In a significant step toward strengthening bilateral trade relations, India and Chile have agreed to initiate talks on a Comprehensive Economic Partnership Agreement (CEPA), with a strong emphasis on critical minerals. The announcement was made by Prime Minister Narendra Modi on Tuesday during a joint press briefing with Chilean President Gabriel Boric Font in New Delhi.
A Strategic Move for Global Supply Chains
Chile, a global leader in lithium and copper production, holds the key to the electric vehicle (EV) revolution and renewable energy development. Recognizing the strategic importance of these minerals, Union Minister of Coal and Mines G Kishan Reddy and Chile’s Minister of Mining Aurora Williams met to explore new avenues for collaboration in the mining sector.
“Today, we have instructed our teams to begin discussions on a mutually beneficial Comprehensive Economic Partnership Agreement (CEPA). Partnership in the field of critical minerals will be emphasized, and we will work toward building resilient supply and value chains,” PM Modi stated.
India’s Growing Interest in Critical Minerals
India, which has ambitious plans for green energy transition, seeks a steady and secure supply of critical minerals. The National Critical Minerals Mission (NCMM), approved recently, underscores India’s commitment to securing lithium and copper for its growing EV and electronics manufacturing sectors.
At a roundtable discussion, Minister Reddy emphasized that Indian companies are eager to invest in Greenfield and Brownfield mining projects in Chile, fostering stronger government-to-government (G2G) and business-to-business (B2B) partnerships.
India-Chile Trade Relations on the Rise
Chile stands as India’s fifth-largest trading partner in South America, with bilateral trade witnessing a remarkable surge from $1.5 billion in 2020 to $3.8 billion in 2024, according to the Ministry of External Affairs (MEA).
Key Trade Facts:
- India’s exports to Chile: Automobiles, pharmaceuticals, and textiles.
- Chile’s exports to India: Copper ores, unrefined copper, molybdenum ores, and copper scrap.
- Trade impact: India’s lithium-ion battery industry is still in its early stages, and no lithium is currently imported from Chile, presenting a significant opportunity for future trade expansion.
Strengthening Bilateral Agreements
The CEPA talks build upon the 2016 expansion of the India-Chile Preferential Trade Agreement (PTA), which extended tariff concessions from 474 to 2,829 tariff lines. The new negotiations aim to enhance cooperation in mining, clean energy, and digital technology.
Chile’s Vision for Deeper Cooperation
President Gabriel Boric Font, who is on a state visit to India from April 1 to April 5, highlighted Chile’s interest in fostering stronger economic ties. He emphasized Chile’s commitment to becoming a trusted partner for sustainable technology and innovation and expressed enthusiasm for deeper collaboration in health, renewable energy, and cultural exchanges.
“We see India as a key ally in our journey toward sustainable development and technological progress. Our discussions today have laid the groundwork for expanding trade, investment, and strategic cooperation,” President Boric noted.
Cultural and Scientific Collaboration
Beyond trade, the two nations exchanged agreements for:
- Disaster management collaboration
- Cultural exchange programs
- Letters of Intent on Antarctic research cooperation
Bolstering Film Industry and Traditional Medicine
India’s Bollywood film industry has captured global audiences, and Chile is eager to explore collaboration through its ‘Shoot in Chile’ initiative. Additionally, the recognition of Yoga as a lifestyle practice in Chile, with November 4 officially declared as National Yoga Day, further cements the cultural bridge between the two nations.
Looking Ahead: A Promising Partnership
As Chile continues to serve as a gateway to Antarctica, President Boric has invited PM Modi to visit and explore future scientific collaborations. The Chilean leader has also scheduled meetings in Mumbai and Bengaluru with business leaders, startups, and policymakers to strengthen economic and innovation-driven ties.
India and Chile’s CEPA negotiations mark the beginning of a new era in bilateral relations, with both nations poised to benefit from enhanced trade, secure critical mineral supplies, and deepened strategic cooperation.
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