India Expands Economic Ties with Latin America Through Trade Agreements with Peru and Chile

India has made major progress in trade diplomacy by completing key negotiation rounds with Peru and Chile, strengthening its economic ties with Latin America. The move marks a strategic effort to widen India's global trade footprint and boost cooperation in sectors like critical minerals, pharmaceuticals, and investment.

Key Milestones in India-Peru and India-Chile Trade Talks

From November 3 to November 5, 2025, the 9th round of India-Peru Trade Agreement talks took place in Lima. Topics included Trade in Goods and Services, Rules of Origin, Technical Barriers to Trade, Customs Procedures, Critical Minerals, and Dispute Settlement. 

Both countries expressed a strong commitment towards finalising the agreement swiftly. On the Indian side were Ambassador Shri Vishvas Vidu Sapkal and Chief Negotiator Shri Vimal Anand, while the Peruvian delegation was led by Minister Teresa Stella Mera Gómez. The next round is expected in New Delhi in January 2026.

India-Chile CEPA Negotiations Advance Further

The 3rd round of India-Chile Comprehensive Economic Partnership Agreement (CEPA) negotiations was held in Santiago from October 27 to October 30, 2025. Discussions explored areas such as Trade in Goods and Services, Investment Promotion, Intellectual Property Rights, Rules of Origin, and Critical Minerals. 

Both sides reiterated their mutual resolve for a timely CEPA conclusion to boost supply chain resilience and enhance market access for businesses.

Strategic Push in Critical Sectors

Both agreements target key high-growth sectors. India is eyeing access to Latin America's rich critical mineral reserves and enhancing its exports in fields such as pharmaceuticals, textiles, food processing, and automobiles. These negotiations are integral to India’s move towards broader diversification of trade corridors.

Read More: India’s Trade Deficit Widens to $32.15 Billion in September; Gold Imports Surge!

Shared Commitment to Economic Integration

The bilateral negotiations reflect a mutual understanding of economic complementarity. Latin American partners seek enhanced access to the Indian consumer base, and India aligns its trade diplomacy to secure strategic raw materials and broaden its global reach. The economic frameworks under development hold the potential to unlock substantial $ flows across both regions.

Conclusion

India’s active engagement in Latin America via its recent negotiations with Peru and Chile underscores the nation's broader trade diversification strategy. By fostering agreements, India is paving the way for stronger bilateral ties and long-term economic cooperation in vital sectors.

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