Over a decade India’s FDI into Colombia has been around $ 1 billion in manufacturing and services of added value. India is an important trade and investment partner for Colombia. Despite COVID-19, in 2020-21, the total trade balance was $1.731 million.
Colombia exported $795 million to India in products like oil and coking coal, wood, metal scrap, aluminum scrap, vinyl chloride polymers and gold during FY 21, while India exported to Colombia $ 936 million in products like organic chemicals, pharmaceuticals, cotton, motorcycles in CKD form, machines, plastic materials, aluminum.
The business environment between both countries boasts of 13 bilateral agreements in many fields including Double Taxation Avoidance Agreement.
More than 30 Indian companies have settled down in Colombia, driven by the benefits offered by the country as an investment platform. Colombia also enjoys a privileged geographical position, located in the northern part of South America, with access to the Pacific and Atlantic oceans. It is a gateway to the southern part of the continent, and is commercially and culturally an influencer to the countries of Central American and the Caribbean, and is part of the Pacific Alliance trade bloc.
Colombia offers investors advantages as an exporting platform too, for example to the United States thanks to a Free Trade Agreement (FTA), among other several FTAs that the country has.
Sectors like food processing, ready-to-eat food, the services sector, airport services, security, water treatment, renewable energy, urban infrastructure, and services (waste treatment), cosmetics, and luxury goods, could be of interest to the Colombian companies. The Colombian government looks forward to partnership with Indian companies in fruit, vegetables, grain, pulses, and juices. Colombia can also become a hub for Indian products and manufacturing, and localizing supply chains to cover both the Americas.