Embassy of India
Havana

Indian exports to Cuba were $ 37.17 Million in 2008-2009 with an impressive year on year growth of 95.12%.Substantial exports from India take place via third countries especially Spain, Canada, and Panama. Even in Cuban exports to India, the share of trade via third countries is substantial. Main Commodities exported from India to Cuba: Electronic items, cotton yarn fabrics and made-ups, drugs, pharmaceuticals and fine chemicals, plastic and linoleum products, machinery and instruments, spices etc Main Commodities being exported to India from Cuba: Vaccines, medicines (like melagenina, interferon and streptokinase) nickel, and cigars.

Trade figures(All figures in USD Million)

DGCIS figures, Ministry of Commerce, GOI – excludes third country Indian exports to Cuba which are sizeable.

Exchange rate:
2005-06 1 US $ = Rs.44.2735
2006-07 1 US $ = Rs.45.2849
Up to June 2007 1 US$ = Rs.40.00 (adopted by mission for conversion)
Source:  Deptt of Commerce, Government of India.

In spite of excellent bilateral political relations and existence of the potential and desire to increase bilateral trade, Indian (direct and indirect) exports to Cuba remain low in the region of US$ 40 million due to the difficulties of access to foreign exchange in the hands of importing entities, the difficulties of doing business with Cuba’s socialist system, the small volume of orders for goods and relatively high transport costs from India. Several Indian companies are now taking a fresh look at the Cuban market. To counter the economic slowdown Cuba has initiated severe austerity measures and has cut imports by 20%.

Trade relations between India and Cuba rejuvenated with the decision of the Cabinet Committee on Economic Affairs to waive of dues of Indian companies on Cuba amounting to Rs.347 crore approx. It will facilitate resumption of credit facilities / insurance cover by EXIM Bank and Export Credit Guarantee Corporation of India (ECGC) to Cuba to enhance bilateral trade and investment. After a gap of 15 years an Indian Business delegation led by Mr Anil Mukim, Joint Secretary , Ministry of Commerce participated in the 26th Havana International Trade Fair from 2- 5 November 2008.

ONGC Videsh Limited has set up an office in Havana. It has stakes in eight deep sea blocks of Cuban EEZ sector for oil exploration. The first exploratory well will started shortly. Till 31 January 2010 the company has invested about 65 million USD in Cuba. 

 In June 2008, India and Cuba finalised India Cuba Hydrocarbon Agreement for cooperation in the oil and gas sector. The agreement would be signed shortly. Cuba has invited Indian investment in a new refinery project planned on the west coast of Cuba. The project is slated to have a capacity of 150 thousand barrels a day (7.5 million tonnes per annum). Further Indian companies could also participate in the capacity expansion and up gradation of the existing refineries. In 2007- 2008 ,the Cuba’s exports to India saw a quantum jump of more than 1100% due to the exports of mineral fuels, mineral oils and products of their distillation ,bituminous substances and mineral waxes (13.24 million USD). Keeping in view the excellent bilateral relations and Cuba’s ongoing agricultural reforms, in November 2009, India extended a Line of Credit of 5 million USD to Cuba for the purchase of agricultural machinery from India. The Cuban government thanked India for this goodwill gesture. Cuba is working on a proposal to establish a Milk powder production plant under this credit line. Cuba is very keen for the opening of the EXIM bank credit line. We have informed them to submit specific projects for the same.