On March 8, 2006, Chile and India signed a Preferential Trade Agreement (PTA) that came into effect in September 2007. On May 16th, 2017, this agreement was expanded updating its scope of goods to 2829 tariff lines from 474 previously. The third round of negotiations for the second expansion of the PTA took place in October 7, 2021. Besides the PTA, both countries signed an agreement in March 2020 to avoid double taxation which is in full force for both countries after the internal approval process. The trade between the two nations has been growing steadily. The main Chilean exports to India are commodities such as copper ore and concentrates, molybdenum, iodine, nuts, pulp of wood, fresh fruits (kiwi) reaching total exports up to US$ 1.505,8 million dollars in 2023 while Indian imports were valued to US$ 1.340 million dollars. Indian imports include vehicles, pharmaceutical products, electrical machinery and equipment machinery and mechanical appliances, textiles, organic chemicals, among others. The Chile-India PTA has meant an important expansion of bilateral trade, establishing a solid framework for economic cooperation between both countries. Primarily, India invested in Chile in mining and IT sectors (1974-2012). In recent years, India has entered the Chilean market through acquisitions of Chilean companies or through joint ventures. Indian pharmaceutical products have also experienced an important growth in Chile. Chilean investments in India amounts US$ 118 million in the Indian financial sector. Furthermore, India’s interest in securing critical minerals imports from Chile enhances the scope and importance of this partnership. With steady growth in bilateral trade and reciprocal tariff concessions, the commercial relationship between India and Chile is set for continued expansion and mutual prosperity.
