Published On : 31-Jan-2022
Ancient mountainsides in the Andes and valleys full of biodiversity snake through the legendary land of Argentina, complete with picturesque beaches, cathedrals and extremely arable farmland. Argentina is bordered by Brazil, Paraguay and Bolivia to the north, Chile to the east and Uruguay to the west. Argentina has been called the liberator of South America as it was the first nation in the region to drive colonisers out from its frontiers in 1816. The nation has been a shining light for the Americas and was even the most dominant economy at one point in time.
Argentina still acts as a regional hub of manufacturing and industrial processes besides being an efficient service provider. It is also a centre of mineral resources, cattle farming and cereal production. A highly literate population and great levels of human advancement make Argentina a developing economy. Its GDP is about $450 Billion as of 2021.
Recent Argentinian monetary health has been dampened severely by high inflation, devaluation of the peso, record levels of foreign debt and the COVID19 pandemic. Overseas capital disinvestment has further hurt the economy as poverty levels hover around 40%. The crisis has caused immense detriment to everyday Argentinians who have to rely on scraps and government doles to get by. The situation is extremely distressing.
India and Argentina have shared bilateral ties since before Indian independence in 1947. Indo-Argentine trade was recorded at about $3.2 Billion in 2020. Out of this, Indian exports were $739 Million while Argentine exports were $2.5 Billion, giving the latter a trade surplus. India imports a considerable quantity of animal and related products, vegetable oils and fats. Leather and cereals are also top imports. The countries are both a part of the G20 alliance. Indian multinational companies such as TCS, Wipro, Godrej, Cognizant and CRISIL have business operations in Argentina.
The nation of Argentina exports immense quantities of animal and related products, being the second-largest producer in the region after Brazil. As of 2020, the nation’s exports were recorded at $54 Billion. Argentina has an immense mineral and natural resource base. The top export commodities are residues & animal fodder, cereals, vehicles, animal products, oilseed and meat. The leading Argentine export partners are Brazil, China, the United States, Chile, Vietnam and India.
Argentine imports in 2020 were $42.35 Billion. China and Brazil share the tag for the top import partner. China has significant investments in Argentina most notably in the renewable energy sector. Other leading import partners are the United States, Paraguay, Germany, Italy and Bolivia. The most imported commodities are machinery, electrical equipment, vehicles, mineral fuels, organic chemicals and plastics.
Argentina has, in its past, battled colonisers, plagues, the great depression, tyrannic rulers who grossly mismanaged the economy. Currently, the burden of a massive foreign debt looms large over Argentina. The people, as a result, are suffering. One in ten people in the nation lives in acute poverty. The current government has deftly managed the crisis by keeping the IMF confident of its prospects while maintaining subsidies and other allowances to the poor. Things are looking to take a turn for the better. The government’s hike in export taxes has provided the nation with much needed foreign currency that has, in turn, assisted the economic growth of 7%. If this growth rate can be maintained, we can all look forward to an Argentina that is equal, progressive and economically stable.
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