India, Chile to upgrade trade pact, expand ties in mineral exploration
India and Chile are set to upgrade their trade pact to a Comprehensive Economic Partnership Agreement (CEPA), expanding economic cooperation, particularly in lithium and copper — two critical minerals essential for electric technologies.
Chile, a global leader in lithium and copper production, is poised to become a key supplier for India’s growing energy and technology sectors.
The decision was announced following a bilateral meeting between Prime Minister Narendra Modi and Chilean President Gabriel Boric Font in New Delhi on Tuesday.
P Kumaran, Secretary (East) in the Ministry of External Affairs, confirmed that lithium and copper were part of the discussions, but emphasised that the CEPA would cover a broad range of sectors beyond minerals. This will be India’s first such agreement with a Latin American country, transitioning the existing preferential trade agreement into a full free trade deal.
“Leaders of both countries have given the nod to our officials to resume negotiations for the trade deal as part of CEPA,” Modi said in a joint press statement. He also highlighted potential collaborations in critical minerals, agriculture, digital infrastructure, railways and space.
India sees Chile as a gateway to Antarctica and aims to boost bilateral trade, which currently stands at $45 billion with Latin America, toward an ambitious $100 billion in the coming years.
Font arrived in New Delhi on a five-day state visit and paid tribute to Mahatma Gandhi at Rajghat. He also met External Affairs Minister S Jaishankar, who reaffirmed India’s commitment to deepening ties with Chile.
During his visit, Boric will engage with top Indian leaders, including a luncheon hosted by Modi and a banquet by President Droupadi Murmu. He will also visit Mumbai and Bengaluru, meeting political leaders, business representatives and startups to explore trade, investment and technology collaborations.
India and Chile share a longstanding diplomatic relationship, with Chile being the only Latin American country to send a special envoy to India’s Independence Day celebrations in 1947.
