India-Chile trade pact: India looking to extract last mile concessions in critical minerals
India is trying to secure greater concessions for access to critical and strategic minerals in the last stretch of its negotiations for a free trade agreement with Chile, sources said.
The proposed India-Chile comprehensive economic partnership agreement (CEPA), once secured, could give India long term access to mining blocks in Chile and supply chain security, the source added.
“There is copper and lithium in Chile. It is also willing to give India access to some rare earth. But there are some issues that need to be settled, especially around some legal constraints that Chile is facing on the matter,” the source tracking the matter told businessline.
Online meetings between the two countries are on and once the glitches are ironed out, which could happen soon, the pact will be signed, the source noted.
India is also looking at opportunities to export more automobiles, pharmaceuticals, iron & steel, aluminium products, sugar, cereals, fertilisers and engineering goods.
Chile is interested in greater market access for its blueberries, cherries, walnut very, salmon. citrus fruits, apples, apart from manufacturing goods.
“Once the final issues are ironed out, there is a possibility that the Commerce & Industry Minister Piyush Goyal will visit Chile to sign the deal. But it all depends on this last stretch of negotiations and how close they get to our demand,” the source added.
The India-Chile CEPA will cover a substantial part of the bilateral trade in goods, as well as services, digital services, MSMEs and investment collaboration.
“Both sides see a lot opportunity for expansion, as bilateral trade was only at $3.75 billion in FY25,” the source said.
In FY25, India’s exports to Latin America at $15.17 billion was just about 3.5 per cent of its total exports, while its exports to Chile was at $1.15 billion. In comparison, Chile’s imports from China in 2024 were at $20.65 billion.
Focussing on critical minerals in its FTAs is in line with India’s overall strategy to aggressively secure such minerals crucial for its transition to green economy as these are essential for technologies like electric vehicles (EVs), solar panels, wind turbines, and advanced electronics.
“In the India-Chile CEPA, India is seeking long term preferential access to their mines (exploration of blocks) and supply chain security,” the source said.
Published on January 23, 2026
