The port city of Thoothukudi is likely 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.