India and Chile Advanced Economic Partnership Talks
Manufacturers in electronics and energy should monitor progress on critical mineral access as trade talks progress.
Updated on Oct. 4, 2026 in International Trade
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India and Chile are negotiating a Comprehensive Economic Partnership Agreement (CEPA) to broaden the scope of trade in goods, services, and investments. The countries aim to conclude these negotiations by the end of 2026 to address critical mineral supply chains.
Why it matters
India is seeking to secure steady access to critical minerals essential for its growing electric vehicle, electronics, and renewable energy sectors. Obtaining these resources is a central pillar of the negotiations, as India considers this access a key trade-off for opening its domestic markets to Chilean goods.
In 2025, India imported $3.97 billion in goods from Chile against $1.41 billion in exports, a trade gap that reflects the current reliance on Chilean mineral production. The parties are building on prior agreements that already cover 1,031 Indian and 1,798 Chilean tariff lines.
The players
Codelco
Chile's state-owned copper mining corporation that is the largest producer of mined copper globally.
Kutch Copper
A subsidiary of the Adani Group focused on copper smelting and refining operations in India.
The details
The negotiations aim to deepen the existing trade relationship established through a 2006 preferential agreement and its 2017 expansion. While the countries are pursuing a broader deal, Chile currently maintains strict legal restrictions on preferential access to raw materials. Operations are already adjusting, as evidenced by a November 2025 agreement between Codelco and Kutch Copper to explore three distinct copper projects.
Timeline
India and Chile signed a preferential trade agreement in 2006.
The initial trade agreement was expanded in 2017.
Annual trade figures were recorded in 2025.
Codelco and Kutch Copper signed a project exploration agreement in November 2025.
The two nations aim to conclude CEPA negotiations by the end of 2026.
Market Landscape
These negotiations represent an evolution of the 2006 India-Chile Preferential Trade Agreement, which was previously expanded in 2017. The current push seeks to move beyond standard tariff line concessions into complex investment and raw material access agreements.
Operators in the electronics and renewable energy sectors should evaluate their long-term supply dependencies on Chilean lithium and copper as these negotiations unfold. Companies should watch for new regulatory shifts in raw material export laws that could impact landed costs and procurement schedules.
The takeaway
Securing a reliable supply of critical minerals is the central strategic challenge for Indian manufacturing in this trade partnership. Business leaders should monitor the outcomes of the three copper projects initiated by Kutch Copper as a bellwether for future cross-border joint venture feasibility.
What happens next
The primary milestone to watch is the scheduled conclusion of the Comprehensive Economic Partnership Agreement (CEPA) negotiations by the end of 2026.
Further reading
For context on how shifting bilateral agreements affect supply chains, visit International Trade.
Source note: This article includes information reported by @businessline.
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