Published: 4 November 2025DD NewsEconomy
India Makes Substantive Progress in FTA Negotiations with Peru and Chile
India reported 'substantive progress' in Free Trade Agreement negotiations with Peru and Chile during the October 27 to November 5, 2025, round of talks. India-Peru FTA talks, launched in 2017, completed their 9th round, while India-Chile CEPA negotiations, initiated in April 2025, completed their 4th round.
The FTAs target cooperation in critical minerals, automobiles, pharmaceuticals, textiles, and food processing. These negotiations are part of India's trade diversification strategy, especially significant after US tariff hikes of 50% on Indian exports imposed in August 2025. India is simultaneously negotiating FTAs with 6 countries including Australia, Sri Lanka, Peru, Chile, Israel, and the EU.
0Mains angle
Q: Analyse the strategic significance of India's Free Trade Agreement negotiations with Peru and Chile in the context of trade diversification after recent US tariff hikes.
Answer (50 words):
India completed the 9th round with Peru and 4th round with Chile during October 27–November 5, 2025, targeting critical minerals, pharmaceuticals, textiles, and automobiles. Following the 50% US tariff hike of August 2025, these Latin American pacts diversify export markets and secure strategic mineral supply chains for India's clean-energy transition.
6-axis classification
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Practice MCQ from this story
SolveTap an option below. Correct or incorrect feedback appears instantly.
Linked questionMedium
India's services trade surplus in Q1 FY26 rose to how much?
Explanation · Correct answer BServices trade surplus rose to USD 47.9 billion in Q1 FY26 from USD 39.7 billion a year ago.
Frequently asked questions
During which round of talks did India report progress with Peru and Chile?
India reported 'substantive progress' in Free Trade Agreement negotiations with Peru and Chile during the October 27 to November 5, 2025, round of talks.
Which negotiation rounds were completed for the Peru FTA and Chile CEPA?
India-Peru FTA talks, launched in 2017, completed their 9th round. India-Chile CEPA negotiations, initiated in April 2025, completed their 4th round.
Which sectors are targeted in the Peru and Chile trade negotiations?
The FTAs target cooperation in critical minerals, automobiles, pharmaceuticals, textiles, and food processing.
Why are these FTA talks part of India's trade diversification strategy?
The negotiations are part of India's trade diversification strategy, especially after US tariff hikes of 50% on Indian exports imposed in August 2025. India is simultaneously negotiating FTAs with 6 countries including Australia, Sri Lanka, Peru, Chile, Israel, and the EU.
