India has concluded key rounds of trade talks with Peru and Chile, as part of its effort to diversify export markets amid the escalation in US tariffs on Indian goods.
The ninth round of India-Peru Trade Agreement negotiations, held in Lima, Peru, from 3 to 5 November, witnessed substantive progress across key chapters of the proposed agreement, including trade in goods and services, rules of origin, technical barriers to trade, customs procedures, dispute settlement, and critical minerals, said a ministry of commerce and industry statement on Thursday morning.
Peru’s minister of foreign trade and tourism Teresa Stella Mera Gómez reaffirmed the Latin American country’s commitment to the timely conclusion of the discussions, highlighting the complementarity between both economies and expressing optimism that the agreement will enhance trade and investment flows, the release said.
Indian ambassador to Peru Vishvas Vidu Sapkal underlined India’s sustained growth momentum and noted that the agreement would create new opportunities for cooperation in areas such as critical minerals, pharmaceuticals, automobiles, textiles, and food processing.
Both sides agreed to hold intersessional meetings to address pending issues ahead of the next round, proposed to be held in New Delhi in January 2026.
India-Chile talks
Meanwhile, the third round of India-Chile Comprehensive Economic Partnership Agreement (CEPA) talks, held in Santiago, Chile, from 27 to 30 October, covered a wide range of chapters, including trade in goods and services, investment promotion, rules of origin, intellectual property rights, TBT/SPS measures, economic cooperation, and critical minerals.
Both sides reaffirmed their shared commitment to an early and time-bound conclusion of the talks, which aim to enhance market access, strengthen supply-chain resilience, and deepen economic integration, it said.
India’s growing trade engagement with Peru and Chile reflects its strategic focus on building stronger partnerships with the Latin American region through mutually beneficial and comprehensive economic cooperation frameworks, the statement said.
The renewed focus on Latin America comes as the US has imposed duties of up to 50% on several categories of Indian goods, effective 27 August, impacting exports of engineering goods, textiles, chemicals, and auto components.
A Mint report published on 9 September noted that India’s push for trade pacts with Peru and Chile is a strategic move to diversify export destinations and reduce reliance on the US market. Together, the Latin American economies could absorb as much as 20% of India’s exports currently headed to the US, particularly in pharmaceuticals, textiles, engineering goods, and processed foods. The region’s rich reserves of copper, lithium, and other critical minerals also align with India’s industrial and energy security priorities.
India shipped $86.5 billion worth of goods to the US in 2024-25, accounting for 20% of its total merchandise exports of $433.56 billion. Peru, Chile, and Mexico together could absorb at least 20% of that volume, or about $17.3 billion worth of Indian goods.
New export markets
Mint first reported on 8 August that India is preparing to counter steep US tariffs by pivoting to new markets such as African and Latin American nations.
India’s trade with Latin American markets shows growing export potential, even as imports continue to outpace shipments. Exports to Peru rose from $0.92 billion in 2023-24 to $1.00 billion in 2024-25, while imports surged from $3.11 billion to $4.98 billion, highlighting a significant trade deficit, according to the commerce ministry’s data.
In Chile, Indian exports remained steady at around $1.15 billion in 2024-25, compared with $1.18 billion in 2023-24, while imports climbed sharply to $2.60 billion from $1.51 billion, indicating rising demand for Chilean goods in India.
India’s proposed trade pact with Peru aligns with a broader strategy of diversifying its export base beyond traditional markets, such as the US and the European Union, said Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI).
“Latin America offers both market opportunities and access to critical minerals, which are vital for India’s manufacturing and energy sectors. A balanced trade agreement with Peru could help Indian exporters tap new demand while also securing raw material linkages for emerging industries,” he said.