May 9, 2025
The CEPA will expand upon the existing Preferential Trade Agreement (PTA), aiming to deepen ties in digital services, MSMEs, investment, and critical minerals
Despite the growth, India continues to run a trade deficit with Chile, currently at approximately $2.5 billion
The agreement was signed by Chilean Ambassador Juan Angulo and India’s chief negotiator, Vimal Anand, from the Ministry of Commerce and Industry
India’s bilateral trade with Chile reached $3.6 billion in FY 2024–25 (as of February), double the trade value in FY 2016–17
Amid an active global trade diplomacy push, the Indian government on May 9, 2025, announced the formal launch of negotiations for a Comprehensive Economic Partnership Agreement (CEPA) with Chile, marking a step forward in strengthening economic integration with Latin America.
The terms of reference for the CEPA were signed in New Delhi by Juan Angulo, Ambassador of Chile in India, and Vimal Anand, Joint Secretary in the Ministry of Commerce and Industry, who also serves as India’s chief negotiator for the CEPA.
The CEPA is envisioned as an upgrade to the existing Preferential Trade Agreement (PTA) between the two nations and is set to cover a significantly wider array of sectors. “The CEPA aims to encompass digital services, investment promotion and cooperation, MSMEs, and critical minerals, among others — thereby enhancing economic integration and cooperation,” the government stated in an official release.
This move follows India finalising its Free Trade Agreement (FTA) with the UK and intensifying talks with other strategic partners. The CEPA with Chile reflects India’s intent to diversify and deepen its trade footprint across regions beyond its traditional partners.
Trade figures support the growing importance of this relationship. India’s bilateral trade with Chile doubled from $1.8 billion in 2016–17 to $3.6 billion in 2024–25 (as of February). However, the trade remains skewed in Chile’s favour, with India running a $2.5 billion trade deficit in the current fiscal year.
The partnership is also strategically aligned with emerging sectors. Chile’s vast reserves of critical minerals, especially lithium and copper, are important to India as it seeks to secure resources essential for its clean energy transition and electric mobility ambitions.
Beyond trade, India and Chile also strengthen cooperation in science, technology, and innovation, as evidenced by recent state-level engagements such as Karnataka’s collaboration with Chilean institutions.
As CEPA negotiations begin, both sides are expected to explore mutual gains through expanded market access, enhanced investment flows, and regulatory alignment in sectors representing global commerce’s future.
Source: The Hindu