Indo-Latvian Economic and Commercial Relations

The Republic of Latvia with a population of 2.6 million occupies an area of 64,600 square kilometers. It is located on the eastern shore of Baltic Sea and bounded by Estonia on the North, Lithuania on the south and Russia and Byelorussia on the east. The Parliament called 'Saeima' consists of 100 elected representatives from five electoral regions under proportional representational system by the Latvian citizens. The 'Saeima' is elected for a period of four years. Latvia is a multi-religious society where the predominant Church is the Evangelist Lutheran because of Latvia being in the German sphere of influence. The next biggest Church is Roman catholic. Other Christian churches like Latvian Orthodox, Russian Orthodox, Old believer Orthodox, etc. are also present.

India recognized Latvia as a sovereign and independent State on 7 September 1991 and decided to establish diplomatic relations on February 25, 1992. Our Embassy in Stockholm is concurrently accredited to Riga. Latvia appointed its Honorary Consul General in India in August 1994.Latvian leadership at all levels is keen to strengthen relationship with India and would like to see this relationship grow. Latvian President, H.E. Mr. Guntis Ulmanis paid a State visit to India in October, 1997. The then Minister of State for External Affairs, Shri Salman Khurshid, visited Riga in August-September, 1995. Foreign Office Consultations between the two countries took place in June, 2001 at Riga. The Indian delegation for the consultation was led by Shri R.S. Kalha, Secretary (West) and Latvian delegation was led by Mr. Maris Riekstins, Secretary of State, Latvian Ministry of Foreign Affairs. Visit by On the invitation of Mr. Yashwant Sinha, Indian Minister of External Affairs, the Deputy Prime Minister of the Republic of Latvia, Mr. Ainars Slesers visited India from 24-29 November, 2003. During the visit, Deputy Prime Minister Slesers exchanged views with the Minister of External Affairs on issues of mutual concern and also reviewed bilateral ties. Mr. Slesers had discussions with Mr. Arun Shourie, Minister of Communications and IT. Mr. Slesers and his team visited the India International Trade Fair. Other highlights of the visit were the signing of an Agreement of Mutual Cooperation between India Trade Promotion Organization and Latvian Development Authority and the meeting of the first India-Latvia Joint Business Council. India's assistance to Latvia through the ITEC programmes highly appreciated. Relations between the two countries are warm, friendly and growing in strength especially in the areas of trade and investment.

Indo-Latvian Trade

Exports:

India's share in Latvian exports in 2002 was US$ 1.19 million, a growth of over 47% over 2001. The main groups of commodities exported from Latvia to India included metal and metal product (33.4%), products of chemical industries (33.7%), raw hides, furskins and such articles (16.83%), means of transport (7.82%) and machinery and mechanical appliances (5.87%).

Imports:

Latvia´s imports from India increased by 58% in 2002 vis-a-vis 2001. In 2001, India exported US$ 4.8 million worth of goods and services while in 2002 it rose to US$ 7.6 million. The biggest sectors of import from India were prepared foodstuffs (34%), products of chemical and allied industries (18.73%), textiles and textile articles (21.72%), vegetable products (12.96%).

Export and Import between Latvia and India between 1998-2002 (in US$)

Export and Import between Latvia and India (2002 Q1 - 2003 Q2)

Latvia's imports from India - Sectorwise breakup (2003 Q2)

India's investment in Latvia

India takes 52nd place in the list of investing states with the total amount of US$ 288 thousands in the first 3 months of 2003.

Till 1 April 2003 there were 34 India-Latvia joint ventures registered in the Register of Enterprises. UshaComm has a contract with Lattelekom for providing telecom and software expertise.

Indo-Latvian Trade Agreements

Details of the concluded trade agreements -

• Agreement between the Government of the Republic of Latvia and the Government of the Republic of India on Trade and Economic Co-operation and a Memorandum of Understanding on Counter Trade and Banking Arrangement (1993)
  
• Declaration of Principles and Directions of Co-operation between the Republic of Latvia and the Republic of India
  
• Agreement on Economic and Technical Co-operation between the Government of the Republic of Latvia and the Republic of India
  
• Agreement between the Governments of the Republic of Latvia and the Republic of India on the Inter-Governmental Commission on trade, economic, scientific, technological and cultural co-operation (signed on June 27, 2001)

Source : Indian High Commission, Latvia