India–Chile FTA talks near conclusion, to unlock critical minerals: Piyush Goyal

India is set to finalise a free trade agreement (FTA) with Chile soon, which will open up access to critical minerals essential for key manufacturing sectors, Commerce and Industry Minister Piyush Goyal said on Friday.

Speaking at an event of the Institute of Chartered Accountants of India (ICAI) in Greater Noida, Goyal said, “We are engaged in active dialogue with several developed nations for free trade agreements. We will soon close the FTA with Chile. It will open up critical minerals for us.”

Chile, a resource-rich South American nation , is not a full member of the Mercosur trade bloc (which includes Argentina, Brazil, Paraguay, Uruguay and Bolivia). It is only an associate member, meaning it cooperates with Mercosur but does not participate fully in the bloc’s common market or decision-making. India has had a Preferential Trade Agreement (PTA) with Mercosur since 2004, offering limited tariff benefits on select goods, but there is no comprehensive FTA with the bloc or its members.

India and Chile have had a PTA in place since 2006, which provides preferential tariffs on certain products. The ongoing negotiations aim to expand this into a Comprehensive Economic Partnership Agreement (CEPA) or full FTA, covering digital services, investments, MSMEs (micro, small and medium enterprises), and critical minerals .

The deal is particularly significant because Chile holds vast reserves of lithium, copper, rhenium, molybdenum and cobalt , which are crucial for India’s electronics, electric vehicle, and solar sectors . Access to these minerals will help reduce dependence on traditional suppliers and support India’s push for clean energy and advanced manufacturing .

Despite strategic importance, bilateral trade 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 .

Goyal also highlighted India’s recent trade diplomacy, noting that in the past four years, India has concluded agreements with Mauritius, Australia, UAE, New Zealand, Oman, the EFTA bloc, the UK, and the EU , effectively covering 32 major European countries . These agreements, he said, offer significant opportunities for skilled Indian youth in sectors where India has a competitive advantage.

Criticising UPA-era FTAs, he said they led to increased imports without corresponding export growth. “They were not bold enough to offer opportunities to Indian businesses,” he remarked, adding, “India stands as an oasis in a desert” amid rising global uncertainties.