One is accustomed to reading reports about India’s $100 billion plus trade deficit with China. But India has a deficit even with tiny Chile largely because it is a major exporter of copper, minerals and gold.
India exports around $1.45 billion mostly cars, drugs and steel while importing more than $2.5 billion of minerals and key metals. It explains why the two countries are fastracking negotiations on the Comprehensive Economic Partnership Agreement (CEPA).
In an exclusive interview, Chile’s Ambassador to India, Juan Angulo, said the CEPA would cover critical minerals, electric mobility to technology, startups, agriculture, defence cooperation and tourism. The focus would be on long-term complementarities rather than short-term commercial gains.
“This is not a negotiation starting from scratch,” he said, pointing out that India and Chile have shared a Preferential Trade Agreement (PTA) since 2007, which was expanded in 2017. That agreement already covers approximately 2,300 tariff lines and has provided a strong foundation for deeper economic engagement.
“Chile is the only Latin American country that has such a bilateral preferential trade agreement with India. Now we are ready to move to the next level.”
The CEPA is expected to include nearly three dozen chapters covering not only trade in goods but also services, investments, mobility, digital cooperation and regulatory issues.
One of the most significant aspects of the future partnership is expected to revolve around critical minerals, particularly lithium and copper.
As one of the world’s leading producers of lithium and copper, Chile has emerged as a crucial partner for countries pursuing clean energy transitions. India, which is rapidly expanding electric vehicle manufacturing and battery production, sees reliable access to these resources as strategically important.
“It is not enough simply to sell lithium or copper. The future lies in participating together across the value chain, from extraction to battery manufacturing and other advanced technologies.”
He added that Chile offers something equally important as mineral reserves: regulatory certainty. Mining investments require billions of dollars and decades of planning. According to him, Chile’s stable institutions, transparent regulations and predictable investment environment make it a trusted long-term partner for international investors.
“Resources alone are not sufficient. Investors also need legal certainty, infrastructure and institutional stability. Chile offers that combination.”
He confirmed that Chile is already engaging with several Indian companies interested in lithium opportunities, while discussions continue under the broader framework of the CEPA.
Describing India as one of the world’s foremost technology powers, he praised its rapidly expanding innovation ecosystem and engineering talent. India produces more than a million engineers annually, he noted, creating enormous opportunities for international collaboration.
Chile, meanwhile, has developed one of Latin America’s strongest startup ecosystems through its internationally recognised Startup Chile programme. With free trade agreements covering more than 60 economies representing the vast majority of global GDP, Chile offers Indian companies access to markets across the Americas, Europe and Asia.
Combined with strong digital infrastructure, political stability, a highly developed banking system and a time zone aligned with the western United States, Chile presents an attractive destination for technology investment.
He noted that Chile has already purchased an Indian-built naval vessel and continues to evaluate Indian defence products alongside suppliers from other countries. Indian defence companies regularly participate in procurement processes whenever Chile issues international tenders.
While no major defence deals are currently under negotiation, both governments continue to maintain active institutional contacts.
Recognising the increasing movement of professionals and investors between the two countries, Chile has introduced a new multiple-entry visa specifically designed for Indian business travellers. The visa is valid for two years and allows repeated stays of up to 90 days per visit without requiring fresh applications each time.
The initiative was introduced to support technicians, engineers, consultants and business executives who frequently travel between India and Chile while overseeing investment projects. Indian tourists holding a valid United States visa continue to enjoy visa-free entry into Chile under the country’s existing policy.
Chile has steadily expanded exports of premium agricultural products including cherries, apples, kiwis, grapes and walnuts to India. It is also promoting salmon, dried fruits, fruit concentrates, processed foods and premium wines for the Indian market.
Chile has a police attaché at its embassy in New Delhi, which has facilitated exchanges of police personnel and specialised training programmes between the two countries. He said these exchanges were relatively new but increasingly valuable in strengthening institutional cooperation.
