Thoothukudi poised for $10bn Latin American investment amid rising Indo-LAC trade ambitions

From left to right: Rajkumar Sharma, National and Founder President ILACC;  Alberto Antonio Guani Amarilla, Ambassador of Uruguay and Shakthivel, President of the South India Chapter ILACC

CHENNAI:
Thoothukudi, a major port city in Tamil Nadu, is poised to attract a potential $10 billion investment from a Latin American country in the defence and security sector, amid growing trade ties between India and the Latin American and Caribbean (LAC) region.

The investment is under negotiation and may be formalised through a memorandum of understanding by the end of the year, according to Rajkumar Sharma, President of the Indo Latin American Chamber of Commerce (ILACC). He declined to name the investing country or confirm whether the project is linked to the upcoming Kulasekharapatnam spaceport being developed near Thoothukudi.

“This is for national safety and security. I am not authorised to disclose further details,” Sharma said on the sidelines of the launch of ILACC’s South India Chapter in Chennai.

He noted that bilateral trade between India and Latin America has grown from $2 billion in 2000 to $18 billion today. Lithium and rare earth imports through South Indian ports are emerging as a priority, aligned with India’s energy security goals.

The announcement coincides with a broader strategic push to position South India as a hub for LAC investments in sectors such as defence, infrastructure, logistics, ports, and renewable energy. Sharma said southern states have already attracted more than $40 million in investments from the region, with Tamil Nadu receiving the largest share.

The initiative was launched during Horizon 2025, a business conclave hosted by ILACC to mark the inauguration of its South India chapter. The event brought together diplomats, trade envoys, and business leaders from countries including Peru, Cuba, Chile, Venezuela, Argentina, and El Salvador.

Alberto Antonio Guani Amarilla, Ambassador of Uruguay and Coordinator of the LAC Group (GruLAC), described the conclave as a significant step toward deeper economic and cultural ties between India and Latin America. “The South India chapter could serve as a critical node in our bilateral engagement,” he said.

Sharma said ILACC, recognised by India’s Ministries of External Affairs and Commerce, operates on a four-pillar agenda: trade, investment, policy, and advocacy. “Horizon 2025 is more than a platform—it’s a vision of a shared future,” he said.