SDG 8: Decent Work & Economic Growth | SDG 17: Partnerships for the Goals
Institutions: Ministry of Commerce & Industry | Ministry of External Affairs
The Ministry of Commerce & Industry successfully concluded two key rounds of trade negotiations with partner countries in the Latin American region, demonstrating India’s strategic focus on expanding economic cooperation and strengthening supply chain resilience.
This trade push aims to create new opportunities in vital sectors such as critical minerals, pharmaceuticals, automobiles, textiles, and food processing.
Key Negotiation Milestones:
India–Peru Trade Agreement: The 9th Round of negotiations was held in Lima, Peru (Nov 3-5, 2025). The discussions yielded substantive progress across key chapters, including Trade in Goods and Services, Rules of Origin, Customs Procedures, and Critical Minerals. The next round is proposed to be held in New Delhi in January 2026.
India–Chile Comprehensive Economic Partnership Agreement (CEPA): The 3rd Round of negotiations took place in Santiago, Chile (Oct 27-30, 2025). Discussions covered a wide range of chapters, including Trade in Goods and Services, Investment Promotion, Rules of Origin, Intellectual Property Rights, and Critical Minerals.
Both countries reaffirmed their commitment to the early and time-bound conclusion of the negotiations, which aim to enhance market access and deepen economic integration.
This diplomatic trade offensive is highly significant as it directly executes the policy of diversifying India’s trade away from traditional partners and establishing stronger links with the Global South. By simultaneously pursuing a comprehensive trade agreement with Peru and deepening the existing partnership with Chile (CEPA), the government is using a multi-pronged approach to secure long-term access to key resources and markets.
What is CEPA?→ A Comprehensive Economic Partnership Agreement (CEPA) is a trade pact that covers goods, services, investment and regulatory frameworks to deepen economic integration between partner countries.
What are ‘Critical Minerals’?→ In the context of these trade negotiations, Critical Minerals refer to elements essential for modern high-tech industries, green energy transition, and national defense (e.g., lithium, cobalt, rare earth elements). Including them explicitly in the agreements signals India’s strategic priority to secure resilient supply chains for its energy security and advanced manufacturing sectors, such as electric vehicles and electronics.
Relevant Question for Policy Stakeholders:
What fiscal or regulatory incentives will the government implement to ensure domestic manufacturers rapidly translate these new trade agreements into increased exports and resilient supply chains?
Follow the full news here: India Deepens Trade Engagement with Latin America