the vice-president’s meetings. Peru already has 25 such FTAs, with countries like China (its biggest trading partner), Japan, South Korea and the United States.

The Indian side, however, played down the possibility of an FTA in the near future, saying it was a concept that needs to be investigated by India’s commerce ministry and could be taken some degree forward when Velarde-Alvarez meets her Indian counterpart, Commerce Minister Anand Sharma, in Bali later this year. Velarde-Alvarez, also her country’s tourism minister, hopes to bat for Indian hotel groups to set up hotels in Peru when she meets Sharma.

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India's great leap forward in Peru

Last updated on: October 29, 2013 14:25 IST
The Vice President with Peru's President Ollanta Humala

Four agreements were signed during the vice president’s visit:

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India's great leap forward in Peru

Last updated on: October 29, 2013 14:25 IST

The vice president’s meetings were highlighted by unusual warmth, right from his encounters with President Humala (who more than once expressed his desire to visit India) to Foreign Minister Eda Rivas Franchini to the President of Peru’s unicameral legislature, Fredy Otarola.

Asked why the Peruvians wanted a better relationship with India, a senior diplomat told Rediff.com, “Most Latin American countries do not like China’s activism. They don’t like to be dependent on one country. They feel India can play a balancing role. They think India is a better partner, accountable, responsive. They are scared of the Chinese aggression, scared of compromising their sovereignty.”

Speaking later to Rediff.com, Joint Secretary Dammu Ravi felt the vice president’s visit was a “milestone.”

“These visits signal the importance India places on relationships with countries like Peru. Our vice president is a scholar and a diplomat. We must leverage his visit for better things to come.”