India-Costa Rica Bilateral Relationship: Trade and Investment Insights
Overview of the India-Costa Rica Bilateral Relationship
The bilateral relationship between Costa Rica and India is undergoing a significant transformation, with a steady growth in trade and investment across multiple sectors. As global economies look towards diversification, Costa Rica has emerged as a strategic partner for India in Central America, offering opportunities in sectors ranging from medical devices and biotechnology to renewable energy and tourism.
Bilateral Trade Overview
- Bilateral trade reached USD 301 million in 2023-2024.
- India excels in exporting motor vehicles, agrochemicals, pharmaceuticals, iron and steel, and medical devices.
- Costa Rica exports wood products, surgical and medical instruments, computer hardware, and iron and steel.
According to Sofia Salas M., Charge d' Affairs at the Embassy of Costa Rica in India, there is immense potential for further expansion in textiles, agriculture, renewable energies, biotechnology, and information technology.
Joint Economic and Trade Committee (JETCO)
- Established in 2021 to foster economic cooperation.
- Identifying growth avenues and addressing non-tariff barriers.
- Key sectors for joint ventures include pharmaceuticals, medical devices, e-vehicles, and tourism.
The collaborative initiatives hint at a positive trajectory towards a formal trade agreement, stating, "Our goal is to build a gateway for Indian businesses to Latin America through Costa Rica."
Collaboration in Key Sectors
One of the most promising sectors for collaboration is medical devices, where Costa Rica is a global leader, exporting over USD 7.4 billion in 2023. Costa Rica ranks as the ninth-largest exporter of medical devices, attracting firms like Abbott, Medtronic, and Boston Scientific.
Integration between India's robust pharmaceutical sector and Costa Rica's strength in medical devices presents an opportunity for partnerships in R&D, manufacturing, and joint equipment production.
Climate Change and Renewable Energy Cooperation
India and Costa Rica are committed to combating climate change and promoting renewable energy solutions. Costa Rica aims for net-zero emissions by 2050, aligning with India’s environmental targets.
Joint initiatives in sustainability will enhance both nations' ability to meet their renewable energy capacity goals.
Technological and Economic Collaboration
Costa Rica's advancements in technology and innovation present opportunities for Indian firms. Collaboration in IT, cybersecurity, and sustainable initiatives can set an example for the Global South.
Tourism and Cultural Exchange
Eco-tourism and the growing film industry in Costa Rica offer fertile ground for partnerships, with rising Indian tourism highlighting the potential for cross-cultural exchanges.
Gateway to Latin America
Costa Rica’s stable environment, strategic location, and free trade agreements create an ideal setting for Indian enterprises aiming to penetrate Latin American markets.
Sofia Salas M. concludes, "Our relationship is built on shared values, and the future of India-Costa Rica relations is promising."
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.