India is expanding its export basket with proposed trade agreements with two South American countries, Chile and Peru, both being negotiated separately since months now.
An official from the Indian government said the next round of negotiations between India and Chile are slated to start from October 27 in Santiago, lasting five days; while talks with Peru will commence on November 3 in Lima and last three days.
This will be India’s second round of talks with Chile and eighth round of deliberations with Peru.
Chile is the fifth-largest trading partner of India in the LAC (Latin American countries) region, while Peru has emerged as the third-largest trading partner of India in the Latin American and Caribbean regions.
India’s exchange of goods with the two comprise auto, pharma, cotton, chemicals, iron and steel products, leather goods, rubber, tyres, gold, ceramics etc.
Also Read: India, Chile ink terms for comprehensive free trade pact
India and Chile implemented a preferential trade agreement (PTA) in 2006. The two are now negotiating to widen its scope for a comprehensive economic partnership agreement (CEPA) that aims to build upon the PTA and seeks to include a broader range of sectors, including digital services, investment promotion and cooperation, MSMEs (micro, small and medium enterprises), and critical minerals.
While the largest Indian exports to Chile are auto and pharma; India imports minerals worth around USD 1.58 billion from the Latin American country, besides copper and chemicals.
However, bilateral trade between the two is rather modest, with India’s exports to Chile dropping by 2.46 per cent in 2024-25 to just USD 1.15 billion; and its imports from the country growing a staggering 72 per cent to USD 2.60 billion.
From motor vehicles/cars, drug formulations, chemicals, iron and steel products to man-made yarn, fabrics, cotton fabrics, RMG (ready-made garments), auto components, electric machinery and equipment, leather goods, rubber products, aluminium and its products, and ceramics – India’s exports to Chile are diversified.
India’s main exports to Peru, meanwhile, include motorcycles and three-wheelers, polyester and cotton yarns, pharmaceuticals, iron and steel products, plastic products, rubber, pipes for the oil and gas industry, tyres, pipes, etc.
India’s exports to Peru grew by 9 per cent in 2024-25 to USD 1 billion, while imports, which mainly constitute gold, copper, synthetic filaments, phosphates of calcium, fresh grapes, and fish flour, grew 60 per cent to USD 4.98 billion.
Follow us
