India Deepens Latin American Trade Ties, Eyes Critical Mineral Security Through FTAs With Peru And Chile

India has intensified trade negotiations with Latin America, advancing talks with Peru and Chile to boost economic ties and secure critical minerals vital for its clean energy goals.

The 9th India–Peru Trade Agreement round in Lima (3–5 November 2025) achieved major progress across trade, customs, and mineral cooperation.

The Indian delegation was led by Vimal Anand, Joint Secretary and Chief Negotiator, accompanied by Ambassador Vishvas Vidu Sapkal, while the Peruvian side was represented by Minister of Foreign Trade and Tourism Teresa Stella Mera Gómez and Vice Minister César Augusto Llona Silva.

Both countries agreed to hold intersessional meetings before the next round in New Delhi in January 2026.

Earlier, from 27 to 30 October 2025, India and Chile held the third round of Comprehensive Economic Partnership Agreement (CEPA) negotiations in Santiago, where discussions covered trade in goods and services, investment promotion, intellectual property, technical standards, and critical minerals.

Both sides reaffirmed their commitment to concluding the pact within a fixed timeframe to enhance market access and supply chain resilience.

These discussions hold particular significance as India seeks to include a dedicated chapter on critical minerals for the first time in its trade agreements.

According to government sources cited by CNBC-TV18, India imports gold from Peru and lithium, copper, and molybdenum from Chile, and aims to secure preferential exploration rights and stable long-term pricing for these minerals to safeguard future supply chains.

While Indian firms are already eligible to participate in copper mining auctions in Chile, officials noted that India’s per capita copper consumption is still less than half that of developed nations, with demand expected to surge as industrialisation and electric mobility accelerate.

The proposed FTAs are seen as crucial to ensuring access to these resources, particularly amid rising geopolitical uncertainty and global supply chain disruptions.

At the same time, both Peru and Chile are looking to diversify their export destinations and reduce dependence on a few dominant buyers.

Officials pointed out that despite copper ore being sold at the price of refined copper, China has been paying a premium by covering extraction and refining costs, potentially allowing it to monopolise future trade in the commodity.

In the broader context, India is also pursuing duty concessions for engineering goods and industrial exports to Latin American markets, aiming to leverage shorter freight routes created by China’s new port on Peru’s Pacific coast.

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