The Latin American country Uruguay has caught the fancy of Indian companies such as Tata Consultancy Services (TCS) and Geodesic, though “opportunities are still largely unexplored and under-utilised” there, points out a Uruguay-India report on trade and investment links released by Surana and Surana International Attorneys (SSIA).
The report suggests that the liberal approach of Uruguayan authorities towards foreign investment and vast untapped resources could offer lucrative opportunities for Indian businesses. Uruguay permits foreign investment of up to 100 per cent equity in most sectors except a few that are restricted for national security purposes, such as defence, says the report. It further highlights that “the Uruguayan economy managed to weather the (economic) crisis without major costs in terms of activity…it is expected that the economy will grow at levels close to 3.5 per cent in 2010.”
“Uruguay's current account balance has been negative, reflecting that investment is greater than domestic savings. Hence, the country is being financed by external savings, an indication of foreign confidence in Uruguay.”
The sectors that could interest Indian companies include information and communications technology, infrastructure, tourism, agribusiness, renewable energy, health and life sciences, free trade zones, free ports and technology parks/tax free zones, said the report.
Bilateral trade
Bilateral trade between the two countries has increased considerably in recent years, in particular India's sales to Uruguay.
Uruguay's imports from India have grown from $7 million in 2003 to $36.5 million between December 2008 and November 2009. However, its exports to India remained almost same with $10 million in 2003 and $9.7 million registered between December 2008 and November 2009, said the report.
Among Indian companies, TCS in 2002 made Uruguay the global development platform for its clients in Spain and the Spanish-speaking countries of Latin America. Geodesic, an innovative software products company, acquired Interactiveni, a Uruguayan software company in May 2009.
Other key investments in the region include Arcelor-Mittal group's acquisition in December 2007 of a Uruguayan producer of stainless steel tubing (CINTER S.A.) company whose sales were $47 million and employed around 200 people.
SSIA, headquartered in Chennai, recently formed an alliance with FERRER International, the largest law firm in Uruguay. “The partnership enables the two law firms undertake joint projects across the globe,” said Mr P. S. Surana, Founder, SSIA.
The report is SSIA's latest initiative to promote Indo-South American relations.
