Modi and Milei convene in Argentina in preparation for the upcoming BRICS summit
In a significant move, India and Argentina are looking to expand their existing Preferential Trade Agreement (PTA), with Indian Prime Minister Narendra Modi requesting Argentina’s support during his visit to Argentina in July 2025. The aim is to enhance economic exchange and deepen bilateral cooperation, viewed as a strategic priority for strengthening mutual trade relations.
Argentina, a key member of the Mercosur trade bloc and India’s fifth-largest trading partner in the region, has shown positive engagement in broadening the partnership. The focus is on strategic sectors such as mineral resources, particularly lithium, technology, healthcare, defense, space cooperation, and agriculture. The lithium cooperation is significant due to Argentina’s position in the global lithium market, vital for India’s green energy transition.
The push for expansion reflects India’s broader strategy to deepen ties with Mercosur countries and diversify its trade partnerships beyond traditional partners, aligning with its "Global South" diplomacy objectives. As of 2025, there is no current indication of a full Free Trade Agreement (FTA) between India and Mercosur finalized or signed. The discussion focuses on expanding the existing PTA framework.
The bilateral talks, which included a lunch, culminated in the decision to deepen bilateral relations and commercial ties. The leaders agreed that the journey ahead in their bilateral relations is even more promising. The diplomatic tour, which culminated in the BRICS summit in Brazil, covered sectors including defense, technology, health, and now energy.
Modi and Argentine President Javier Milei discussed cooperation in the energy sector, including gas, petrol, and lithium. The leaders also agreed to diversify and expand bilateral trade, with figures from the Indian external affairs ministry showing a resilient trade relationship. In 2024, India was Argentina’s fifth largest trading partner, with bilateral trade up 33 percent.
This expansion of the India-Mercosur trade agreement is expected to bring potential benefits on both sides in terms of market access and economic integration. The Mercosur regional trade bloc, which includes Argentina, Brazil, Paraguay, Uruguay, and Bolivia, is seeking closer ties with Asian economies, making India an attractive partner for increased trade and cooperation.
- The strategic sectors India and Argentina aim to focus on, within the expanded PTA, include technology, healthcare, defense, space cooperation, and agriculture, as they seek to strengthen mutual trade relations.
- Argentina's position in the global lithium market is crucial for India's green energy transition, making lithium cooperation a significant part of the partnership.
- The discussion between India and Mercosur countries, such as Argentina, is not limited to the current PTA expansion, but also includes potential future prospects like a full Free Trade Agreement (FTA).
- The energy sector, including gas, petrol, and lithium, is a priority for cooperation between India and Argentina, as they explore ways to diversify and expand their bilateral trade, with India being Argentina's fifth largest trading partner in 2024.
