India-Peru Ties: A New Era of Trade, Connectivity And Defence Cooperation

Peru is preparing to sign a Free Trade Agreement (FTA) with India later this year, marking a critical moment in strengthening trade, connectivity and tourism between the two nations. In an exclusive conversation with StratNews Global, Peru’s Minister of Foreign Trade and Tourism, Desilú León, shared insights into the potential of this agreement during her visit to New Delhi for the 10th India-Latin America and the Caribbean (LAC) conclave (March 19-20, 2025) and the importance of India-Peru ties.

India-Peru Ties: Trade Opportunities

The FTA negotiations between Peru and India have made significant progress. “We have had seven rounds of negotiations so far. In 2023, we successfully resumed negotiations, and during 2024, we had two highly productive rounds that allowed us to bring our positions closer on many key issues. We are looking forward to the next round of negotiations, which will help us move closer to finalising the agreement,” León noted.

Peru is particularly keen on enhancing exports in sectors like agriculture, technology, mining and infrastructure. The country is well-known for its high-quality agricultural products, including grapes, blueberries, avocados and mangoes. With the FTA, Peru aims to increase exports of these superfoods to India.

“In the agricultural sector, we see a great opportunity to increase food exports, including superfoods, fruits, vegetables, grains and legumes. Peru has positioned itself as one of the world’s leading suppliers of high-quality and sustainable agricultural products,” León further stated.

The technology services sector also holds promise, with strong potential for collaboration in digital services. She said: “We believe that in the trade of services, there is strong potential to enhance partnerships between Peruvian and Indian companies, especially in technology-intensive services provided through the digital economy.”

The mining sector remains a primary focus for both nations. As León explained, “There is room to continue promoting investments and trade in mining-related services.”

Additionally, Peru is looking to attract Indian investments in infrastructure, including airports, ports and rail systems. The country is offering tax-free zones and other incentives to encourage investment. “Investment in infrastructure is crucial for the growing sector in Peru, and we have various projects underway, including trains and highways.”

Key Sectors For Trade Enhancement

The FTA is poised to strengthen bilateral trade in several vital sectors. In 2024, gold was Peru’s primary export to India, accounting for 89% of the total value, amounting to approximately $4 billion. Other notable exports include copper (around $400 million), silver and zinc.

Tourism: A New Growth Frontier

Tourism is another promising area where the FTA could lead to growth. Peru is increasingly recognised as a destination for Bollywood films, with iconic locations like Machu Picchu being featured in various productions. The country is also positioning itself as a prime location for destination weddings and joint film productions with India.

León stated: “Peru offers beautiful landscapes, diverse cultural settings and warm hospitality, making it a prime destination for the Indian film industry and destination weddings. We are exploring opportunities to strengthen our presence in these segments by collaborating with key industry players.”

Beyond Machu Picchu

Peru has many lesser-known gems that appeal to Indian tourists. The country’s rich culture, history and globally acclaimed cuisine are becoming increasingly popular with travellers seeking unique experiences. As León pointed out: “Beyond Machu Picchu, Peru offers many other incredible destinations, including the Nazca Lines, the Colca Canyon, the Amazon Rainforest and Lake Titicaca. We are working to promote these lesser-known destinations, which offer rich cultural and natural experiences.”

Visas

Peru is simplifying its visa process for Indian nationals. “If an individual holds a U.S., UK or Schengen visa with six-month validity, they can visit Peru without requiring an additional visa. For others, the visa process is efficient, taking no more than three or four working days,” the minister explained.

Connectivity: Bridging The Distance

Air connectivity between India and Peru is currently limited but discussions are on to improve it. “We have been in discussions with airlines, and Turkish Airlines will begin operations in Peru by mid-2025, connecting Istanbul with Lima. We are also in talks with Air India to establish direct flights,” León remarked.

Peru’s strategic location in Latin America, along with its natural resources and beauty, makes it an attractive investment destination for Indian businesses. With the FTA and initiatives to improve tourism and connectivity, bilateral trade and cultural exchanges are expected to rise significantly.

Cooperation On Rare Minerals

On the sidelines of the Raisina Dialogue 2025 (March 17-19) Elmer José Germán Gonzalo Schialer Salcedo, Peru’s Minister of Foreign Affairs, highlighted key areas of cooperation with India, particularly the FTA, rare minerals and defence.

Schialer expressed his appreciation for the opportunity to discuss growing India-Peru ties. “India is one of Peru’s most important trading partners in Latin America. However, we believe that without a Free Trade Agreement (FTA), we are not fully realising our potential,” he stated. “We are looking forward to having the FTA signed by the second semester of this year. It’s been a long process but we are close to reaching a consensus after several rounds of discussions.”

Schialer emphasised Peru’s importance in the global mining market, especially its lithium reserves, part of the Lithium Triangle with Bolivia and Chile. “We have an advantage in that our lithium reserves are more accessible, being located on the surface. This makes extraction more efficient.” This creates a significant opportunity for India, especially with the growing global demand for lithium in electric vehicles and renewable energy sectors.

However, he also addressed the challenges Peru faces due to its lithium deposits being associated with uranium, a unique issue that presents both complications and opportunities. “The extraction process is complex but the economic rewards are significant. We are already seeing interest from international companies, including those from India, who are looking at these opportunities closely.”

Defence Cooperation

Defence cooperation is also on the table. Schialer noted: “India’s defence capabilities, especially in areas like technology and naval vessels, are well known. Peru has been developing its own shipbuilding industry, and we are open to exploring partnerships with India in this sector. There is a growing need for collaboration in defence technologies, and India’s advancements can greatly benefit Peru.”

Peru is modernising its defence infrastructure and this presents an opportunity for cooperation with India. Schialer concluded with optimism about the future of India-Peru ties: “There is tremendous potential for collaboration between Peru and India, and we are committed to making the most of these opportunities.”

(The author has over three decades of experience in covering Defence, Space and the Ministry of External Affairs, with a special focus on strategic affairs. Views expressed in this article are personal.)