India and Peru will resume negotiations on a proposed free trade agreement (FTA) in early November, following a pause of more than 18 months. Before that, a team of Indian negotiators will hold the second round of talks with Chile under the India-Chile Comprehensive Economic Partnership Agreement (CEPA). The five-day talks will begin on October 27 in Santiago. The FTA talks with Peru will be held from November 3 to 5 in Lima.
CEPA with Chile: Broadening Cooperation Beyond Trade
The CEPA terms of reference were signed on May 8 this year, and the first round took place on May 26. The agreement builds on a Preferential Trade Agreement (PTA) signed between India and Chile in January 2025. The CEPA aims to broaden cooperation to cover digital services, investment promotion, micro, small and medium enterprises (MSMEs), and access to critical minerals.
The upcoming meeting in Lima will mark the eighth round of FTA talks between India and Peru. The last round was held in New Delhi in April 2024.
Peru vs. Chile: Decoding India’s Trade Balance
Peru is a larger trading partner for India than Chile in terms of total trade volume. In the 2024/25 financial year, India’s exports to Peru stood at $1.02 billion, while imports reached $4.98 billion. Exports to Chile were slightly higher at $1.15 billion, but imports were lower at $2.60 billion.
Peru is a larger trade partner for India than Chile in value terms. In FY2024–25, India’s exports to Peru stood at $1.02 billion, while imports reached $4.98 billion. By comparison, exports to Chile were slightly higher at $1.15 billion, while imports totalled $2.60 billion.
India’s main exports to Peru include automobiles, motorcycles, three-wheelers, polyester and cotton yarns, pharmaceuticals, iron and steel products, plastic goods, rubber products, tyres, and pipes for the oil and gas industry. Key imports from Peru are gold, copper, synthetic filaments, calcium phosphates, fresh grapes, and fish flour.
Exports to Chile consist of motor vehicles, drug formulations, chemicals, iron and steel products, man-made yarn and fabrics, auto components, electrical machinery, leather goods, rubber products, bulk drugs, drug intermediates, footwear, aluminium products, and ceramics. Imports from Chile include metal ores, fruits, iron and steel, copper, and various chemicals.