India-Peru FTA Negotiations on Critical Minerals

India–Peru FTA: 

Objective: India aims to secure long-term access to critical minerals (lithium, copper, zinc, molybdenum, rare earth elements) from Peru to support its green energy transition and EV manufacturing.

• Negotiations:

  • India submitted a non-paper outlining key demands and sensitivities.

  • Next round of FTA talks expected by July-end 2025.

• Strategic Importance:

  • Ensures permanent and stable supply of minerals, reducing risks from policy changes.

  • Supports India's push for self-reliance in renewable energy and battery technology.

• Trade Snapshot (FY25):

  • India’s exports to Peru: ↑ 9% to $1 billion+.

  • India’s imports from Peru: ↑ 60% to $5 billion.

• Key Indian export interests:

  • Automobiles, cotton yarn, pharmaceuticals.

• Peruvian export interests:

  • Avocados, grapes, blueberries, coffee, cocoa, and gold.

• India’s concerns:

  • Agriculture sector is sensitive; protected for food and livelihood security.

  • Reluctant to reduce gold import duties due to past misuse (e.g., UAE FTA).

• Strategic benefits:

  • Reduces dependence on Asian countries for lithium.

  • Encourages joint mining partnerships to boost downstream industries in EV and ACC manufacturing.

• Broader context:

• FTA with Peru complements ongoing trade talks with Chile.

• Helps India diversify exports and strengthen presence in Latin American markets.