During the last few decades, India’s trade with the Latin American and Caribbean (LAC) countries has grown substantially, especially in the area of Information Technology (IT) services. The definition of IT services now includes a plethora of IT-enabled services (ITeS) directed to specific sectors, including Agri-tech, Fin-tech, Health-tech, manufacturing and mining-based services, as well as e-commerce. This sector has attracted significant Indian investment in the region. Over the last decade, the share of the IT sector in total Indian Foreign Direct Investment (FDI) in the region has nearly doubled to about 15 percent today.
The COVID-19 pandemic has posed a myriad of challenges and new prospects for ITeS. The industry is confronting this health crisis through opportunities to promote skill-up, embrace the digital transformation and stimulate overall growth of the industry in both regions. The increased reliance on e-commerce has paved the way for greater development of IT-enabled financial products delivered via mobile applications. Moreover, to remain competitive in the global market, companies have increased their demand for new technologies.
In this context, this report examines new challenges and prospects for ITeS and e-commerce in the pandemic economy in India and LAC, and explores new opportunities for bilateral direct investment and trade between the two regions.