Prime Minister Modi’s visit to Argentina marks a pivotal moment in strengthening bilateral trade, energy collaboration, and South–South strategic ties.
Image Source: Tomas Cuesta/via Getty Images
Prime Minister Narendra Modi embarked on a five-nation tour of the Global South from 2-9 July 2025. An important part of the trip was his visit to Argentina, representing the first bilateral visit by an Indian prime minister in more than 57 years. Although Modi visited Buenos Aires in 2018 for the G20 Summit, this trip fed into the larger South-South engagement strategy, highlighting a key moment in India’s foreign policy focus.
In continuation with earlier practices, PM Modi’s engagements with the Indian diaspora stood out starkly. Modi’s meeting with Argentine President Javier Milei resulted in several high-level engagements. Modi’s subsequent visit to Brazil for the BRICS summit, a grouping that Argentina has not joined, reflects the deft balancing that India engaged in, yet again.
The trade connection between India and Argentina has expanded considerably over the last decade, although it still notably favours Argentina. In recent times, India has frequently been listed among the top five destinations for Argentine exports. The total value of bilateral trade more than doubled from 2019 to 2022, reaching a peak of USD 6.4 billion in 2022.
India has carved a niche in the Argentine market for Ayurvedic products, while Indian companies have established a growing presence in sectors such as information technology and consulting services, further broadening the scope of bilateral economic engagement.
Argentina’s exports to India are primarily composed of agricultural and resource-based commodities, with soybean and sunflower oil being the major products. Other key exports include leather, cereals, gold, copper, and select categories of agricultural machinery. In contrast, India’s exports to Argentina span a more diversified range, including petroleum products, agrochemicals, textiles, pharmaceuticals, and two-wheelers. Additionally, India has carved a niche in the Argentine market for Ayurvedic products, while Indian companies have established a growing presence in sectors such as information technology and consulting services, further broadening the scope of bilateral economic engagement.
Collaboration between the two nations in Science, Technology, and Innovation (STI) has grown as well, especially in fields like nuclear medicine, satellite technology, digital agriculture, and clean technologies. With robust public research infrastructures and shared development goals, both countries are important players in the South-South cooperation landscape.
In 2024, India and Argentina marked the 75th year of their diplomatic relationship, tethering the latest bilateral visit around a crucial milestone in their evolving partnership. The bilateral meeting highlighted a commitment to deepen bilateral cooperation across strategic sectors, including critical minerals, oil and gas, defence, nuclear energy, agriculture, pharmaceuticals, and science and technology. The emphasis on nuclear energy, agriculture, and hydrocarbons reflects a growing alignment of priorities and long-term complementarities in these domains. Additionally, both leaders discussed the prospect of expanding the India–MERCOSUR Preferential Trade Agreement (PTA), signalling an intent to enhance economic integration and diversify trade flows within the broader South-South cooperation framework.
In 2024, India and Argentina marked the 75th year of their diplomatic relationship, tethering the latest bilateral visit around a crucial milestone in their evolving partnership.
India aims to broaden its energy portfolio, while Argentina is positioning itself as a vital provider of essential raw materials. Situated within the Lithium Triangle, alongside Chile and Bolivia, Argentina possesses considerable lithium reserves, which are crucial for electric vehicle batteries and energy storage systems. In January 2024, KABIL, a state-owned Indian enterprise, entered into a contract with CAMYEN, the mining company of Catamarca, to lease five lithium blocks for exploration and future exploitation, marking India’s inaugural overseas lithium acquisition. Additionally, Indian firms such as Coal India and Greenko are actively involved in lithium exploration projects across Argentine provinces.
In the oil and gas sector, Argentina’s Vaca Muerta shale formation in Patagonia has the largest reserves of shale oil and gas globally and remains pivotal to Argentina's energy policy. In early 2025, the President of YPF, Argentina's state-run oil and gas company, travelled to India to engage with both public and private sector stakeholders. Discussions encompassed potential collaboration on LNG development and agreements connected to lithium. These initiatives build upon a previous agreement from 2023 between YPF and ONGC Videsh Limited (OVL) to foster cooperation in oil and gas exploration.
Nuclear energy is another aspect of bilateral collaboration. In November 2024, India’s Heavy Water Board formalised a four-year supply agreement with Argentina’s Nucleoeléctrica Argentina S.A. (NASA), which supports the operation of Argentina’s nuclear power facilities. These recent actions demonstrate a strengthening partnership between India and Argentina in areas crucial for both nations' energy transitions and economic objectives.
Defence cooperation has emerged as another catalyst in the partnership. In a historic development, Argentine Defence Minister Jorge Taiana undertook the first-ever bilateral visit to India in July 2023. During his visit, he held discussions with Indian Defence Minister Rajnath Singh, focusing on avenues to deepen defence cooperation, particularly through enhanced defence industrial collaboration. Earlier, in February 2023, the two countries signed a commercial agreement between Hindustan Aeronautics Limited (HAL) and the Argentine Air Force, providing for the supply of helicopter spare parts and engine maintenance services. These developments reflect growing strategic trust and the potential for expanded defence engagement.
Both leaders discussed the prospect of expanding the India–MERCOSUR Preferential Trade Agreement (PTA), signalling an intent to enhance economic integration and diversify trade flows within the broader South-South cooperation framework.
Healthcare is rapidly evolving as a key area of cooperation between India and Argentina. The recent high-level meeting between the two heads of state highlighted the increasing importance of this sector in the bilateral agenda. Prime Minister Narendra Modi proposed reclassifying India from Annex II to Annex I under Argentina’s pharmaceutical regulatory framework, streamlining the entry of Indian pharmaceutical products into the Argentine market. In response, Argentina briefed India on its expedited import approval mechanisms, particularly for drugs approved by the US Food and Drug Administration (FDA) or the European Medicines Agency (EMA).
India–Argentina relations have witnessed a marked upward trajectory in recent years, underpinned by growing strategic convergence across multiple sectors. The two countries are increasingly aligning their efforts to enhance trade ties and streamline regulatory and bureaucratic processes in key areas such as defence, healthcare, and energy. The developments of the past few years, underscored by the visit, reflect a strong sentiment to foster a long-term, sustainable partnership in both countries. High-level political engagement has further catalysed this momentum, laying the groundwork for the institutionalisation of bilateral mechanisms and insulating the relationship from potential disruptions or policy discontinuities.
Manuel Gonzalo is a researcher, professor, and consultant specialising in comparative economic development, industrial organisation, and STI policies in the Global South.
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Manuel Gonzalo is a researcher, professor, and consultant/advisor specialising in comparative economic development in the Global South, industrial organisation, and productive and science, technology and ...
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