India is fast-tracking free trade negotiations with Latin American partners: talks with Peru could be concluded latest by the first quarter of 2026. Trade talks with Chile are also advancing, sources told StratNewsGlobal.
An Indian team is expected to leave for Santiago, Chile by the weekend for two days of discussions followed by three days in Lima. Peru appears to be further along in the negotiations.
“The pace of discussions with Peru has picked up after an 18-month pause. If momentum continues, we could see closure by early 2026 or possibly even by the end of this year,” a senior diplomatic source confirmed to StratNewsGlobal.
Peru Talks
The meeting in Lima will mark the eighth round of India–Peru FTA talks. The last round was in New Delhi in April 2024. Sources say many of the core issues have already been addressed, and the remaining discussions are now centered on tariff concessions, rules of origin, and market access for sensitive sectors.
Trade figures are small. Last year India’s exports to Peru stood at $1.02 billion, while imports reached $4.98 billion, primarily driven by shipments of gold, copper, and other key minerals. Indian exports to Peru include automobiles, pharmaceuticals, textiles, and industrial components.
Trade experts see strategic value in the Port of Chancay, which is emerging as a logistics hub in South America. “It’s growing connectivity with Asia could dovetail well with India’s Indo-Pacific strategy,” said Dr. Aparaajita Pandey, a Latin America specialist at Amity University.
Chile Talks
The talks with Chile are part of a broader Comprehensive Economic Partnership Agreement, building on a preferential trade pact originally signed in 2006 and expanded in 2017. The current negotiations, which began in May this year, aim to expand cooperation to cover digital services, MSMEs, investment promotion, and access to critical minerals.
Chile is the world’s second-largest producer of lithium, a key input for electric vehicle batteries. As India intensifies its transition to clean energy and electric mobility, bilateral collaboration in mining and value-added processing is becoming a major focus of the talks.
“There is strong trust between our companies,” Chile’s Ambassador to India, Juan Angulo, told StratNewsGlobal in an earlier interaction. “Indian businesses are exploring opportunities in Chile’s mining sector, especially in sectors like agro-tech, lithium processing, and manufacturing.”
Officials are hopeful but both sides are still in the process of exchanging offers and aligning on key sectors.
“With Chile, the framework is broader, and negotiations are at an earlier stage. But both countries are committed to an outcome in 2026,” an official familiar with the talks said.
Why Peru, Chile Matter
India is racing to secure new trade partnerships amid shifting global trade dynamics and rising protectionism. The US tariffs on Indian goods have created an added sense of urgency, pushing New Delhi to deepen trade ties with emerging economies across Latin America and Africa.
Chile and Peru are seen as important to this strategy, not only as sources of critical raw materials but also as entry points to Latin American markets. Despite their potential, India’s exports to Latin America accounted for just 3.5% of total exports in FY2024–25, stressing the need for better market access.
