The President of India recently completed a historic visit to the Plurinational State of Bolivia, marking a significant milestone in the diplomatic relations between the two countries. This was the first-ever visit by an Indian president to Bolivia, resulting in multiple agreements and even an honor bestowed upon the President of India.
The Plurinational State of Bolivia
Officially known as the Plurinational State of Bolivia, this landlocked country is nestled in western-central South America. The capital city of Bolivia is Sucre, but the hub of its government and financial activities is located in La Paz. The nation adopted its current official name, “Plurinational State of Bolivia,” in 2009 through a new constitution, acknowledging the multi-ethnic nature of the country.
Key Outcomes of the Presidential Visit
The President of India’s visit to Bolivia saw the signing of 8 Memorandum of Understandings (MoUs) in several fields including culture, visa waiver for diplomats, exchanges between diplomatic academies, mining, space, traditional medicine, the establishment of Centre of Excellence in IT, and the Bi-Oceanic Railway project.
One major highlight was Bolivia joining the International Solar Alliance by signing the framework agreement.
Lithium Deposit Exploration Agreement
India and Bolivia have agreed to collaborate on the exploration and extraction of Bolivia’s vast Lithium deposits. Lithium is a vital resource used in manufacturing batteries – a key element for India’s clean technology initiatives like promoting the use of electric cars. This move could significantly boost India’s FAME II scheme. India has also committed to facilitating Bolivian supplies of lithium Carbonate and to foster joint ventures for Lithium battery/cell production plants within the country.
| Facts about Lithium |
|---|
| Lithium is a light metal used in the production of batteries. |
| Bolivia has one of the largest Lithium deposits in the world. |
| Lithium is crucial for India’s clean technology initiatives. |
Financial Support from India
India provided financial aid worth US$ 100 million to Bolivia under the South-South Cooperation framework. This credit line is for financing development projects in sectors that Bolivia may choose.
Relations between India and Bolivia
The Indian Embassy in Peru has been concurrently accredited to Bolivia since April 1981, while Bolivia opened its resident mission in India in 2012. Over the years, India-Bolivia relations have seen significant growth, culminating in this historic presidential visit.
Trade Relations between India and Bolivia
Recently, there has been a healthy expansion in India-Bolivia bilateral trade, with the figures reaching US$ 875 million in 2018. Interestingly, India imports 60% of Bolivia’s gold, and Bolivia ranks as India’s 8th leading trading partner in the Latin America region. There are abundant opportunities to diversify the trade basket and further bolster bilateral trade.
