Lion on the Pampas: India and Argentina forge a strategic bond

In Buenos Aires, a hand-etched silver lion on a fuchsite stone gifted by Prime Minister Narendra Modi to President Javier Milei symbolises the rare and resolute convergence of two distant powers.

Set against the vibrant backdrop of the Argentine capital, PM Modi and President Milei held substantive discussions to deepen ties across trade, defence, energy, and technology. Bilateral trade, which reached $5.23 billion in 2024, reflects a robust upward trajectory, more than doubling from 2019 and peaking at $6.4 billion in 2022.

India, now Argentina’s fifth-largest trading partner, enjoys a trade surplus, exporting $3.8 billion in goods—primarily pharmaceuticals, chemicals, and machinery—while importing $1.43 billion, largely agricultural products like soybean oil. This imbalance is seen not as a concern but as an impetus for diversification. Both nations agreed to explore a joint working group on agriculture and to expand the India-Mercosur Preferential Trade Agreement, aiming to balance market access for Indian fruits, vegetables, and dairy with Argentine farm exports.

At the core of this growing partnership lies a shared interest in critical minerals, particularly lithium. Argentina’s vast reserves in the Lithium Triangle—alongside Bolivia and Chile—align with India’s pressing demand for clean energy inputs. Lithium, essential for EV batteries and renewable energy storage, is vital to India’s green transition. Indian firms like Khanij Bidesh India Ltd (KABIL) secured concessions in Argentina’s Catamarca province in 2024, with a landmark agreement signed in January for the exploration of five lithium blocks.

Pharma is another pillar of cooperation, showcasing India’s soft power and economic strength. Indian generic drugs, known for affordability and quality, are increasingly sought in Argentina. PM Modi urged Argentina to reclassify India from Annexe II to Annexe I in its pharma regulatory framework—a step that would speed up approvals for Indian medicines.

Defence collaboration, still in its early stages, is gaining traction. India’s “Make in India” initiative to bolster domestic defence manufacturing found a receptive audience in Argentina. The Indian delegation pitched the Tejas light combat aircraft as a potential fit for Argentina’s air force, which seeks replacements for its retired Mirage jets. In 2023, agreements were signed between Hindustan Aeronautics Limited (HAL) and the Argentine Air Force for helicopter spares and maintenance.

The strategic undertones of PM Modi’s visit extend beyond bilateral benefits. Argentina’s economic reforms under President Milei, reminiscent of India’s own liberalisation in the 1990s, create fertile ground for collaboration. Talks also touched on digital innovation, with PM Modi showcasing India’s UPI as a model for financial inclusion—an idea gaining traction in Argentina.

This visit, a milestone in a 75-year relationship, positions India and Argentina as natural partners in a shifting global order. Like the silver lion etched on fuchsite, their partnership—forged in mutual ambition and tempered by pragmatism—gleams with promise, ready to roar across the Pampas.

The writer is a senior journalist with expertise in defence. Views expressed are personal and do not necessarily reflect those of Firstpost.