India makes ‘substantive progress’ in trade pact talks with Peru, Chile
India has made “substantive progress” in its free trade agreement (FTAs) negotiations with Peru and Chile which seek to create new opportunities for cooperation in areas such as critical minerals, pharmaceuticals, automobiles, textiles and food processing, the government has said.
India’s negotiating team, which visited Chile and Peru between October 27 and November 5, took forward discussions on key issues in the areas of goods, services, investments and critical minerals cooperation setting the roadmap for concluding the talks.
“India’s growing trade engagement with Peru and Chile reflects its strategic focus on building stronger partnerships with the Latin American region through mutually beneficial and comprehensive economic cooperation frameworks,” per a statement issued by the Commerce Department on Thursday.
The proposed FTAs with Peru and Chile are economically and strategically important for India as it would help the country to strengthen its footprint in Latin America as part of its trade diversification programme. This is especially important in the light of steep tariffs of 50 per cent imposed by the US on Indian goods in August this year that has hit exports to the country.
“With Peru and Chile also rich in critical minerals, such as copper, zinc, lithium, molybdenum and rare earth elements, vital for India’s green energy transition, the trade pacts are of high interest to the country,” a source tracking the matter told businessline.
In her intervention at the 9th round of India-Peru FTA negotiations in Lima, Peru’s Minister for Trade Teresa Stella Mera Gómez reaffirmed her country’s commitment to the timely conclusion of the negotiations, highlighting the complementarity between both economies, the statement noted. She was optimistic that the pact will enhance trade and investment flows between the two countries.
“Both sides agreed to hold intersessional meetings to address pending issues ahead of the next round of negotiations proposed to be held in New Delhi in January 2026,” the statement noted.
India’s exports to Peru in FY25 increased 9 per cent to over $1 billion, while its imports increased 60 per cent to about $5 billion.
India and Chile marked substantial progress in the third round of India-Chile Comprehensive Economic Partnership Agreement (CEPA) negotiations in Santiago, Chile, on October 27-30.
“Both sides reaffirmed their shared commitment to an early and time-bound conclusion of the CEPA negotiations, which aim to enhance market access, strengthen supply chain resilience and deepen economic integration,” the statement pointed out.
Discussions covered a wide range of chapters including trade in goods and services, investment promotion, rules of origin, intellectual property rights, TBT/ SPS measures, economic cooperation and critical minerals.
India’s bilateral trade with Chile in FY25 stood at only $3.75 billion. Compared to India’s exports to Chile in FY25 worth $1.5 billion, China’s exports to the country in 2024 was $20.65 billion, indicating huge scope of growth for India.
Published on November 6, 2025
