India’s proposed free trade agreement with Peru is unlikely to be concluded “soon”, Commerce and Industry Minister Piyush Goyal said on Saturday, even as bilateral trade between the two countries surged 67.5% to $10 billion in 2025-26.
Speaking to reporters on the sidelines of the 17th Toy Biz International B2B Exhibition, Goyal said New Delhi still has concerns over market access in certain products.
“There are certain concerns. There are many products where we cannot offer them market access. I do not see the Peru FTA happening very soon,” Goyal said, according to PTI.
The proposed India-Peru trade agreement has been under negotiation since 2017. The talks had gained fresh momentum last year, with the ninth round held in Lima from November 3-5, 2025. According to the Commerce Ministry, discussions then covered trade in goods and services, rules of origin, technical barriers to trade, customs procedures, dispute settlement and critical minerals.
Gold problem in Peru trade
The caution comes despite a sharp rise in trade. India-Peru bilateral trade rose to $10 billion in FY26 from $5.98 billion in FY25. India’s exports to Peru stood at $1.4 billion, while imports were much higher at $8.87 billion, leaving India with a trade deficit of $7.47 billion.
The trade basket explains the problem. India mainly exports motor vehicles, cotton yarn and pharmaceuticals to Peru. Its imports are dominated by gold, copper ores and concentrates.
Gold is the most sensitive part of the proposed agreement. According to experts cited by PTI, duty concessions on gold could be among the toughest issues for India, as the metal accounts for nearly 90% of India’s imports from Peru.
In FY26, India’s gold imports from Peru rose 78.45% to $7.9 billion from $4.43 billion in FY25. Any tariff concession on such a large import item could widen the trade deficit further, making it difficult for New Delhi to offer market access without safeguards.
Peru is also important for India’s critical minerals strategy. The Commerce Ministry had earlier said critical minerals formed part of the India-Peru trade talks, underlining Peru’s relevance as a supplier of minerals and raw materials. However, Goyal’s remarks suggest that India is not willing to rush into a pact merely because trade volumes have risen.
Canada pact may move faster
Goyal, however, sounded more positive on the proposed India-Canada Comprehensive Economic Partnership Agreement.
“The Canada FTA is progressing well… our team is going on Monday for the next round of negotiations. We are trying to conclude it in the next six months or so,” he told PTI.
India and Canada concluded the second round of CEPA negotiations in New Delhi on May 8. The two sides are targeting bilateral trade of $50 billion by 2030. In FY26, goods trade between India and Canada stood at $7.95 billion, down 8.22% from $8.7 billion in FY25.
India’s key exports to Canada include pharmaceuticals, iron and steel, seafood, cotton garments, electronic goods and chemicals. Imports include pulses, pearls and semi-precious stones, coal, fertiliser, paper and petroleum crude.
Canada is also a major market for Indian students and services exports. India’s services exports to Canada include telecom, computer and information services, and other business services.