World
India
India and Chile have announced the beginning of negotiations for a Comprehensive Economic Partnership Agreement (CEPA), aiming to strengthen bilateral trade and cooperation in defence, technology, and critical minerals. The decision was made following discussions between Indian Prime Minister Narendra Modi and Chilean President Gabriel Boric in New Delhi on Tuesday.
This new trade agreement will build upon the Preferential Trade Agreement (PTA) that India signed with Chile in 2017. As part of New Delhi’s broader engagement with South America, this move reinforces India’s growing diplomatic and economic presence in the region.
India Sees Chile as a Key Partner in Latin America
Addressing the media, Modi called Chile a “valued friend and partner country” and emphasized the untapped trade potential between the two nations. “Today, we have instructed our teams to initiate discussions on a mutually beneficial CEPA,” he said in Hindi.
President Boric echoed similar sentiments, recognizing India as a priority partner in the global economy. Highlighting Chile’s vast natural resources, including lithium and copper, he stated that the CEPA will foster economic collaboration during a time of global uncertainties. “We are going to have a CEPA and work together in a collaborative manner to strengthen our mutual benefits,” Boric said.
Bilateral Trade and Economic Opportunities
In 2022-23, trade between India and Chile reached $2.6 billion, with India’s exports accounting for $1.16 billion. Currently, India ranks ninth among Chile’s export partners.
Both leaders identified several priority areas for future collaboration, including:
-
Critical minerals – Enhancing supply chain resilience and value chains.
-
Agriculture and food security – Leveraging each other’s strengths for sustainable agricultural cooperation.
-
Digital infrastructure and renewable energy – Sharing India’s expertise in these sectors.
-
Railways and space cooperation – Expanding scientific and technological collaboration.
Additionally, Modi highlighted Chile’s strategic location, calling it the “gateway to Antarctica.” The two nations signed a letter of intent for Antarctic cooperation, strengthening their research collaboration in the region.
Strengthening Defence and Security Ties
Both countries will also deepen defence cooperation, focusing on industrial collaboration and capacity building. A joint statement confirmed that defence agencies will share expertise under an existing formal defence cooperation agreement.
“Increasing cooperation in defence is a symbol of our deep mutual trust. We will move forward to create defence industrial manufacturing and supply chains as per each other’s needs,” Modi said.
Security cooperation will also extend to tackling organized crime, drug trafficking, and terrorism, with both sides committing to increased intelligence sharing and law enforcement collaboration.
New Agreements and Investment Opportunities
During the visit, several agreements were signed, including:
-
A memorandum of understanding (MoU) between Hindustan Copper and Chile’s National Copper Corporation (Codelco) to boost cooperation in the copper sector.
-
Collaboration in disaster management and cultural exchanges, reinforcing bilateral ties.
-
Private sector facilitation in pharmaceuticals and medical devices, aiming to enhance trade in vaccines and medicines.
A Historic Visit with Long-Term Implications
President Boric’s visit marks the first Chilean head of state visit to India in 16 years. He extended an invitation to Modi to visit Antarctica, acknowledging India’s long-standing research presence in the region since 1989.
Boric also expressed Chile’s support for India’s bid for permanent membership in a reformed UN Security Council, aligning with India’s push for global governance reforms.
Looking ahead, both nations are set to accelerate collaboration in critical minerals exploration and processing, focusing on securing long-term partnerships in the mining sector. They also committed to developing trusted and resilient supply chains for critical minerals and advanced materials.
With Boric’s five-day visit continuing to Mumbai, Agra, and Bengaluru, India and Chile are expected to explore new business opportunities and further deepen bilateral relations.
ALSO READ:
