Argentine President Javier Milei wants to replicate India’s reforms

As a monetarist Argentinian President Javier Milei goes about using “chain saw” to fix his bloated economy to the annoyance of many detractors, he has many admirers too. Atleast two of them are US President Donald Trump and billionaire, Elon Musk, who listened to him patientily at Mar-la-go as he went explaining his economic policies, which professedly are inspired by the ambitious economic reforms of 1990’s of former Prime Minister Narasimha Rao and his finance minister, Manmohan Singh. Trump and Musk hope to replicate the polices of President Milei to make the US economy trimmer and more efficient.

Argentina sees a lot of commonality between the two countries and therefore it is exploring how it can enlarge its trade and investment with India.

During a seminar last Friday, December 19, 2024, at the Argentinian Embassy in New Delhi on “Argentina´s Investment Opportunities 2025”, Ambassador Mariano Caucino, who took over the mission  in 2024 said: “it is an immense privilege to serve as Argentina’s Ambassador to India during such a transformative period. The one in which India’s rapid ascent as a global power, particularly within the Indo-Pacific region, demonstrates its pivotal role in shaping the future”.

The Argentine envoy stated that “India´s remarkable achievements—becoming the world’s fifth-largest economy and one of the fastest-growing democracies—are truly impressive”.

Ambassador Caucino stressed that “One thing our country admires about India, and that the current Argentine administration, led by President Javier Milei, seeks to imitate, is the deregulation of the economy, initiated by India in the 90s”.

Caucino stated “we learned that our country experienced many years of failed planning, extreme overregulation, high taxes and excessive government interference on private business and that is why we declined for so many decades”.

The Argentine Ambassador explained that “President Milei was elected with a clear and strong pro-market agenda” and his Administration is focused mainly in the deregulation of the economy, eliminating obstacles to production and investments in one of our main objectives”.

Caucino recalled that recently, the Minister of Deregulation of Argentina, Mr. Federico Sturzennegger, even referred to the Indian example of the 90s “as one of the inspirations for his performance at the helm of his Ministry”.

The envoy insisted that “Milei´s goverment considers that the liberalization of Indian economy, begun under Mr Rao’s administration in the 90s, and subsequently developed by Prime Minister Modi’s leadership during the last decade, explains the outstanding economic success I’ve mentioned before. And that is why we want to replicate this package of measures in our country”.

During the seminar, Caucino emphasized that trade between Argentina and India has reached a level unthought of before. In fact, the trade volume  between the two countries has reached an impressive $4.6 billion, with Argentina becoming a key supplier of soybean and sunflower oil to India.

“These commodities are vital for ensuring food security for Indian consumers. India is Argentina’s fifth or sixth highest export partner and today Argentina is number one provider of Soybean Oil to India”.

Caucino remarked that “regarding Indian investments in Argentina, 2023 marked a significant milestone with Indian mining companies starting operations in northern state of Catamarca. They are not only exploring lithium but also showing interest in copper and gold—resources critical for India’s electric vehicle industry. The presence of companies like the Argentine IT firm Globant in Pune and the UPL Group’s operations in Argentina shows the depth of our economic ties”.

Inviting Indian investors to consider Argentina´s Investments opportunities, Ambassador Caucino reminded that “our current intention is to invite people like you, relevant stakeholders of the business community in India, to invest in Argentina”.

“President Milei’s policies have turned from electoral slogans into concrete legal measures. Our Parliament, with the votes of both the ruling party and the opposition, has approved a “Large Investments Incentive Regime” law, which grants very important benefits to foreign investors, in addition to freezing legal and tax conditions for 40 years. This measure makes it possible to verify the commitment that our country has adopted to favour foreign investment as a means for development”.

The ambassador stated that YPF National Oil Company CEO Horacio Marin will return to Delhi on January 2025 to continue developing the possibilities of energy cooperation between our countries.

Having arrived to New Delhi on 2024, Ambassador Caucino brings a wealth of diplomatic experience, having previously served during as Ambassador to Costa Rica (2016-17) and Israel (2017-19), and as a scholar on International Relations.

Caucino’s enthusiasm for India is palpable, driven by his view of the country as a growing powerhouse on the global stage. With its booming economy, youthful population, and increasing influence in global governance institutions like the G20 (a platform which includes Argentina), India is well-positioned to shape the future. “India is the fastest-growing economy among the large economies in the world,” he highlights, pointing to India’s market dynamism and innovation.

“India’s economic liberalization in the early ‘90s is a blueprint for countries like Argentina,” Caucino notes. “The way India opened up its economy, deregulated industries, and embraced globalization is something we can learn from.”

(Cover Photo: PM in a bilateral meeting with the President of the Argentina, Mr. Javier Milei during G20 Summit at Rio de Janeiro, in Brazil on November 19, 2024. Credit: PIB)