The Hindu Business Line : Mercosur and India

This is with reference to the editorial "A Strategic PTA" (Business Line, January 28). Given the fact that Mercosur is the third largest market in the world, after the US and the EU the Preferential Trade Agreement entered into between India and Mercosur countries assumes significance and guarantees increased economic interaction.

Though at present, India accounts for only 0.83 per cent of total Mercosur imports, it has seen a drastic rise over the last two years. The Mercosur countries are looking for cheaper sources of imports, which the developed countries like US and EU cannot afford.

Much of the import demand of Mercosur countries, especially intermediate industrial goods and pharmaceuticals, can be met from India which can offer these at much cheaper rates compared to the West.

The only impediment which hinders the trade between India and Mercosur countries is the distance factor which should be overcome.

C. Ramesh

Keeramangalam (TN)

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

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