India, Chile to resume free trade talks in December
What's the story
India and Chile are expected to resume negotiations for a proposed free trade agreement (FTA) in December. The deal with the South American nation could give India access to critical minerals, which are essential for electronics, auto, and solar sectors. The third round of talks for a Comprehensive Economic Partnership Agreement (CEPA) was held in Santiago and concluded on October 30.
Trade expansion
India's strategic focus on Latin America
A government official told ET that India's increasing trade engagement with Chile is part of its larger strategy to strengthen ties with the Latin American region. The CEPA would build on the existing preferential trade agreement (PTA) between India and Chile, which was implemented in 2006. The new deal would cover a wider range of sectors such as digital services, investment promotion and cooperation, MSMEs (micro, small and medium enterprises), and critical minerals.
Trade dynamics
Bilateral trade between India and Chile
The bilateral trade between India and Chile is relatively small. In 2024-25, India's exports to Chile fell by 2.46% to $1.15 billion, while imports surged by a whopping 72% to $2.6 billion. Major Indian exports include automobiles and pharmaceuticals, while minerals worth around $1.58 billion are the top import from Chile. Other imported goods include copper and chemicals.
Trade partner
Chile's role in India's Latin American trade
Chile is India's fifth-largest trading partner in the Latin American region. The bilateral trade includes a wide range of Indian exports such as motor vehicles/cars, drug formulations, chemicals, iron and steel products, man-made yarns and fabrics, cotton fabrics and made-ups. Other exports include ready-made garments (RMG), auto components, electric machinery and equipment, leather goods, rubber products, aluminiumum and ceramics.