Economic historians when looking back at the 21st century will be probably talking about a seismic change in the world’s economic geography led by Asia. They will not be just talking about Japan, Korea or China. It is very likely that India will be among the protagonists because of its extraordinary resources—most precious of all, the size and skills of its labor force—its resilient democracy and because of the impressive growth record the country has achieved in the last few decades. At first blush, India and Latin America may not seem like a natural fit. Placed on opposite sides of the globe, they have few cultural and historical ties. And even though India is not yet on the radar of most Latin American and Caribbean policymakers and businessmen, at least not to the same extent as China, the region cannot afford to continue to ignore the implications of its emergence. True, bilateral trade and investment have yet to acquire a critical mass and India has yet to become a major competitor in world markets for goods. However, any cursory analysis of the complementarity between the two economies shows that the potential for massive bilateral trade is there; not unlike that which the region has been experiencing with China. Likewise, recent trends and the ultimate political imperative to generate jobs suggest that India is on its way to becoming a major exporter of manufacturing goods. In services, it is already the dominant world exporter. It is with these facts in mind, and with the aim to better inform the Bank’s and its stakeholders’ policies, that the Integration and Trade Sector x << India: Latin America’s Next Big Thing? of the Inter-American Development Bank has prepared this report. The focus is on trade and investment between Latin America and the Caribbean and India. The motivation is to better understand and promote the potential for greater trade and integration between the two economies, while singling out the main obstacles that have so far blocked its realization. But that is not all. In its search for useful policy lessons, the report also looks at the strikingly similarities in the development strategies pursued by both economies and their frequently divergent results. It also delves into the competitive implications for LAC producers of the emergence of another one-billion-plus-people economy. Only 100 years ago, Europe towered over the rest of the world. By some forecasts, the combined gross domestic products of China and India will be 10 times larger than Europe’s entire annual output by 2040. Latin American countries are aware of such projections, which is why trade pacts with Asian counterparts are proliferating. Latin American countries have signed, negotiated or implemented more than 25 pacts with Asian countries over the past few years, and India is among these partners already. In the past, Latin America and India were rarely at the table when major decisions were made. Now they are often seated side-by-side, shaping global negotiations on topics ranging from trade to climate change. We are starting to see what the century of Asia will look like and Latin America cannot afford to be absent.