India-Chile Bilateral and Trade Relations in 2025

India-Chile are set to commence the first round of talks on a Comprehensive Economic Partnership Agreement (CEPA) in New Delhi from May 26 to 30, 2025, marking a major leap in enhancing bilateral trade and investment ties.

India Briefing reviews India-Chile bilateral and trade relations in 2025.

On May 8, 2025, representatives from India and Chile formalized the Terms of Reference (ToR) for the CEPA, with the document being signed by Juan Angulo, the Chilean ambassador to India, and Vimal Anand, joint secretary in the Department of Commerce and the chief Indian negotiator for the CEPA discussions.

India and Chile set to begin CEPA negotiations

India and Chile have formally agreed to commence negotiations for the CEPA in May 2025, aiming to strengthen bilateral trade and investment ties. 

During Chilean President Gabriel Boric Font’s state visit to India from April 1 to 5, 2025, both countries reaffirmed their commitment to deepening their trade relationship. Chile is increasingly seen by India as a strategic partner offering significant opportunities in areas like critical minerals, agriculture, digital public infrastructure, railways, and space exploration. 

Through the CEPA, Chile will seek to boost its agricultural exports to India while also expanding its industrial base and attracting more Indian investments. Key sectors where Chile is inviting Indian participation include ports, infrastructure, and renewable energy.

The CEPA discussions represent a timely and strategic opportunity to strengthen India–Chile economic cooperation. With India’s focus on electric mobility and Chile’s mineral capabilities, there is significant potential for integrated EV battery value chains. – Ankur Munjal, Country Director – Dezan Shira & Associates, India.

The India-Chile CEPA intends to expand upon the current Preferential Trade Agreement (PTA). This agreement targets a broader spectrum of areas such as digital services, investment collaboration, support for micro, small, and medium-sized enterprises (MSMEs), and critical minerals, thereby promoting deeper economic engagement.

Focus on the critical minerals sector

One of the primary areas of focus in these discussions is the critical minerals sector, leveraging Chile’s status as a major global producer. Chile accounts for about 24 percent of the world’s copper output and makes up approximately 30 percent of the global lithium market, making it a critical partner for India’s rapidly growing industries.

Lithium, in particular, is a crucial component in batteries for electric vehicles (EVs) and other advanced technologies. Both countries are exploring opportunities for closer collaboration in this sector, including potential Indian investments in Chilean mining and value-added processing before the minerals are exported.

Chile’s mining industry is a major contributor to its economy, accounting for roughly 13 percent of its GDP. To strengthen this partnership, India and Chile have signed a Memorandum of Understanding (MoU) to explore deeper collaboration in the critical minerals sector, which is expected to be a key element of the upcoming CEPA negotiations.

Facilitating India-Chile CEPA negotiations

On April 3, 2025, the Bombay Chamber of Commerce & Industry (Bombay Chamber) and the Chilean Federation of Industry (SOFOFA) signed an MoU aimed at enhancing economic cooperation between India and Chile.

A key focus of the MoU is to provide strategic support for the ongoing negotiations for the CEPA. Both organizations have committed to offering technical insights and industry perspectives to their respective governments, with the goal of shaping a mutually beneficial trade framework that reflects the interests of businesses in both countries.

Once the CEPA is finalized, the Bombay Chamber and SOFOFA plan to work together to ensure its effective implementation. This collaboration will involve identifying emerging business opportunities, promoting private sector participation, and organizing trade missions, industry briefings, and sector-specific initiatives to maximize the agreement’s impact on both economies.

India’s trade ties with Latin American countries

India and Chile share a steadily growing trade relationship, reflecting the broader trend of increasing economic engagement between India and Latin America. Chile ranks as the second-largest trading partner for India in the Latin American region.

Source: Department of Commerce, Ministry of Commerce and Industry, GoI

In the FY 2023-24, bilateral trade between India and Chile reached approximately US$2.45 billion, with India exporting US$1.1 billion worth of goods to Chile and importing US$1.35 billion. This reflects a trade deficit of about US$255 million for India, indicating a relatively balanced but growing trade partnership compared to other Latin American countries.

India-Chile trade trends and key commodities

India’s exports to Chile presents a mixed growth trajectory in recent years. After a substantial 46.8 percent rise in FY 2021-22, exports saw a slight decline in FY 2022-23, followed by a modest recovery of 1.42 percent in FY 2024-25, reaching US$1.18 billion.

Source: Department of Commerce, Ministry of Commerce and Industry, GoI.

India’s exports to Chile are diverse, including a wide range of products such as motor vehicles, chemicals, iron and steel products, man-made yarn, cotton fabrics, readymade garments, auto components, and electrical machinery, among others.

Source: Department of Commerce, Ministry of Commerce and Industry, GoI

Meanwhile, India’s imports from Chile have seen robust growth, driven primarily by the critical minerals sector. Between April 2024 and February 2025, India’s imports from Chile reached US$1.51 billion, a 5.45 percent increase from FY 2023-24.

Source: Department of Commerce, Ministry of Commerce and Industry, GoI

India-Chile PTA

The India-Chile PTA, which came into force in 2017, broadened the scope of tariff concessions between the two countries. Under the revised PTA, the two countries will grant concessions on the following commodities:

• Chile’s concessions to India: Chile provides duty rebates on 1,798 goods, including agricultural items, chemicals, pharmaceuticals, textiles, apparel, iron and steel products, copper machinery, and rubber.
• India’s concessions to Chile: India offers reduced tariffs on 1,031 products, covering meat, fish, vegetable oil, processed foods, pharmaceuticals, pearls, rock salt, copper ore, leather, paper, and select industrial goods.

Prior to this expansion, Chile offered duty reductions on just 296 items to India, while India extended similar benefits to 178 Chilean products, highlighting the enhancement in trade access achieved through this agreement.

India-Chile DTAA

The Double Taxation Avoidance Agreement (DTAA) between India and Chile was signed on March 9, 2020, and came into effect on October 19, 2022, following ratification by both countries. In India, the provisions of this agreement apply to income derived in any fiscal year beginning on or after April 1, following the date the agreement entered into force, that is, October 19, 2022.

Source: India Briefing

Indian business presence in Chile

As of 2024, approximately 24 Indian companies have established representative offices in Chile. According to the Foreign Investment Committee of Chile, India invested approximately US$27.1 million in Chile between 1974 and 2012, primarily in the mining and IT sectors.

This presence has expanded substantially, with Indian firms increasingly entering the Chilean market through acquisitions, joint ventures, and strategic collaborations. Key players include Jindal Steel Works, TCS, Oracle Financial Services, Polaris, Evaluserve, Wipro, Godrej, Ashok Leyland, Tega Industries, Havells Sylvania, Tata Motors, Bajaj Auto, Maruti Suzuki, Mahindra & Mahindra, and NSL Renewable Power Private Limited.

Exploring new sectors for collaboration

Both countries are increasingly exploring new areas for collaboration beyond traditional sectors. This includes agriculture, digital services, pharmaceuticals, and automobiles, reflecting the evolving nature of their economic partnership and the growing importance of high-value, technology-driven industries.

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Indian trade and business organizations have been actively engaging with their Chilean counterparts, creating opportunities for deeper commercial ties. For instance, in August 2023, a high-level Chilean business delegation led by Sebastián Gómez Fiedler, director general of bilateral economic affairs at Chile’s Ministry of Foreign Affairs, participated in a major business conclave in New Delhi.

Additionally, in April 2024, an Indian mining delegation headed by the secretary of the Ministry of Mines visited Chile to participate in the World Mining Congress and the CRU World Copper Conference.

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