Critical minerals, Antarctica focus of India- Chile talks on economic partnership

New Delhi: India and Chile will soon begin talks on a Comprehensive Economic Partnership Agreement (CEPA) focusing on a wide range of sectors like critical minerals, Antarctica and digital public infrastructure, Prime Minister Narendra Modi said in a joint statement with Chilean President Gabriel Boric on Tuesday.

The statement came after Modi met with Boric, who is on a five-day state visit to India, his first since taking office, to review bilateral ties and discuss global issues.

"Partnerships in the field of critical minerals will be emphasized. Efforts will be made to establish resilient supply and value chains. In agriculture, we will collaborate to enhance food security by leveraging each other's strengths," the statement said.

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"India is ready to share its positive experience with Chile in the areas of digital public infrastructure, renewable energy, railways, space and more," it said.

"We see Chile as the gateway to Antarctica. We welcome today's agreement on the Letter of Intent to strengthen cooperation in this vital region," it added.

According to the commerce ministry, India's goods exports to Chile stood at $1.18 billion in FY24, up 1.42% annually, while imports stood at $1.51 billion, up 5.45% annually.

Key commodities

Major commodities exported to Chile include motor vehicles, drug formulations, engineering goods, drugs and pharmaceuticals, textiles, ceramic products, glassware, spices, fruits, vegetables, and petroleum products. In return, India receives copper ore, halogens, sulfate, chemical wood pulp, walnuts, etc.

India is aiming to boost exports of maize, fresh or dried bananas, groundnuts, oil cakes, and other agricultural items to Chile, which shares borders with Peru, Bolivia and Argentina.

Chile, Argentina and Bolivia make up the 'so-called Lithium Triangle,' which holds some of the largest deposits of lithium worldwide – a mineral that is crucial to India's ambition to transition to sustainable energy sources and reduce its carbon footprint.

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The mineral plays a vital role in electric vehicles, battery manufacturing, mobile phones, and other energy storage technologies.

"Increasing cooperation in the field of defence is a symbol of our deep mutual trust. In this area, we will move forward to create defence industrial manufacturing and supply chains as per each other's needs. We will increase cooperation between the agencies of both countries to face common challenges like organized crime, drug trafficking, and terrorism," the joint statement said.

"Globally, India and Chile agree that all tensions and disputes should be resolved through dialogue. We are unanimous in saying that to face global challenges, reform of the United Nations Security Council and other institutions is necessary," it added.

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