India eyes Latin America FTAs despite China risk
“As part of this expanded outreach, India is pursuing Free Trade Agreements (FTAs) with Peru, Chile, and the Mercosur bloc, even as China deepens its economic footprint across Latin America. These agreements are intended to secure India’s access to critical minerals and new export markets while limiting the risks posed by third-country dumping — an issue that has plagued India’s previous FTAs. The cautious approach reflects lessons from the ASEAN agreement and underlines India’s intent to ensure that future trade pacts serve both strategic and economic interests.”
“India’s trade with Latin America remains modest but is gaining traction. In FY25, Latin America accounted for 3.5% of India’s total exports, valued at $15.17 billion. The region’s key partners include Brazil, Mexico, Chile, and Peru. India’s exports—primarily pharmaceuticals, textiles, chemicals, and automobiles—are complemented by imports of copper from Peru, lithium from Chile, agricultural commodities, and petroleum.”
“The experience with ASEAN and UAE has made the government doubly cautious. It will likely insist on robust verification mechanisms and tighter customs protocols before agreeing to any comprehensive trade arrangement.”
Source: Policy Circle