India Seeks Economic Expansion in South America with Comprehensive Trade Agreements

India is negotiating comprehensive free trade agreements with Chile and Peru, with talks scheduled for August. The move aims to expand existing economic ties, covering a wide range of sectors, including digital services and critical minerals. India's trade with both countries has shown varied growth patterns, highlighting potential for improved relations.

India is set to strengthen its economic ties with South America as it prepares to engage in comprehensive free trade agreement negotiations with Chile and Peru this August. According to officials, this development comes as a strategic move to broaden the scope of existing preferential trade agreements (PTAs) into more encompassing economic partnerships.

While the India-Chile negotiations mark the second formal round of talks, discussions with Peru have progressed to the eighth round. Initially commencing in May, the talks aim to build on the PTA established in 2006, which was expanded in 2016. The envisioned Comprehensive Economic Partnership Agreement (CEPA) aims to include sectors like digital services and MSMEs.

India's trade dynamics with Chile and Peru reveal contrasting trends. In the 2024-25 period, India's exports to Chile dropped slightly, while imports surged significantly, driven by mineral demands. Conversely, trade with Peru recorded a substantial increase in both exports and imports, underscoring opportunities for economic collaboration in diverse industries.

(With inputs from agencies.)