India and Chile Close in on Comprehensive Trade Agreement

India is nearing completion of a free trade agreement with Chile. The agreement could provide India access to critical minerals important for various sectors. The Comprehensive Economic Partnership Agreement will expand on the existing preferential trade agreement, covering digital services, investments, and more.

India and Chile are on the brink of finalizing a free trade agreement aimed at facilitating access to critical minerals essential for electronics, automotive, and solar industries. Officials indicate that negotiations are progressing and nearing completion.

The current talks seek to expand the preferential trade agreement established in 2006 into a more comprehensive economic partnership. This new pact will encompass sectors such as digital services, investment promotion, cooperation in micro, small, and medium enterprises, alongside critical minerals.

While India's trade with Chile remains modest, with a slight decline in exports, imports from Chile surged significantly. Meanwhile, India also plans discussions for an FTA with the ASEAN nations and is initiating talks with the Mercosur bloc.

(With inputs from agencies.)