India, Chile Trade Ministers to Discuss FTA Progress Next Week: Official

India, Chile to Boost Free Trade Agreement Talks

The ongoing negotiations for a proposed free trade agreement (FTA) between India and Chile are set to receive a significant boost during the upcoming visit of the Chilean trade minister to India next week. According to an official, the minister will arrive accompanied by a business delegation.

The proposed FTA, if successful, would provide India with access to critical minerals, which are essential inputs for various sectors including electronics, auto, and solar. Chile is renowned for its vast lithium reserves, holding the world's largest reserves, and is also the top producer of copper.

India and Chile have been working together since 2006, when they implemented a preferential trade agreement (PTA). The two nations are now negotiating to expand the scope of this agreement to a comprehensive economic partnership agreement (CEPA). CEPA aims to build upon the existing PTA by incorporating a broader range of sectors, including digital services, investment promotion and cooperation, MSMEs (micro, small, and medium enterprises), and critical minerals.

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The bilateral trade between India and Chile is currently modest. In the fiscal year 2024-25, India's exports to Chile declined by 2.46% to USD 1.15 billion. However, imports from Chile saw a significant surge, growing by 72% to USD 2.60 billion.