India and Chile are seeking to conclude negotiations on a Comprehensive Economic Partnership Agreement by the end of 2026, with both sides working towards a balanced framework for wider trade, investment and commercial cooperation.
Commerce Secretary Rajesh Agrawal met Chile’s Vice-Minister of International Economic Relations, Paula Estévez Weinstein, in Santiago on August 26 to advance the negotiations. The latest engagement was announced on August 30 and reflects an effort to move the proposed agreement towards completion within the year.
The two countries are looking beyond tariff reductions to a broader economic arrangement capable of creating practical opportunities for businesses. Priority areas identified during the discussions include healthcare, pharmaceuticals, energy, minerals, agriculture, machinery and engineering.
The proposed agreement is also expected to support cooperation in technology, talent and resilient supply chains. These areas have gained importance as governments and companies seek more diverse sources of critical inputs and try to reduce exposure to disruptions in concentrated global production networks.
Chile is a significant minerals producer and a major economy on South America’s Pacific coast, while India offers a large and expanding market in pharmaceuticals, engineering goods, digital services and manufactured products. A comprehensive agreement could create clearer rules and more predictable access for firms operating across the two markets.
Critical minerals are likely to remain an important part of the economic conversation. India is expanding clean-energy systems and advanced manufacturing, both of which require secure supplies of minerals and processed materials. Chile’s resource base and India’s industrial and technological capacity provide a basis for cooperation, although specific commitments will depend on the final negotiated text.
The CEPA process was formally advanced after the two sides signed terms of reference in May 2025. Negotiating rounds have since examined a wide set of subjects associated with a modern trade agreement, including goods, services, investment, rules of origin, standards and other regulatory matters.
Both sides have emphasised that the final arrangement should produce commercially meaningful and equitable outcomes. That requires negotiators to balance market access with domestic sensitivities, while ensuring that agreed rules are clear enough for exporters and investors to use.
For Indian businesses, a successful agreement could improve access to a key Latin American market and support connections with regional value chains. For Chilean companies, India presents opportunities in a large consumer market and in sectors where demand for energy, food products, minerals and technology is growing.
The negotiations also fit India’s wider effort to deepen economic engagement with Latin America. Greater trade with the region can diversify export destinations and supply sources, while sectoral partnerships may support investment, research and industrial collaboration.
A year-end target gives the negotiating teams a clear timetable but does not guarantee completion. Outstanding issues will still require technical work and political decisions before a final text can be agreed. The Santiago engagement nevertheless indicates that both governments want to maintain momentum and convert the expanding political relationship into a more structured economic partnership.
