PM Modi Visit Argentina / Modi did not come to Argentina for no reason eyes on business worth 44 thousand crores

PM Modi Visit Argentina: Prime Minister Narendra Modi arrived in Buenos Aires, the capital of Argentina, on 4-5 July 2025 in the third leg of his five-nation tour. This visit is a historic step towards strengthening diplomatic relations between India and Argentina. This is the first bilateral visit of an Indian Prime Minister to Argentina since the visit of then Prime Minister Indira Gandhi in 1968. The visit comes at a time when both the countries are moving rapidly towards deepening cooperation in energy, critical minerals, defense, trade and counter-terrorism. The visit underlines the growing importance of South America in India's global diplomacy ahead of the BRICS summit to be held in Brazil.

Strategic Minerals and Energy Cooperation

Argentina's vast reserves of lithium, copper and shale gas are strategically important to India. Lithium, which is important in battery manufacturing for electric vehicles and grid storage, is the backbone of India's clean energy ambitions. Argentina, together with Bolivia and Chile, is part of the 'Lithium Triangle', one of the world's largest lithium reserves. Indian company KABIL (Khanij Bidesh India Limited) has acquired rights to mine lithium in Argentina's Catamarca province, and further investment announcements in this sector are likely during the visit.

In addition, Argentina's vast shale gas reserves, the second largest in the world, and its growing LNG (liquefied natural gas) export potential are attractive to India. Amid the instability of traditional energy suppliers to the Gulf region, India is pursuing a strategy to diversify energy sources. Argentina can play a key role in this equation, and Buenos Aires has shown interest in attracting Indian investments to its upstream energy sector.

Trade: The way forward beyond edible oils

Bilateral trade between India and Argentina is set to cross US$5.2 billion in 2024, with India now among Argentina's top six trading partners. Historically, this trade has been focused on edible oils, especially soybean oil. However, now both countries are taking steps towards diversifying trade beyond agri-commodities. Argentina is interested in increasing imports of Indian pharmaceuticals, medical equipment and IT services, while India is pushing for increased access to Argentina's fruit, vegetable, dairy and grain markets.

Trade between the two countries peaked at $6.4 billion in 2022, but a drought in Argentina in 2023 caused trade to drop by 39% to $3.9 billion. Trade picked up again in 2024 with better weather and economic stability, and rose by 53.9% to $2.05 billion in the early months of 2025. Both countries plan to take concrete steps to reduce trade imbalances and improve two-way market access. Argentine President Javier Mailey, who comes to power in December 2023, has expressed a desire to promote economic partnerships beyond the West, providing an opportunity for India to regenerate Mercosur trade talks.

Defence, Space and Tech Cooperation

Defence cooperation is an important part of this journey. Argentina has shown interest in defence systems including the India-made Tejas light combat aircraft. Joint training, co-production and technology transfer are likely to be discussed. In addition, possibilities of cooperation in areas such as digital public infrastructure and telemedicine are being explored. Argentina is keen to learn from India's digital governance and affordable healthcare model.

Space cooperation is also a major point of discussion. The Indian Space Research Organisation (ISRO) and Argentina's CONAE space agency have collaborated before, and the visit is seen as an opportunity to formalise future shared missions. Partnerships in satellite technology and space research could be beneficial for both countries.

Overview of bilateral trade

According to data from the Ministry of External Affairs, bilateral trade between India and Argentina more than doubled from 2019 to 2022, peaking at $6.4 billion in 2022. India remained Argentina's fourth largest trading partner during this period. Trade declined due to drought in 2023, but it rose again to $5.2 billion in 2024. Trade registered a growth of 53.9% in the early months of 2025.

Exports from India to Argentina include petroleum oil, agrochemicals, yarn-fabric, organic chemicals, bulk drugs and two-wheelers. At the same time, vegetable oil (soyabean and sunflower), finished leather, cereals, chemicals and pulses are imported to India from Argentina. Indian companies such as TCS, Infosys, Bajaj, TVS and Glenmark have invested more than $1.2 billion in Argentina, while Argentine companies such as Globant and Techint have invested $120 million in India.

Earlier today, PM @narendramodi arrived in Buenos Aires, Argentina, where he will meet President @JMilei.

Upon his arrival, the Indian community extended a warm and enthusiastic welcome to the PM. pic.twitter.com/1A9qd80mzy

— PMO India (@PMOIndia) July 5, 2025