India - Peru

 

Political Relations

 

India established diplomatic relations with Peru in March 1963. The Indian Ambassador in Chile was concurrently accredited to Peru. In September 1969, India opened its resident mission in Lima, Peru. The first resident Indian Ambassador in Lima took charge in November 1973.  India-Peru relations have traditionally been cordial and friendly. Since the 1990s, there has been an increasing economic and business content to the relationship. On the Peruvian side, an enhanced interest in the Asian region due to APEC membership, coupled with India’s image as a technologically advanced democratic developing country, as well as increased bilateral trade in recent years, has enhanced India’s importance. Peru is also a member of NAM and G-77.  India and Peru cooperate closely on multilateral matters.

 

Recent VIP / VVIP visits from India to Peru: President Shri K. R. Narayanan (1998); EAM Shri Yashwant Sinha (2003);  MoS Defence Rao Inderjit Singh (2006);  MoS  External Affairs Dr. Shashi Tharoor (2010);  Minister for Housing, Urban Poverty Alleviation & Tourism Kumari Selja (2010);  MoS (C&I) Shri Jyotiraditya Scindia (2010).  Vice President Shri M. Hamid Ansari (2013); MoS for Railways Shri Adhir Ranjan Choudhury (2014);  MoS for Environment, Forests & Climate Change Shri Prakash Javadekar ( for COP20 –  December 2014); Minister for Small Scale & Minor Industries and Tourism  of Karnataka, Shri R.V. Deshpande visited Peru for a roadshow Invest Karnataka (August 2015),  Minister for Finance, Corporate Affairs & Information & Broadcasting Shri Arun Jaitley (participated in World Bank/IMF Annual Meetings and Meetings of G24 and the Commonwealth FMs – October 2015).

 

Recent VIP / VVIP visits from Peru to India: President Alan Garcia (1987) - Chief Guest for Republic Day; President Alberto Fujimori (1997); Minister for Foreign Affairs and Tourism Mr.  Alfredo Ferrero  (2006);  Vice Minister for Defence Mr. Rafael Aita Campodonico (2009) to attend "Aero India 2009"; Minister for Trade and Tourism Mr. Eduardo Ferreyros (2011); Vice Minister of Environment Mr. Hugo Cabiese (2011); Vice Minister of Foreign Affairs Ambassador Jose Beraun Araníbar (2012); Vice Minister for Foreign Trade Mr.Edgar Vasquez (August 2014).

 

Parliamentary contacts:  In January 2003, two Vice-Speakers from the Peruvian Congress visited India to participate in the celebrations for the 50th anniversary of the Indian Parliament. On 30 April, 2003, the Peruvian Congress reactivated the Peru-India Parliamentary Friendship League.  In the last Congress, a 17-member Peru-India Parliamentary Friendship League was inaugurated on 13th December 2011. In December 2007, the India-Peru Parliamentary Friendship Group was formed in the Indian Parliament. In April 2013, for the first time, an eight-member Peruvian parliamentary delegation led by Ms. Lourdes Alcorta Suero, Congresswoman and the President of the Peru-India Parliamentary Friendship League, paid an official visit to India.   Four Indian Members of Parliament accompanied Vice President Ansari on his official visit to Peru in October 2013. A new Peru-India Parliamentary Friendship League headed by Mr. Roy Ventura Angel has been constituted by the newly elected Congress of Peru

 

Agreements:  Many bilateral agreements have been signed by the two sides over the years, covering a wide range of cooperation areas. Some of the more recent ones include a Defence Cooperation Agreement, Establishment of a Joint Commission, Educational Exchange Programme and an MoU on Cooperation in Geology and Mineral Resources. A number of other agreements such as Bilateral Investment Protection and Promotion Agreement, Customs Cooperation Agreement, Mutual Legal Assistance in Criminal Matters, Air Services Agreement,  Agreement for the Exchange of Information and Assistance in Collection with respect of Taxes, Social Security and Cooperation in  Health, are being negotiated. Both sides have finalized MoU on Cooperation in Renewable Energy  and is ready for signature.  In the light of complementarities of bilateral trade between India and Peru, both sides have agreed on negotiations for a Trade Agreement.  The Joint Study in this regard was concluded during the visit of a delegation from the Commerce Ministry in September 2016. Negotiations are expected to commence soon.

 

Institutional Mechanisms: The 4th India-Peru Foreign Office Consultations were held in New Delhi on 13th July 2012 after a gap of seven years. The first meeting of the newly established Inter-governmental Joint Commission, chaired jointly by the Foreign Ministers of both countries, is expected to be held in April 2017.

 

Assistance to Peru:   The India-Peru Centre for Excellence in Information Technology (IPCEIT) set up in Lima with the assistance of the Government of India  commenced academic courses from March 2015.    India offers to Peru regular training courses under its ITEC programme which is gaining popularity in Peru.   During 2016-17, Peru has been allotted 40 ITEC slots which is being well utlized. Peruvian diplomats have also been attending the PCFD courses at the Foreign Service Institute.  For the first time, Peru sent an officer (Naval) to attend the 53rd NDC Course in New Delhi in 2013. 

 

India gave an amount of US$ 500,000 to the Government of Peru as disaster relief assistance in the wake of a severe earthquake which took place on 15 August 2007. India has extended financial assistance for afforestation of a park in Lima named after Mahatma Gandhi.

 

Commercial Relations

 

Trade between India and Peru is growing, with trade crossing the US $1 billion mark for last four  years. During 2014-15, the total trade was US $ 1.41 billion.

 

 Indo-Peruvian Trade (US $ Million)

 

2013-14

2014-15

Growth

2015-16

Growth

       2016-17

  October 2016

India’s Exports

 620.569 

  819.858 

   -32.11%  

 703.177  

  -14.23%

     356.126

India’s imports

 524.213  

  590.395 

 12.63%

 820.222 

    38.93%  

     391.223

Total Trade

 1144.782 

1410.253 

   23.19%

1523.399 

      8.02%

     747.349

Source:  DGCI & S, Department of Commerce, Government of India

 

However, according to Peru Custom Statistic, trade between India and Peru during the calendar year 2014 (January to December)was US$ 1.108 billion – exports from India to Peru were US $787.956 million and imports by India from Peru were valued at US $320.796 million. During the same period in 2015, according to Peru Custom Statistic, the total trade was US $ 1.559 billion - exports from India to Peru valued at US $883.26 million (a growth of 12.10%) while imports by India from Peru valued at US $676.289 million (a growth of 110.82%). During the first eight months of 2016 (January to August), the total trade is valued at US $ 948.686 million (with Indian exports valued at US $505.608 million; imports by India from Peru at US $443.078 million).

 

India’s main exports to Peru are towers of iron and steel, pipes for oil and gas industry, automobiles, motorcycles and three-wheelers, iron and steel products, polyester and cotton yarns, pharmaceuticals, etc. Main Indian imports from Peru are copper, gold, phosphates of calcium, zinc and lead minerals, fish flour, synthetic cables, fresh grapes etc.

 

Investments: Five Indian companies have currently invested in the mining sector in Peru.  It is estimated that their present investment is to the tune of US $ 30 million.  This will continue to grow every year as the mines reach more advanced stages.  Many more mining companies are in the process of scouting/finalizing the acquisition of mining assets. In addition, IFFCO has a major stake in a large phosphate mining operation in northern Peru. Similarly, Zuari Agro, partnering with Mitsubishi, has a 30% stake in a large rock phosphate reserve in the same area.  Zuari’s investment share in the development of this project will be about US $ 36 million.  Tata Consultancy Services have a sizeable operation in Lima and is increasing its presence in Peru. Tech Mahindra also has a significant presence in Peru after the acquisition of the Israeli company LeadCom.  Indian company Redbus belonging to the Ibibo.com group has acquired majority stake in the Peruvian company Busportal.pe. Reliance has acquired an oil block. All the major Indian pharmaceutical companies have their representative offices or local subsidiaries here.

 

AJE Peru has opened a subsidiary in Maharashtra, AJE India Pvt. Ltd. manufacturing soft beverages. The operations started in December 2010.  They have invested US $ 15 million so far and plan to increase this in the future.    A major Peruvian company, Resemen S.A.C., which specializes in mining machinery, has opened a subsidiary in New Delhi by the name of  Reliant Drilling Ltd.,  following a major contract it has won from Hindustan Zinc  Ltd. Several other mining services companies of Peru have set up operations in India such as Opermin and AAC Mining Executors Ltd. Lubricants major Vistony is setting up a plant near Rewari (Haryana)

 

Cultural Relations

 

A Cultural Agreement was signed in 1987. ICCR sponsored the visit of renowned Odissi dancer Masako Ono to Peru in April 2012. The 50th anniversary of the establishment of diplomatic relations between India and Peru was celebrated on 25 March 2013.  During the ceremony, a special postal stamp depicting Taj Mahal and Machu Picchu was issued.  An Exhibition of Documents and Photographs covering 50 years of establishment of diplomatic relations was also opened on the occasion. On 21 June, a Conference on Scientific and Technological Developments in India was organized by the Commission of Science, Innovation and Technology of the Peruvian Congress as part of events marking the 50th anniversary of establishment of bilateral relations. A Mini Festival of India was inaugurated by Vice President on 26 October 2013.  In the Festival, Nrityarupa dance was presented by Sangeet Natak Akademi and a Film Festival and a Literary Programme were organised by the Directorate of Film Festivals and  the Sahitya Akademi respectively. A 5-member Rabab Instrumental Group sponsored by ICCR participated in Lima in  the 1st Highlands Music Festival in November 2014. A 6-member Kuchipudi Dance Group led by Ms. T. Radha Lakshmi  sponsored by ICCR  gave performances and held  workshop cum lectures in Lima from 13 to 18 October 2015.  In the 2nd Highlands Music Festival held in March 2016, a 3-member Santoor group led by Bipul Kumar Ray participated. The Mission organized six Yoga Camps in Lima to commemorate the First International Day of Yoga on 21 June 2015 in Peru.  The second International Day of Yoga was celebrated on 21 June 2016 in Lima as well as Tacna.

 

Cultural Centre

 

A Cultural Centre has been functional at the Embassy since December 15, 2015.  A number of activities are being organised regularly including classes for dance, music, Rangoli, workshop on Ayurveda, mediation etc. Indian movies and documentaries with Spanish subtitles are being screened regularly at the Centre. Since June 2016, a Yoga Teacher has been deployed by ICCR.  Regular yoga classes are being conducted at the Centre.  Special yoga classes are also being conducted at venues of other organisations.  With the support of Ministry of AYUSH, Ayurvedic and Yoga Workshops by experts have been organised in collaboration with the Peruvian health agency EsSalud and other local organisations at Lima, Trujillo and Arequipa. More events are planned in the coming months.

 

Indian Community

 

The Indian community in Peru is quite small, numbering around 500, mainly engaged in business and trade.   More Indian professionals are coming to Peru with the entry of more Indian companies. In addition, there are some Indian nationals with the Missionaries of Charity and other Christian organizations in Lima, Chimbote and Puno.

 

Useful Resources:

 

Website: www.indembassy.org.pe;
Facebook: India in Peru & Bolivia ; Centro Cultural India ; Becarios del ITEC
Twitter: @eoilima  and  @CCultural_India
You Tube: India in Peru & Bolivia

 

 

 

 

 

December 2016

 

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