After Modi's visit, India will invest in energy, lithium, and technology in the country.

India, an emerging powerhouse with 1.45 billion inhabitants and on track to become the world's third-largest economy before 2030, is moving forward with a concrete strategy to invest in key sectors in Argentina: energy, mining, technology, agribusiness, and nuclear cooperation.

The relaunch of the bilateral relationship received a decisive boost a few days ago, with the visit of Prime Minister Narendra Modi to Buenos Aires, the first by an Indian head of government in more than five decades. In this context, Ambassador Ajaneesh Kumar gave an interview to Infobae, where he detailed the next steps of this strategic partnership that is being strengthened through concrete investments.

LNG plant, energy, and Vaca Muerta

One of the most ambitious projects being considered by New Delhi is the installation of an LNG plant (Liquefied Natural Gas) in Argentina. The idea is part of a memorandum of understanding between YPF and Indian state-owned companies such as OIL, GAIL, and OVL, with the goal of ensuring a reliable energy supply. Kumar explained that, in order to move forward, Argentina must demonstrate sustained production capacity and guarantee long-term availability for the Indian market.

"It's a massive capital investment. But if there is gas available and ready in a few years, India is willing to move forward. There could even be a pipeline if necessary," the ambassador stated.

He also anticipated the possibility of a joint venture between YPF and Oil India to exploit crude oil in Vaca Muerta, a long-term bet that could strengthen Argentina as a strategic energy supplier to one of the world's most dynamic economies.

Lithium, copper, and gold: India's mining ambition

The mining sector is also on the investment radar. Companies such as Kabil and MECL are already exploring five blocks in Catamarca in search of lithium, gold, and copper, minerals essential for the development of batteries and clean technologies. According to Kumar, if the exploration results are positive, investments could multiply rapidly.

"India needs critical minerals for its energy transformation. If the findings are promising, many more companies will come," he assured.

India has also shown interest in Argentine gold, highlighting that it is one of the world's leading importers of this metal.

Nuclear reactors, AI, and payment technology

Another central axis of cooperation is the development of nuclear energy. India plans to generate 100 gigawatts from this source and is considering using small modular reactors (SMR), a technology that Argentina masters. Kumar emphasized that these devices would be ideal for areas with geographical challenges, and that there is already previous collaboration in radioisotopes.

In addition, India proposed that Argentina evaluate the use of its digital payments platform UPI (Unified Payments Interface), which enabled massive banking of the Indian population and reduced the use of cash.

Areas of cooperation are also being explored in artificial intelligence, biotechnology, fintech, drones, and digital communication. According to the ambassador, the goal is to generate business opportunities in innovation with economic and social impact.

A growing trading partner

India is currently Argentina's fifth-largest trading partner, with an annual trade volume of USD 5 billion. In the first five months of 2024, Argentine exports to that country grew by 70.1% year-on-year, especially in vegetable oils and energy. The balance was favorable for Argentina by USD 1.488 billion.

There are already more than USD 1.2 billion in Indian investments in the country, with companies such as TCS, Infosys, Bajaj, TVS, Advanta Seeds, and Godrej operating in different sectors.

Toward a broader agreement with Mercosur

Another step under consideration is the expansion of the preferential tariff agreement with Mercosur. India seeks to reduce barriers for its industrial exports, while opening up to importing more mining, agribusiness, and wine products from Argentina.

"Argentina supported our proposal and there is political will.  Now it remains to move forward with the other members of the bloc," Kumar explained.