GUATEMALA CITY (TIP): India‘s proactive engagement with the untapped Central American market underscores its aspirations to emerge as a leader among global South nations. This outreach has proven highly attractive to numerous Indian companies, catalyzing a significant increase in bilateral trade. Notably, this surge in trade has unlocked vast opportunities not only for large conglomerates but also for small and medium enterprises. As part of this strategic direction, Guatemala and El Salvador recently hosted a successful visit by a delegation of 20 Indian companies from Federation of Indian Export Organizations (FIEO) led by Mr. Khalid Khan. This delegation engaged in a series of productive Business-to-Business meetings with local companies in Guatemala City and San Salvador from February 12 to 16, 2024.

FIEO is an apex body of the Government recognized Export Promotion Councils, Commodity Boards and Export Development Authorities in India.  It was set up in 1965 by Ministry of Commerce, Govt. of India to focus the efforts of all stakeholders engaged in promotion of trade from the country. FIEO exchanges business delegations, establishes MoUs with counterpart organizations overseas, and arranges exhibitions, catalogue shows abroad. It provides the crucial interface between International Trading community of India with the Central and State Governments, Financial Institutions, Ports, Railways, Surface Transport and all engaged in Export Trade Facilitation.  It directly and indirectly serves the interests of over 200,000 exporters from every Industry and Services sector in India.

Guatemala has emerged as India’s largest trading partner in the Central American region, with bilateral trade reaching US$573.21 million in the 2021-22 period. This trend has continued to strengthen, with bilateral trade increasing to US$693 million in the 2022-23 period, indicating a notable upward trajectory. Similarly, India has been steadily expanding its trade presence in El Salvador, with trade reaching US$126 million in the financial year 2022-23. The top products exported from India to the Central American region include pharmaceuticals, textiles (especially cotton yarn and fibers), engineering products, automobiles (two and three-wheelers), motor vehicles/cars, auto components and parts, iron and steel, industrial machinery and parts, and electrical machinery and equipment. On the other hand, India primarily imports wood, wood charcoal, coffee, and aluminum scrap from these regions.

FIEO launched its campaign in Guatemala in collaboration with the Chamber of Commerce of Guatemala, with approximately 90 Guatemalan companies participating in the Business-to-Business meetings. The inaugural ceremony was graced by Ambassador Dr. Manoj Kumar Mohapatra, Mr. Jorge Briz Abularach, President of the Chamber of Commerce, and Mr. Julio Eduardo Orozco, Vice Minister of Foreign Affairs of Guatemala. Mr. Rohit Tejpal, Deputy Director of FIEO, delivered a presentation outlining the organization’s approach and future prospects. The delegation received an overwhelming response from local companies, demonstrating their keen interest in partnering with visiting countries. During the event, FIEO signed a Memorandum of Understanding with the Chamber of Commerce to strengthen collaboration in investment, trade, quality standards, technology transfer, and economic cooperation. Delegation members also had the opportunity to interact with Guatemala’s apex export councils such as PRONACOM, AGEXPORT, Invest Guatemala, and the Chamber of Industry to gain insights into trade regulations and discuss ways to enhance bilateral trade relations.

The journey of the business delegates from FIEO continued as they proceeded to El Salvador to explore the vast potential of this rapidly growing economy. Upon arrival, the delegates were warmly welcomed by the Honorable Minister of Economy of El Salvador, Ms. Maria Luisa Hayem, along with Ambassador Dr. Manoj Kumar Mohapatra and Mr. Salvador Gome Goche, President of Invest in El Salvador. Ambassador Ariel Galindo, former Ambassador of El Salvador in India, played a pivotal role in encouraging local companies to participate in the business meetings. Despite being an unexplored destination for the visiting delegation, the enthusiastic response from local companies bolstered their excitement and prompted them to further explore the local market the following day. The delegates ventured into areas such as Santa Tecla and other prominent locations to gain insights into the local market dynamics and opportunities for collaboration.

The B2B Meetings in these two countries facilitated exploration of potential trade opportunities, allowing businesses from both countries to identify areas of mutual interest and collaboration. The delegation gained insights of Guatemalan and El Salvador markets, helping them understand regulatory environments, consumer behavior, and market trends, which is crucial for successful market entry. These meetings can not only serve as a forum to promote investment opportunities, encouraging businesses to invest in each other’s countries and contribute to economic growth but also provide a platform for networking, enabling companies to connect with potential partners, suppliers, and distributors, thereby expanding their business networks. Embassy of India in Guatemala looks forward to many more such visits in future to enhance the trade relations between Indian and these Central American Countries.