What is the level of bilateral trade between our two countries?

The existing India-Chile Preferential Trade Agreement (PTA) has laid the foundation for our trade relations, of about $2.8billion, with India’s exports to Chile amounting to approximately $1.2 billion in 2022. The trade between our countries covers a wide range of products, including ores, copper, edible fruits, inorganic chemicals, and wood pulp, among others. Notably, India has extended fixed tariff preferences, ranging from 10% to 50%, on 178 specific tariff lines to Chile, while Chile has granted India tariff preferences on 296 tariff lines at the 8-digit level. This indicates a significant level of trade engagement and cooperation between our two nations.

Chile, being the world’s largest producer of copper, lithium, and iodine, along with agricultural products such as fresh grapes and blueberries, stands as a rich source of critical minerals. This makes Chile one of the potential trade partners under consideration for India, as mentioned by Commerce Secretary Sunil Barthwal earlier this year. Furthermore, the level of trade between our countries is indicative of the opportunities and potential for further expansion and diversification of trade relations in the coming years.

In 2022, Chile imported approximately $109.26 billion worth of goods, with the US, China, Brazil, Argentina, and Germany being its primary sources for imports. While the top 10 exporting nations accounted for over 75% of Chile’s total imports, India’s contribution to Chile’s import market holds promise for further growth and collaboration. This demonstrates the substantial role that India may play as a trading partner for Chile and sets the stage for continued cooperation and mutually beneficial trade relations.

It is worth noting that both India and Chile are actively engaged in negotiating trade agreements with various countries and regions, showcasing a commitment to fostering global trade relations. India’s willingness to sign bilateral trade agreements, including with countries like Chile, signifies a proactive approach to lowering barriers to trade and establishing clarity and certainty around the business environment for domestic and foreign firms alike. This proactive stance by both countries further solidifies the level of bilateral trade, emphasizing the potential for enhanced economic cooperation and trade growth between India and Chile.

The level of bilateral trade between India and Chile reflects a strong foundation for economic collaboration and growth. The existing trade relations, along with the active engagement in negotiating trade agreements, demonstrate the commitment of both nations to expand and diversify their trade ties. As the Ambassador of Chile to India, I am optimistic about the potential for further strengthening our trade relations and exploring new avenues for cooperation that will benefit the economies of both countries.

If you were to tell Indian businesses to invest in Chile, in which areas would you say opportunities are the highest?

I would strongly encourage Indian businesses to consider investing in Chile, a country that offers a wealth of opportunities across various sectors. Chile’s robust and diverse economy, along with its business-friendly environment and strategic location, makes it an attractive destination for foreign investment. Here are some areas where I believe the opportunities for Indian businesses are particularly high:

Mining and Natural Resources: Chile is a global leader in copper production, accounting for a significant portion of the world’s supply. Additionally, it possesses abundant reserves of lithium, a critical mineral essential for the production of batteries and renewable energy technologies. Indian businesses can explore investment opportunities in the mining and natural resources sector to capitalize on Chile’s rich mineral deposits.

Renewable Energy and infrastructure: Chile is endowed with exceptional renewable energy potential, particularly in solar, wind, green hydrogen and geothermal energy. The country has made significant strides in developing its renewable energy infrastructure, offering favourable conditions for investment in clean energy projects. Indian businesses specializing in renewable energy technologies and infrastructure development have the opportunity to contribute to Chile’s sustainable energy transition.

Agriculture and Food Processing: Chile is known for its high-quality agricultural products, including fruits, vegetables, and seafood. The country’s favourable climate and advanced farming techniques make it an ideal location for agribusiness and food processing ventures. Indian companies can explore partnerships in agricultural production, food processing, and technology transfer to leverage Chile’s agricultural potential.

Information Technology and Innovation: Chile has been fostering a thriving tech and innovation ecosystem, with a growing start-up culture and government support for technology-driven industries. Indian IT companies and start-ups can collaborate with Chilean counterparts in areas such as software development, fintech, e-commerce, and digital solutions, taking advantage of Chile’s emerging tech landscape.

Tourism and Hospitality: Chile’s diverse natural landscapes, including the Atacama Desert, Patagonia, Eastern Island and its stunning coastline, present significant opportunities for tourism and hospitality investments. Indian businesses in the hospitality and tourism sectors can explore ventures in hotel development, ecotourism, adventure tourism, and related infrastructure to cater to the growing demand from domestic and international travellers.

Healthcare and Pharmaceuticals: The healthcare sector in Chile offers potential for collaboration in pharmaceuticals, medical equipment, and healthcare services. Indian pharmaceutical companies can explore partnerships for drug manufacturing, research and development, and the provision of healthcare solutions to address Chile’s evolving healthcare needs.

In summary, Chile presents a wide array of investment opportunities across sectors such as mining, renewable energy, agriculture, technology, tourism, and healthcare. Through strategic partnerships and investment initiatives, Indian businesses can contribute to Chile’s economic development while reaping the benefits of a dynamic and growing market. I am confident that by tapping into these high-potential areas, Indian businesses can forge successful and mutually beneficial partnerships in Chile.