India, Chile near trade deal with critical minerals in focus
What's the story
India and Chile are nearing the final stages of a trade agreement, with commerce secretary Rajesh Agrawal likely to visit the South American nation this month. The proposed Comprehensive Economic Partnership Agreement (CEPA) is expected to provide Indian exporters with greater market access. However, the strategic importance of Chile's mineral resources has become a major focus for New Delhi.
Mineral significance
Bilateral trade jumped nearly 74% in the June quarter
Chile, the world's largest copper producer, is also home to some of the biggest lithium reserves. The country also produces other minerals that are crucial for industrial and clean-energy supply chains.
India's latest trade data highlights this growing relationship, with bilateral trade rising nearly 74% to $2.06 billion in the June quarter from $1.19 billion a year ago.
Import increase
Exports also increased during the period
India's imports from Chile nearly doubled to $1.66 billion in the quarter, a 95.1% jump from $852 million last year.
Exports also increased by 20.3% to $402.7 million during this period.
However, the sharp difference has widened India's trade deficit with Chile to $1.26 billion from $517.4 million last year, with minerals accounting for a major chunk of this increase.
Supply chain security
Focus on securing critical mineral supplies
India's imports of bulk minerals and ores from Chile surged 76.4% to $882.8 million in the June quarter, up from $500.5 million last year.
Copper and copper products also saw a major jump in imports, rising to $374.9 million from some $1.1 million previously.
This mineral focus comes as New Delhi aims to secure resilient supply chains for critical raw materials while minimizing vulnerabilities due to concentrated global production and processing.
Trade talks
CEPA negotiations started in May 2025
India and Chile signed the terms of reference for CEPA negotiations on May 8, 2025. The first round started later that month in New Delhi.
So far, four rounds of talks have been held, with the latest one concluding in New Delhi on December 5.
During a visit to India in May, Chilean foreign minister Francisco Perez Mackenna and senior trade officials discussed the early conclusion of this agreement with commerce minister Piyush Goyal.
Export growth
Major export categories for India
The CEPA agreement could also enhance prospects for Indian companies in Chile. Major export categories include motor vehicles, pharmaceuticals, chemicals, engineering products, and textiles.
Motor vehicle exports increased to $98.6 million in the quarter from $86.6 million last year while iron and steel products saw a jump to $46.7 million from $5.8 million previously.
Pharmaceutical formulations continued to be a major export at $49.1 million during this period.