Stabler supply chains of critical minerals on India's agenda for FTA talks with Chile, Peru

Securing supply chains of critical minerals remains a key priority in India’s Free Trade Agreement (FTA) negotiations with Chile and Peru.

Government sources said an Indian trade delegation is scheduled to visit Chile on October 27 for the third round of FTA talks, followed by Peru on November 3 for the ninth round.

For the first time, India’s potential FTAs with these countries may include a separate chapter on critical minerals. India currently imports gold from Peru, and lithium, copper, and molybdenum from Chile, and is seeking preferential rights in exploration as well as assured and stable pricing for these resources.

While Indian companies are already eligible to bid in Chile’s copper mine auctions, officials noted that India’s per capita copper consumption is less than half of developed economies and will rise substantially as the country industrialises further.

India’s push for reliable mineral access comes as Peru and Chile seek to diversify trade partners and reduce risks of overdependence on a single market—particularly China, which is paying above-market premiums to secure long-term control over copper supply chains.

Amid global geopolitical uncertainties and slowing growth in developed economies, India is looking to secure critical mineral and petroleum supply chains through trade deals across Latin America. In December 2024, government officials told CNBC-TV18 that India also seeks duty concessions for engineering goods and other exports to Latin American markets, leveraging shorter freight distances thanks to China’s new Pacific port in Peru.

Peru had earlier indicated plans to conclude a trade pact with India by 2025, with eight negotiation rounds already completed. Meanwhile, India and Chile launched FTA negotiations in May 2025 to expand an existing Preferential Trade Agreement (PTA).