Trade Talks Under Scrutiny: India’s draft pact with Chile raises industry concerns

The CEPA aims to expand on the current Preferential Trade Agreement between the two nations. India’s draft includes provisions for long‑term supply of lithium and copper, vital for clean‑tech and manufacturing, alongside collaboration in MSMEs and digital services. Business associations are alert to potential challenges around tariff and non‑tariff barriers, given India’s $2.5 billion trade deficit with Chile. The next round of negotiations is scheduled for December 2025 in New Delhi, following October talks in Santiago.  

 

Notable updates  

* India and Chile advancing CEPA talks after October 2025 negotiations in Santiago  

* Draft includes chapter on critical minerals, key for India’s clean‑tech ambitions  

* India seeks long‑term supply agreements for lithium and copper  

* Business associations monitoring tariff and non‑tariff conditions closely  

* Bilateral trade doubled to $3.6 billion in FY 2024–25, but deficit persists  

 

India’s draft agreement signals a strategic push to secure critical resources and deepen trade ties, but industry groups remain cautious about conditions that could impact domestic competitiveness.  

 

Sources: Business Standard, IndBiz, SME Times