The recent visit of Chile’s Minister of Foreign Affairs, Alberto van Klaveren, to India from August 27-31 has marked a significant milestone in the evolving partnership between the two nations. At the invitation of India’s External Affairs Minister S Jaishankar, the visit provided a platform for reviewing bilateral cooperation and advancing ties across various sectors, including trade, agriculture, and critical minerals like lithium and copper.
Outcomes of the visit
Comprehensive Economic Partnership Agreement (CEPA) on the Horizon
One of the central discussions during van Klaveren’s visit was the potential for a Comprehensive Economic Partnership Agreement (CEPA) between India and Chile. In a meeting with Commerce and Industry Minister Piyush Goyal, both sides underlined the importance of deepening and diversifying their economic relations. van Klaveren expressed Chile’s strong interest in advancing towards a CEPA with India, noting that preliminary studies and analyses have been conducted. While the negotiations are expected to take time, there is optimism that a CEPA could significantly boost bilateral trade and investment by addressing market access issues and enhancing cooperation in emerging sectors.
Boosting Trade in Agriculture
Agriculture remains a key area of cooperation between India and Chile. During the visit, discussions focused on expanding the trade of agricultural products. Chile, known for its rich agricultural exports, sees India as a promising market for its products, particularly nuts, wines, and fruits. The two countries are working to address sanitary and phytosanitary (SPS) concerns to facilitate smoother trade. Chile has also shown interest in importing Indian bananas, basmati rice, and mangoes. Additionally, India is exploring opportunities to export products such as roses, garlic, and kidney beans to Chile, aiming to diversify and enhance bilateral agricultural trade.
Cooperation in Critical Minerals: Lithium and Copper
Chile’s vast reserves of critical minerals, especially lithium and copper, are of significant interest to India. These minerals are crucial for India’s growing focus on electromobility and the manufacturing of electric vehicles (EVs). According to an official statement issued by the Ministry of External Affairs, during the Joint Commission Meeting (JCM), van Klaveren highlighted Chile’s national strategy for lithium, which was adopted last year, and invited Indian companies to participate in tenders for new lithium deposits. The collaboration in the lithium sector is expected to play a vital role in supporting India’s green energy initiatives.
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Similarly, copper, another critical mineral, is seen as a promising area for bilateral cooperation. Chile’s extensive copper deposits offer opportunities for Indian investments, which could contribute to the expanding demand for copper in India’s infrastructure and manufacturing sectors. The possibility of Indian companies participating in Chilean tenders for copper mining was also discussed, signalling a new chapter in the economic partnership between the two countries.
Expanding India’s Presence in Chile’s Pharmaceutical Market
Another important aspect of the bilateral discussions was the potential expansion of India’s presence in Chile’s pharmaceutical market. India is a leading global exporter of pharmaceutical products, and there is a growing demand for Indian medicines in Chile. The discussions included the possibility of joint ventures between Indian and Chilean companies in the pharmaceutical sector, which could further strengthen India’s foothold in the Chilean market. Such collaborations could also lead to the development of innovative healthcare solutions tailored to the needs of both countries.
A Strategic Partnership with a Promising Future
As India and Chile continue to explore new areas of collaboration, including defence and technology, the potential for mutual growth and prosperity becomes increasingly evident. FinancialExpress.com has reported previously that several Indian companies have registered themselves with Chilean Armed Forces. These include M/s Brahmos; M/s Azista Industries; M/s Goa Shipyard Ltd among others have registered themselves with the Chilean forces.
It has been reported previously, MKU Limited, a global defence and homeland security company based in India with operations in Germany and UAE, showcased its cutting-edge solutions at the International Air and Space Fair, FIDAE 2024 in April this year. It was the only company from India to be present at FIDAE 2024 which kept the Indian flag flying high.
The strategic partnership between these two vibrant economies is set to play a pivotal role in shaping the economic landscape of the Indo-Pacific and Latin American regions in the years to come.