Lithium is called “white gold” due to its immense economic and technological importance. It is no less than a boon for electric vehicles. While India is heavily dependent on China for lithium, it is actively exploring alternative sources, and Chile has played a key role in this regard. Recent reports indicate that talks on a trade agreement between India and Chile are progressing at a rapid pace. Chile is the world’s largest copper producer and the world’s largest lithium reserve holder. Now, news has come that talks on a trade agreement between the two nations have reached the final stage.
Dependence on China will be significantly reduced:
The agreement between the two nations could take India’s manufacturing sector to the next level and significantly reduce its dependence on China. According to sources, the trade agreement between India and Chile has reached the final stage, with the Commerce Secretary expected to visit the South American country this month. Securing access to key minerals like copper and lithium has become a top priority for India.
Trade between the two countries is growing:
According to sources, the proposed Comprehensive Economic Partnership Agreement (CEPA) is expected to provide greater market access to Indian exporters. Chile is the world’s largest copper producer and has some of the world’s largest lithium reserves. The country is also a major producer of other minerals, which are essential for industry and clean-energy supply chains. Recent trade data highlights the growing importance of this relationship for India. According to the data, trade between the two countries increased by about 74% to $2.06 billion in the June quarter, compared to $1.19 billion in the same period last year.
Negotiations began last year:
India and Chile finalised the terms and conditions for CEPA negotiations on May 8, 2025, and the first round of talks began in New Delhi later that month. Since then, the two countries have held four rounds of talks, the last of which concluded in New Delhi on December 5. During his visit to India in May, Chilean Foreign Minister Francisco Perez McKenna and senior trade officials discussed the initial finalisation of CEPA with Commerce Minister Piyush Goyal and Agarwal.
