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India El Salvador Relations: Trade, Diaspora, Economic, Strategic Importance for UPSC

India and El Salvador work closely across various domains to further enhance their strategic partnership. El Salvador, positioned in the Central America / Americas, is crucial to maintaining international stability and security. In 1979, India and El Salvador initiated diplomatic relations, marking the beginning of a cooperative journey. India and El Salvador preserve a Concurrent accreditation from Guatemala, El Salvador Embassy in New Delhi, ensuring robust bilateral interaction through embassies in each others capitals. India and El Salvador share a Support in multilateral forums, potential trade hub that typically involves defense collaboration, economic alliances, cultural exchanges, and joint efforts on global security matters. 

  • India and El Salvador work together in Trade, capacity building, technical assistance, culture such as defense, nuclear energy, trade, space exploration, oil and gas, cybersecurity, culture, and education. 
  • India and El Salvador have forged important partnerships through agreements in Visa Exemption (2010), Cultural Cooperation (2010) to foster greater cooperation. 
  • India and El Salvador recorded a trade value of USD 10584 million (2022-23), marking a significant boost in bilateral trade. 
  • India’s export ties with El Salvador are driven by goods like Pharmaceuticals, vehicles, textiles, chemicals, engineering goods, which support long-term trade relations. 
  • Among its major imports from El Salvador, India includes Wood, iron and steel scrap, paper products, reflecting robust trade relations. 

Strong ties in ITEC scholarships, training in IT and other fields help India and El Salvador boost academic links and technological development together. This write-up on India El Salvador Relations comprehensively covers Strategic Engagements, Indian Diaspora Contributions, and Diaspora Remittances, relevant for both GS Mains and PSIR Optional preparation. 

India El Salvador Relations Overview for UPSC

Country Name

El Salvador

Region / Continent

Central America / Americas

Year of Establishment of Ties

1979

Level of Diplomatic Mission

Concurrent accreditation from Guatemala, El Salvador Embassy in New Delhi

Strategic Importance

Support in multilateral forums, potential trade hub

Major Areas of Cooperation

Trade, capacity building, technical assistance, culture

Key Bilateral Agreements

Visa Exemption (2010), Cultural Cooperation (2010)

Bilateral Trade Volume (Latest FY)

USD 10584 million (2022-23)

Top Indian Exports to Partner

Pharmaceuticals, vehicles, textiles, chemicals, engineering goods

Top Indian Imports from Partner

Wood, iron and steel scrap, paper products

Technology & Education

ITEC scholarships, training in IT and other fields

Indian Diaspora

Estimated less than 100 people

 

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India El Salvador Relations Establishment of Diplomatic Ties

The roots of India–El Salvador relations go back to Diplomatic relations established, development cooperation focus. Vice President Venkaiah Naidu (2018), Salvadoran Foreign Ministers reflect the deepening of India–El Salvador relations through top-level diplomatic engagements. 

  • India–El Salvador relations can be traced through key stages, including Gradual development, increased focus through India-SICA dialogue.

India El Salvador Relations - Establishment of Diplomatic Ties

Initial Engagements

Diplomatic relations established, development cooperation focus

High-Level Visits (Historic)

Vice President Venkaiah Naidu (2018), Salvadoran Foreign Ministers

Past Conflicts or Tensions

N/A

Phases of Engagement

Gradual development, increased focus through India-SICA dialogue

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Strategic & Political Cooperation of India El Salvador Relations

The Support in multilateral forums, potential trade hub of India and El Salvador relations often encompasses defense cooperation, economic partnerships, cultural exchanges, and common global security goals. 

  • India supports Cooperation within international frameworks with El Salvador by collaborating to prevent terrorism and improve regional security. 
  • India’s strategic Capacity building in IT partnership with El Salvador advances innovation, digital infrastructure, and security coordination. 
  • Security cooperation between India and El Salvador has grown through UN, NAM, G77, SICA (El Salvador), helping resolve global issues and drive progress. 
  • The growing Potential for renewable energy collaboration (geothermal, solar) between India and El Salvador includes collaboration on clean energy, solar power, and energy security. 
  • India and El Salvador are enhancing economic cooperation through No DTAA in force designed to avoid double taxation and support trade.

Strategic & Political Cooperation of India El Salvador Relations

Strategic Importance

Support in multilateral forums, potential trade hub

Defense Cooperation

N/A

Counter-terrorism / Intelligence

Cooperation within international frameworks

Cyber-security & Tech Sharing

Capacity building in IT

Multilateral Groupings

UN, NAM, G77, SICA (El Salvador)

Energy Cooperation

Potential for renewable energy collaboration (geothermal, solar)

Space Cooperation

N/A

Tourism & Air-Services Agreements

N/A

Taxation Agreements

No DTAA in force

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Trade and Economic Overview of India El Salvador Relations

  • India and El Salvador have expanded their cooperative framework by signing agreements in areas such as Visa Exemption (2010), Cultural Cooperation (2010). 
  • The bilateral trade between India and El Salvador stands at USD 10584 million (2022-23), reflecting increasing economic interdependence. 
  • Investment flows include Limited, potential for Indian investment, along with key joint ventures and shared initiatives between India and its economic partner. 
  • Regular meetings like Foreign Office Consultations, India-SICA framework, usually taking place annually or every two years, aim to promote and assess the trade and investment relationship between India and its partner country. 
  • As part of their strategic economic cooperation, India and El Salvador have extended several Small grants for community projects, disaster relief to boost growth and financial synergy. 
  • The value of goods exported to India by El Salvador totaled Approx USD 231 million (2022-23). 
  • Among India’s main exports to El Salvador are Pharmaceuticals, vehicles, textiles, chemicals, engineering goods, reflecting strong and balanced trade between the two countries. 

The total value of goods imported by El Salvador from India stood at Approx USD 12698 million (2022-23). With operations in El Salvador, Indian companies such as Some pharmaceutical distribution, IT services presence are fostering bilateral business ties.

Trade and Economic Overview of India El Salvador Relations

Bilateral Trade Volume (Latest FY)

USD 10584 million (2022-23)

Top Indian Exports to Partner

Pharmaceuticals, vehicles, textiles, chemicals, engineering goods

Top Indian Imports from Partner

Wood, iron and steel scrap, paper products

Key Bilateral Agreements

Visa Exemption (2010), Cultural Cooperation (2010)

Investment Flows (FDI both ways)

Limited, potential for Indian investment

Joint Economic Commissions / Dialogues

Foreign Office Consultations, India-SICA framework

Lines of Credit

Small grants for community projects, disaster relief

Export to India (In $)

Approx USD 231 million (2022-23)

Import from India (In $)

Approx USD 12698 million (2022-23)

Indian Companies Operating There

Some pharmaceutical distribution, IT services presence

Socio-Cultural & Diaspora Engagement

India and El Salvador gain from the impactful presence of their diaspora, which plays an essential part in enhancing Limited due to very small size. India builds strong bonds with its partner country through ICCR scholarships, occasional cultural events that spread cultural awareness. India is building strong educational bonds with its partner country through ITEC program, scholarships for Salvadoran students. 

  • The Estimated less than 100 people in El Salvador plays a pivotal role in enhancing the cultural and economic relationship between India and El Salvador. 
  • By harnessing Development assistance, training (soft power), India and El Salvador seek to reinforce their strategic strength and broaden their global influence.
  • The strong ties between India and El Salvador are underpinned by Negligible, which have a major impact on economic growth.

Socio-Cultural & Diaspora Engagement

Indian Diaspora

Estimated less than 100 people

Diaspora Remittances

Negligible

Role of Diaspora

Limited due to very small size

Cultural Exchanges

ICCR scholarships, occasional cultural events

Education Cooperation

ITEC program, scholarships for Salvadoran students

Hard Power & Soft Power Instruments

Development assistance, training (soft power)

India El Salvador Relations Recent Developments

India and El Salvador regularly engage through MoS External Affairs Meenakashi Lekhi (2023), focusing on trade, investment, and regional stability.  

  • Capacity building programs, small development projects underline key areas of engagement between India and El Salvador. 
  • Efforts are ongoing to overcome Geographical distance, language barrier, internal security situation, which affect bilateral cooperation. 
  • Both nations envision strong Increased trade, renewable energy, technical assistance cooperation in strategic, economic, and cultural domains.

India El Salvador Relations Recent Developments & Future Outlook

Recent High-Level Visits

MoS External Affairs Meenakashi Lekhi (2023)

Recent Agreements Signed

N/A prominent recently

Ongoing Projects

Capacity building programs, small development projects

Challenges / Issues

Geographical distance, language barrier, internal security situation

Future Prospects

Increased trade, renewable energy, technical assistance cooperation

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UPSC Relevance of India El Salvador Relations

  • Key agreements, high-level visits, and organizations like SCO, BRICS, or UN involving El Salvador are often tested in the prelims.
  • Economic cooperation and trade agreements with El Salvador support GS3 answers related to India’s external sector and economic diplomacy.
  • Diaspora support, humanitarian aid, and cultural diplomacy demonstrate ethical foreign engagement.
  • International relations within Public Administration or Law optional papers can cite treaties, agreements, or global governance themes from this relationship.

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