India, Chile expedite efforts to finalize trade pact by year-end
What's the story
India and Chile are stepping up efforts to finalize a Comprehensive Economic Partnership Agreement (CEPA) by the end of this year. The move is part of a broader strategy to boost trade and investment between the two nations. Commerce Secretary Rajesh Agrawal met Chile's Vice-Minister of International Economic Relations Paula Estevez Weinstein on August 26 in Santiago, to push forward these talks.
Trade expansion
Proposed CEPA to create new opportunities in several sectors
The proposed CEPA is likely to create new opportunities in pharmaceuticals, healthcare, energy, minerals, agriculture, machinery, and engineering.
It will also strengthen cooperation in technology, talent, and resilient supply chains.
India has emphasized that the agreement should be balanced and commercially meaningful for businesses in both countries.
Trade dynamics
India, Chile commenced CEPA negotiations in May 2025
India and Chile began their CEPA negotiations in May 2025, after signing the Terms of Reference on May 8.
In FY2025-26, India's exports to Chile stood at $1.2 billion, 5.8% higher than the previous year, while imports from Chile were at $5 billion, a whopping 93% increase over FY2024-25.
The Ministry of Commerce and Industry has reiterated India's commitment to a balanced and mutually beneficial trade deal with Chile within this year.
Economic partnership
CEPA to strengthen economic ties between India and Chile
The CEPA is expected to further strengthen the economic ties between India and Chile. It will open new avenues for trade and investment while fostering cooperation in technology, talent, and resilient supply chains.
The successful conclusion of these negotiations would give further momentum to the growing bilateral trade and economic partnership between the two countries.