Most countries in Latin America are experiencing the longest uninterrupted period of democracy in their respective histories. The political landscape of the region faced a collective challenge of the rise of new leaders, a polarised citizenry coupled with the economic slowdown and growing social and economic inequalities and a fast-changing international environment. Developments in Latin America have a significant impact on its neighborhood, especially relations with the United States (US). In looking beyond the neighbourhood, these countries are turning to Asia in an effort to not only diversify trade and economic partnerships but also diplomatic relations. Reciprocally, China and India are deepening relations through political, economic and defence engagements.

As India begins to extend its approach beyond the conventional Latin American partners in the region; the economic and strategic potential of the Central American States has gained prominence among Indian policymakers. Within the region the Central American Integration System (SICA) remains critical for India to enhance its economic ties to Central America as the strategically important bridge between North and South America and between the two oceans - the Atlantic and the Pacific. The SICA was set up in 1991 as the revived institutional framework for Regional Integration in Central America. As both India and SICA nations look to strengthen their relations, it becomes imperative to explore their respective strengths vis-a-vis the requirements that each has and identify areas of cooperation that will propel the relationship in the future.

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