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Negotiations between India, Chile on proposed FTA close to completion

29 Jan 2026 Evaluate

The negotiations between India and the South American nation Chile, on the proposed comprehensive free trade agreement (FTA) are close to completion. The pact with the South American nation may help India access critical minerals, which are key inputs for electronics, auto, and solar sectors.

The two countries implemented a preferential trade agreement (PTA) in 2006 and are now negotiating to widen its scope for a comprehensive economic partnership agreement (CEPA). CEPA aims to build upon the existing PTA between the two nations and seeks to encompass a broader range of sectors, including digital services, investment promotion and cooperation, MSMEs (micro, small, and medium enterprises), and critical minerals.

The bilateral trade between India and Chile is modest. In 2024-25, India's exports to Chile were down 2.46 per cent to just $1.15 billion. Imports, however, grew 72 per cent to $2.60 billion. The review of FTA in goods with the 10-nation Southeast Asian bloc, Asean, is on and is taking a shape.  


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