India and Chile Aim to Finalize Trade Pact by 2026: Key Details

India remains committed to finalizing a Comprehensive Economic Partnership Agreement (CEPA) with Chile by the end of this year, the Ministry of Commerce and Industry announced following high-level talks in Santiago. Commerce Secretary Rajesh Agrawal met with Chile’s Vice-Minister of International Economic Relations, Paula Estévez Weinstein, on August 26 to accelerate negotiations on the proposed trade pact.

The discussions took place amid ongoing efforts to conclude a “balanced and mutually beneficial” framework that would foster equitable and commercially meaningful outcomes for businesses in both countries. In a statement released on August 30, the Ministry reaffirmed India’s dedication to openness, sustained engagement, and a balanced approach in strengthening the India–Chile economic partnership.

India and Chile initiated CEPA negotiations in May 2025, after signing the Terms of Reference on May 8 of that year. The agreement aims to deepen trade ties by reducing tariffs, improving market access, and promoting investment across key sectors.

Trade figures released in the statement highlight the growing economic ties between the two nations. In the fiscal year 2025–26, India’s exports to Chile reached $1.2 billion, marking a 5.8% increase from the previous year. Meanwhile, imports from Chile surged to $5 billion, a 93% rise compared to 2024–25. Major trade flows include pharmaceuticals, machinery, chemicals, and agricultural products.

During the meeting, both sides underscored the shared identity of India and Chile as members of the Global South and their alignment in strategic vision as a foundation for deeper economic cooperation. They stressed the need for the CEPA to translate into tangible, commercially meaningful opportunities for businesses on both sides.

Agrawal highlighted potential areas for enhanced cooperation, including healthcare, pharmaceuticals, energy, minerals, agriculture, machinery, and engineering. Chile, a key supplier of copper and lithium, offers critical resources for India’s manufacturing and clean energy sectors. India, in turn, provides a large consumer market and expertise in pharmaceuticals and IT services.

The proposed CEPA is expected to unlock new trade and investment avenues, support supply chain resilience, and strengthen bilateral ties under the broader framework of South-South cooperation.

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