Saturday, 13 Dec, 2025
Chile ranks as India’s fifth-largest trading partner in the Latin America and Caribbean region. Image Source: FreePix
India also asked Chile to explore the possibility of long-term supply agreements for critical mineral resources, reflecting India’s growing emphasis on securing essential inputs for its manufacturing and clean energy sectors.
India and Chile have completed the fourth round of negotiations for the India–Chile Comprehensive Economic Partnership Agreement in New Delhi, marking another step toward an expanded and modernised trade partnership. According to the Ministry of Commerce and Industry, both delegations engaged in a week-long, intensive dialogue that resulted in notable progress across several chapters under discussion. The two sides reaffirmed their commitment to concluding the CEPA negotiations within a reasonable timeframe, recognising the agreement’s importance in advancing bilateral economic relations.
They agreed that the CEPA, once finalised, would help increase bilateral trade volumes, deepen economic cooperation, provide greater market access, and open new opportunities for businesses in both countries. The fourth round followed three earlier rounds of negotiations, including the previous one held in Santiago from October 27 to 30, where negotiators discussed a wide range of areas such as trade in goods and services, investment promotion, rules of origin, intellectual property, technical barriers to trade, sanitary and phytosanitary measures, economic cooperation, and critical minerals.
During the New Delhi engagements, Chile’s Treasury Undersecretary in the Ministry of Foreign Affairs, Claudia Sanhueza, met with India’s Commerce Minister Piyush Goyal to review the progress and discuss the way forward. The broader diplomatic context has also been positive. Just last month, India and Chile held their ninth Foreign Office Consultations in Santiago, where they agreed to enhance collaboration across numerous sectors, including trade and investment, health and pharmaceuticals, traditional medicine, science and technology, mining and mineral exploration, defence, civil nuclear cooperation, education, space, agriculture, and people-to-people exchanges.
India also asked Chile to explore the possibility of long-term supply agreements for critical mineral resources, reflecting India’s growing emphasis on securing essential inputs for its manufacturing and clean energy sectors. Both sides further agreed to diversify their partnership into new and emerging areas such as digital public infrastructure, innovation, and green energy, signalling a shared intention to modernise their economic engagement in line with contemporary global priorities.
Source: Chile Customs Agency
Chile ranks as India’s fifth-largest trading partner in the Latin America and Caribbean region. India’s exports to Chile have generally risen since 2009, except for a dip in 2014, when Chile’s introduction of a carbon tax on diesel vehicles temporarily reduced India’s motor vehicle shipments. The sector, however, rebounded strongly in the following years. Bilateral trade experienced a brief period of decline due to the global economic slowdown and Chile’s domestic social unrest and labour disruptions. Since then, trade flows have recovered and demonstrated solid growth.
During the President of Chile, Gabriel Boric’s state visit to India in April 2025, he emphasised that India holds a key place in Chile’s economic priorities and highlighted the importance of identifying new avenues to expand and diversify bilateral trade. Both he and Prime Minister Modi noted the signing of the agreed Terms of Reference and welcomed the launch of negotiations for a Comprehensive Economic Partnership Agreement aimed at creating a balanced, ambitious, and mutually beneficial framework for deeper economic integration. In a move to further strengthen commercial ties and ease mobility, President Boric announced that Chile would introduce a Multiple Entry Permit for Indian business travellers, simplifying visa procedures and encouraging greater engagement.
Prime Minister Modi appreciated this step, viewing it as a clear signal of both countries’ intent to promote trade, investment, and closer bilateral cooperation. Recognising that people-to-people exchanges are central to enhancing economic, cultural, academic, and tourism-related interactions, India has already implemented a liberalised visa system, including the provision of e-visas for Chilean visitors.
India and Chile signed the Terms of Reference for a Comprehensive Economic Partnership Agreement on 8 May 2025, marking an important step forward in their evolving trade relationship. Over the years, the two countries have reinforced their partnership through regular high-level exchanges. Their economic engagement began with the Framework Agreement on Economic Cooperation in January 2005, which was followed by a Preferential Trade Agreement in March 2006. Since then, bilateral economic and commercial ties have remained strong and have continued to expand.
