PM Modi, Argentine President Milei Agree to Diversify Bilateral Trade Basket

India and Argentina on Saturday agreed to diversify two-way trade and ramp up cooperation in defence, critical minerals, pharmaceutical, energy and mining sectors with Prime Minister Narendra Modi emphasising on taking the ties between the two natural partners to "greater heights".

Prime Minister Modi held wide-ranging talks with Argentine President Javier Milei, a day after landing at the South American nation in the third leg of his five-nation tour.

Though Modi visited Argentina in 2018 to attend the G20 Summit, it is the first bilateral visit to the country by an Indian prime minister after a gap of 57 years.

In the meeting, the prime minister thanked President Milei for extending strong support to India following the Pahalgam terror attack and appreciated Argentina's solidarity during this difficult period.

"We are marking 75 years of India-Argentina diplomatic relations and 5 years since we elevated our relationship to a Strategic Partnership. We have covered significant ground in our bilateral relations, but we agree that the journey ahead is even more promising," Modi posted on X after the talks.

The prime minister said that there is immense scope to enhance India-Argentina cooperation in areas like pharmaceuticals and sports as well.

During his conversation with the Argentine president, Prime Minister Modi said India and Argentina are natural partners and both sides should use this to take the cooperation to "greater heights", Secretary (East) in the Ministry of External Affairs Periasamy Kumaran said at a media briefing.

The resolve by the two sides to expand cooperation in the critical minerals sector assumes significance as India has been looking at steady supply of rare earth minerals to minimise dependence on China.

Argentina's rich reserves of critical minerals, including lithium, copper and rare earth elements, align with India's need for secure and sustainable resources to drive its clean energy transition and industrial growth, Kumaran said.

Modi and Milei also deliberated on boosting bilateral cooperation in the energy sector.

"The prime minister underlined India's growing energy and industrial needs and emphasised that Argentina could serve as a reliable partner in supporting India's developmental journey," Kumaran said.

With the world's second-largest shale gas and fourth-largest shale oil reserves, along with substantial conventional oil and gas deposits, Argentina holds strong potential to become an important energy partner for India, he said.

Kumaran said the two leaders focused on expanding cooperation in areas of defence and security, infrastructure, mining and mineral resources, agriculture, green energy, communication technologies, digital innovation, education and people to people linkages.

Modi and Milei also emphasised the need to enhance market access for each other's agricultural and dairy products.

To take this forward, they directed their teams to convene a joint working group on agriculture at the earliest, Kumaran said.

"Both leaders also expressed interest in enhancing collaboration in the defence sector, where they felt that they can leverage their respective experiences and capabilities to increase cooperation and contribute to mutual strategic interests," he said.

The Indian side also offered support for maintenance of Argentina's military helicopter fleet.

It also offered Argentina a number of military platforms, Kumaran said without elaborating.

Prime Minister Modi sought Argentina's support in expanding the India-MERCOSUR trade agreement, noting that it could deepen trade ties between the two nations as well, he said.

The preferential trade agreement (PTA) is aimed at expanding economic ties between India and the MERCOSUR bloc that includes Argentina, Brazil, Paraguay, and Uruguay.

Kumaran said Prime Minister Modi pitched for deeper cooperation between India and Argentina in the pharmaceutical sector, particularly its capacity to produce high-quality, affordable medicines.

"He discussed the possibility of India being moved from Annexe II to Annexe I of Argentina's pharmaceutical regulatory framework, which would facilitate smoother entry of Indian pharmaceutical products into the Argentine market," the senior diplomat said.

The Argentine side updated the Indian delegation on the fast-track approval process available for import of Indian medicines.

In the meeting with the Argentine leader, Modi also showcased the success of India's Unified Payment Systems (UPI).

Kumaran said the Argentine president was keen to understand how the UPI system works and how it helps the Central bank control monetary policy in a more effective way.

"It is expected that the visit will further strengthen the strategic partnership between India and Argentina and allow us to explore new avenues of cooperation across a wide range of sectors," Kumaran said.

The two leaders also touched upon possible cooperation between the two countries in the use of drones.

President Milei hosted a lunch for Prime Minister Modi following the talks.

Prime Minister Modi also received the Key of the City of Buenos Aires from the Chief of the City Government of Buenos Aires, Jorge Macri.

The India-Argentina relationship was elevated to strategic partnership during the visit to India of the then Argentine President Mauricio Macri in February 2019.

The two sides have been cooperating in several key areas such as trade, defence, critical minerals, oil and gas, nuclear energy, agriculture, culture and technology.

India and Argentina have significant cooperation in the mineral resources sector, particularly in lithium -- a critical input for India's green energy transition.

An MoU on cooperation in the field of mineral resources was signed in August 2022. The first meeting of the joint working group set up under the framework of the MoU was held in January.

The India-Argentina bilateral trade has been on an upswing. The trade volume more than doubled in three years from 2019 to 2022, peaking at USD 6.4 billion in 2022.

In 2021 and 2022, India was Argentina's fourth largest trading partner.

In 2024, total annual bilateral trade between India and Argentina was USD 5.23 billion, positioning India as Argentina's fifth-largest trading partner and export destination.