India, Chile eye deeper economic ties, critical minerals in focus

“Today, we have instructed our teams to begin discussions on a mutually beneficial Comprehensive Economic Partnership Agreement. Partnership in the field of Critical Minerals will be emphasised. Work will be done to establish resilient supply and value chains,” PM Modi said at the briefing.

“India is ready to share its positive experience with Chile in digital public infrastructure, renewable energy, railways, space and other areas,” he added.

President Boric is on a state visit to India from April 1 to 5, during which he will meet industry leaders in Mumbai and Bengaluru.

India-Chile trade ties

Chile is India’s fifth largest trading partner in South America, with bilateral trade touching $3.8 billion in 2024 from $1.5 billion in 2020, according to a note by the Ministry of External Affairs (MEA). In 2024, exports from India totalled $1.2 billion and imports from Chile amounted to $2.6 billion.

More than half of Chile’s exports to India consist of copper ores and concentrates, unrefined copper, and copper scrap, followed by molybdenum ores and concentrates. Since lithium-ion battery manufacturing in India is still in its early stages, it does not import any lithium from Chile.

Automobiles and pharmaceuticals lead India’s exports to Chile.

“India’s exports to Chile had been growing steadily since 2009, with the exception of a slight decrease in 2014, when a new carbon tax on diesel vehicles in Chile adversely affected motor vehicle exports from India, but the sector saw a big recovery later on,” the MEA note said.

“India’s trade with Chile registered a negative growth over a couple of years due to the global slowdown and the domestic social crisis and labour unrest in Chile. The trade has since picked up and shown a robust recovery,” it added.

India and Chile’s announcement of a potential CEPA, set to facilitate freer trade in critical minerals, follows their 2016 expansion of the India-Chile Preferential Trade Agreement (PTA) from 474 to 2,829 tariff lines.

Indian cos look to mine in Chile

In a roundtable with his Chilean counterpart, Reddy said with the approval of the National Critical Mineral Mission (NCMM), India is keen on securing a stable supply of critical minerals for EVs, renewable energy, and electronics manufacturing.

“Indian companies are also keen to explore Greenfield & Brownfield mining investments in Chile, fostering stronger G2G & B2B partnerships,” he said, according to a post on X by the mines ministry.

The session was also attended by the chief executives of major Indian mining companies, including those with copper refineries like Hindalco, Adani, and Vedanta, who depend on imports of copper concentrates and unrefined copper for use as raw material.

“The discussions focused on expanding cooperation in copper production, mineral exploration, and sustainable mining practices. CEOs raised key questions on investment opportunities and business-to-business partnerships,” the mines ministry said on X.

In April last year, Mines Secretary V L Kantha Rao had led a delegation to Santiago, Chile to participate in mining conferences and visit copper mines. In July 2024, Khanij Bidesh India Ltd (KABIL), a joint venture under the mines ministry, signed an agreement with Chile’s state-owned Empresa Nacional de Minería (ENAMI) to explore a lithium block.