India pushes trade expansion with Chile, Peru

India will resume negotiations with Chile and Peru on proposed trade agreements later this year, aiming to strengthen economic ties with the two South American nations. The next round of discussions with Chile is scheduled for October 27 in Santiago, while talks with Peru will begin on November 3 in Lima, officials confirmed.

The talks with Chile and Peru are being conducted separately, reflecting the distinct stages and priorities in each bilateral relationship. India will hold its second round of trade talks with Chile and the eighth with Peru.

India and Chile first implemented a preferential trade agreement (PTA) in 2006. The upcoming negotiations aim to upgrade this to a Comprehensive Economic Partnership Agreement (CEPA), expanding the existing framework to cover more sectors such as digital services, investment promotion, MSMEs (micro, small, and medium enterprises), and critical minerals.

Bilateral trade between India and Chile remains modest. In 2024-25, India’s exports to Chile fell 2.46 per cent to USD 1.15 billion, while imports surged 72 per cent to USD 2.60 billion. Major Indian exports include automobiles and pharmaceuticals, whereas imports from Chile are dominated by minerals valued at around USD 1.58 billion, alongside copper and chemicals. Chile ranks as India’s fifth-largest trading partner in the Latin America and Caribbean (LAC) region.

India’s exports to Chile are diverse, including motor vehicles, drug formulations, chemicals, iron and steel products, synthetic yarns, fabrics, ready-made garments, auto components, electrical machinery, leather goods, rubber products, aluminium items, and ceramics.

Peru, meanwhile, has become India’s third-largest trading partner in the LAC region. In 2024-25, India’s exports to Peru rose approximately 9 per cent to USD 1 billion, while imports increased 60 per cent to USD 4.98 billion. Indian exports mainly comprise motorcycles and three-wheelers, polyester and cotton yarns, pharmaceuticals, iron and steel products, plastics, rubber products, pipes for oil and gas industries, and tyres.

India imports from Peru include gold, copper, synthetic filaments, phosphates of calcium, fresh grapes, and fish flour, reflecting the complementary nature of the trade relationship.

Officials highlighted that these upcoming talks aim to not only boost trade volumes but also explore new avenues for investment and technological cooperation. With CEPA negotiations, India hopes to deepen its economic engagement with both Chile and Peru, strengthening its presence in the growing Latin American market.