India is in talks with at least two South American countries for a comprehensive trade agreement as it moves away from focusing on the US, which slapped high tariffs of 50 per cent on India late August.
In a special interview, Chile’s Ambassador to India, Juan Angulo, said India and Chile are looking to conclude negotiations for a Comprehensive Economic Partnership Agreement (CEPA) by the end of 2025, with talks of critical minerals taking centre stage.
Chile possesses the world’s largest lithium reserves at 9.3 million metric tonnes, representing nearly 38 per cent of global totals. It produced 44,000 metric tonnes of lithium in 2024, and also holds the largest copper reserves (190 million metric tonnes) as well as significant deposits of iodine, rhenium and molybdenum.
“We know there’s a need for India to fulfil its security in these kind of raw materials. Chile is a country that can not only provide that, but also other minerals,” Angulo said, adding that “the minerals chapter is a part of the negotiations”.
The CEPA aims to eliminate tariffs on over 90 per cent of goods and deepen services and investment ties. While three rounds of negotiations have been completed between India and Chile, with the latest held in Santiago from October 27-30, the fourth round of talks will be held in November.
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Talks have so far covered trade in goods and services, investment, rules of origin, intellectual property rights, TBT/SPS measures, economic cooperation and critical minerals.
“We have been looking at how we could increase the added value of exports to the country,” the ambassador said.
Chile’s lithium production is led by SQM and Albemarle in the Atacama region, with new public-private projects expected to increase output by 70 per cent by 2028. Indian entity Khanij Bidesh India Ltd (KABIL) is exploring joint ventures in the country.
“We are looking forward to the conclusion of the negotiation process. We hope it will be a solution acceptable for both parties,” Angulo said.
In a separate interview, Argentine ambassador to India, Mariano A. Caucino stated that India’s investment in the northern part of Argentina for Lithium is “very positive and mutually beneficial for both countries”.
“India is growing so much that it demands more and more critical minerals, lithium, especially, and the government of India is trying not to depend on a sole provider, which I think is very wise for you,” the Argentine ambassador said.
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