Peru, over looking the Pacific Ocean, is nearly 17,000-km from India and with no direct flights to its capital Quito, getting there takes over 24 hours. Despite the distance and the cost involved, Peru is a major supplier of gold to India selling a staggering $5 billion last year. Total bilateral trade was only $7 billion.
But according to Peru’s Ambassador to India Javier Manuel Paulinich, things are looking up with key sectors opening up to do business with Delhi. This covers food security, mining, pharma, mobility and tourism.
In a chat with StratNewsGlobal, he said negotiations on a preferential trade agreement (PTA) could unlock opportunities for both nations. For instance, movement between the two countries could get a boost. Currently, if an Indian holds a Schengen visa or a US visa, or a British or Canadian visa, entry into Peru is smooth.
Critical Minerals
Peru’s vast reserves of critical minerals are an obvious attraction for India, more so given China’s stranglehold over their supply.
“For the very first time, a delegation of almost 30 people from India came to Peru. It was a very good sign that India is interested in our critical minerals and willing to invest,” he said. “Preliminary estimates say that Peru could become fifth in lithium reserves,” he said.
Peru’s lithium deposits are easier to exploit because many are found in hard rock formations close to the surface. “Rock lithium is much easier to exploit and economically more viable,” he noted.
“The Adani Group established a branch in Peru because there is interest in copper, and Birla is also planning a delegation,” he said. “Peru is the second largest exporter of copper and silver in the world and these minerals are very important for the global energy transition.”
“We already have around 60 Indian pharmaceutical enterprises, including small and medium enterprises. Add to that Indian IT firms. “TCS already has around 5,000 local employees in Peru,” he noted.
Defence
Peru’s spending on the military is no more than $2.6 billion, making up less than 1% of the total budget. The armed forces are small accounting for 81,000 personnel across army, navy and air force. It underscores the point that Peru faces no external enemies and insurgencies have been largely crushed.
Nevertheless, reports suggest Peru is in the market for South Korean tanks and armoured vehicles, even the Korea-developed FA-50 combat aircraft, and offshore patrol vessels for the navy.
Clearly, there’s some room for India but a major effort will have to be made to build relationships, showcase products with attractive lines of credit. Currently, Cybersecurity is one area which Peru is already tapping into.
An obvious strength is agriculture with Peru “the largest exporter of blueberries and grapes, and among the top exporters of avocados and artichokes.”
Peru has already started exporting blueberries, avocados and grapes to India. Agricultural products are part of the ongoing PTA discussions between the two countries. “We are discussing reducing customs duties for our fruit products,” he said.
The ambassador said Peru is keen to attract Indian investment in infrastructure projects, especially ports. Companies such as Adani Ports could be potential participants in Peru’s upcoming port development initiatives. “We are planning to bring a roadshow for this greenfield project to India,” he said.
The ambassador also spoke about Peru’s globally acclaimed cuisine and the historical connection of potatoes with Peru. “Potatoes came from Peru. We have more than 3,500 varieties,” he said.
He revealed that Peru has started collaborating with India through a potato research centre in Agra. “The idea is to find which varieties are most suitable for India’s climate and tastes,” he explained. A gastronomy festival is planned in Delhi in June.
“If there is direct connectivity between Delhi and Madrid, tourism and business delegations to Peru will increase significantly,” he said. The envoy also expressed hope that direct Delhi-Madrid flights could resume soon.
